Freddie Mac Expands Down Payment Assistance Website to Include California

Freddie Mac Expands Down Payment Assistance Programs in California

What a way to kick off the new year! On Jan. 1, Freddie Mac announced the expansion of its down payment assistance website and search engine, DPA One, to include California. This move comes as a welcome relief to many home shoppers in the state who are struggling to afford the high prices of starter homes.

DPA One is a tool that aggregates down payment assistance programs in a single, standardized platform, making it easier for lenders to access and compare different programs. According to Freddie Mac, the down payment is often the biggest hurdle for first-time buyers, especially in a market like California where prices are soaring.

With the expansion of DPA One, California homebuyers now have access to 80 different down payment assistance programs. These programs offer a variety of options, including deferred payment plans, gift assistance, and second mortgages.

One example provided by Freddie Mac is a program from the Golden State Finance Authority that offers a 3.5% down payment of the sales price, which is deferred and payable when the home sells or is refinanced. Additionally, the program provides an additional 2% gift for down payment and closing cost assistance that does not have to be repaid.

While DPA One is a valuable tool for homebuyers, there are some limitations to be aware of. For instance, users can only compare a maximum of three programs side by side, even if there are more available. Additionally, consumers may struggle to understand some of the nuances within the site’s questions, such as the difference between annual household income and annual qualifying income.

Despite these limitations, the expansion of DPA One is a step in the right direction for Freddie Mac as it enters the consumer-facing market. By providing direct access to down payment assistance programs, the mortgage giant aims to improve payment affordability and reduce settlement charges for homebuyers.

In addition to DPA One, there are other resources available to California homebuyers, such as Down Payment Resource, which offers even more assistance programs. Consumers are advised to work with a mortgage loan originator who understands the program limitations and nuances to ensure they find the best option for their needs.

Overall, the expansion of down payment assistance programs in California is good news for homebuyers looking to make their dream of homeownership a reality in the new year. With more options available, it’s easier than ever to find the assistance needed to purchase a home in the Golden State.