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Short Summary
Main recommendation: Build a relationship now with your "core four" team (loan officer, real estate agent, and others) so you hear about time-limited opportunities like California's Cal HFA down payment program before they run out. The speakers explain that Cal HFA shared 20% of the home's equity with the state in place of a 20% down payment, and that it was paused after its funds ran out within weeks, it is described as paused rather than ended, with reimbursement expected once existing participants sell or refinance.
Key Points
- Cal HFA worked as a shared-equity loan: the state covered a 20% down payment, the buyer took an 80% standard loan, and at sale or refinance the buyer repaid the state's 20% plus its share of appreciation.
- The program stopped because funds were tied up until earlier participants sold or refinanced, so it could not be reimbursed and reissued; it is "paused," not permanently ended.
- Timing decided who benefited: a standard escrow takes about 30 days, so buyers with fast pre-approvals and ready contracts got in first.
- One listing received 20 offers, 15 of them using Cal HFA offers, illustrating high demand for the program.
- Low-down-payment alternatives mentioned include VA loans (zero down, no PMI, reusable for primary residences), FHA loans (3.5% down, reusable after refinancing), and FHA down payment assistance.
- USDA loans require the property to be in a designated rural zone; these loans are fully underwritten and can be paired with a DSCR loan for investing.
Details Worth Noting
- Concrete instructions:
- Contact your loan officer, realtor, and other core team members now, before you need to buy, and ask what programs and market opportunities are currently available.
- Keep pre-approvals and communication current so you can move into contract quickly when a time-limited program appears.
- Check whether a property qualifies for USDA financing by using the free USDA property lookup tool: search "USDA property lookup tool" and enter the address to see if it is in a designated rural zone.
- If you are a veteran, ask a lender about a VA loan, which the speakers call the best loan in America.
- Ask about FHA down payment assistance if you cannot cover the 3.5% FHA down payment.
- The speakers note that 100% LTV financing is not for everyone, though it may help in situations like house hacking, where it reduces living costs compared with renting.
- Christian Bachelor is named as the mortgage speaker; David Green is the other host and works with the David Green Team.
Bottom Line
Waiting until you are ready to buy can cost you access to limited-time programs, so build lender and agent relationships early and check eligibility for low-down-payment options such as VA, FHA, and USDA loans.
