My-Down Payment Assistance, a top provider of down payment assistance programs based in Sacramento, Calif., announced its new first-time home buyers’ programs that they will be offering in 2021.

Following the recent Federal Housing Finance Administration decision on Nov. 24, the new “conforming” loan limits for high-cost areas, including Sacramento and Orange County, will rise to $822,375. Starting Jan. 1, a 7.4 percent increase over 2020’s limit of $765,600. This means more people living in these high-cost areas will be eligible for first time home buyers’ programs.

“A first-time home buyer in Sacramento is usually an individual who has never owned a home before,” the company said in a release. “However, the definition encompasses a broader explanation, for example, not having owned a home within the previous three years. The U.S government and other private lenders have different programs that help people to own their houses. Homeownership offers a great way that people can use to build up their wealth with little money to get started. This means that buying a home is similar to leveraging investments, while the benefits include building equity.”

With My Down Payment Assistance, first-time home buyers can access the best California down payment assistance programs for 2021.  

“The higher the down payment is, the lower the interest rate will can be. Some of the programs accessed by first time home buyers include conventional mortgages, USDA and V.A. loans, FHA loans, down payment assistance loans, down payment assistance grants, tax credits, closing assistance, HomePath Ready Buyer Program, Good Neighbor Next Door program, CalHFA, Open Doors GSFA, Platinum GSFA and more,” My-Down Payment Assistance said.

The company said that the most popular First Time Home Buyer Sacramento programs among first-time home buyers are the conventional mortgages and Federal Housing Administration (FHA) loans. In a bid to ease access to mortgage credit across the U.S., companies such as Freddie Mac and Fannie Mae have come up with special programs that will only require a 3 percent down payment.

The FHA, according to the release, also offers mortgage options for as low as 3.5 percent. However, to be eligible for an FHA loan, potential customers need to have a FICO score of above 580. Furthermore, FHA loans will also come with an upfront and annual MIP (mortgage insurance premium).

“The upfront MIP is fixed at 1.75 percent of the total loan, while the annual MIP will be determined by the down payment and the payment period. In Sacramento, to qualify for California down payment assistance programs for 2021, first-time home buyers must have qualifying income, meet a 600-credit score, and occupy the house they obtained as a primary residence,” the company said.