The Bay Area Community Guardian Grant is a 100% forgivable grant offered through the public finance authority.
What is the Community Guardian Grant?
It is a national grant that is easy to qualify for and available in all states except Washington.
Unlike other down payment programs, this grant has many ways to qualify. There are rules and guidelines but they are much easier to quality and the benefits are staggering compared to other down payment programs offered through the state of California.
It is forgiven upon funding the loan and purchasing your home. Therefore, instant equity is obtained at closing.
Some of the most popular California down payment assistance programs are complicated to qualify for and make buying much more expensive than it should be. Because of this, most homeowners’ down payment programs, such as CalHFA, don’t make sense once you pencil out the figures.
The reasons why this Grant is different from other Down Payment Assistance are:
What Sets the Community Guardian Grant Apart?
First off, it’s not a loan. It’s a free grant from a government agency that you never have to pay back. The grant is issued through the public finance authority.
The amount of funds that qualify for our is based upon the monthly payment that is comfortable for you. To find out exactly how much Grant you could apply for, the first step is to crunch the numbers and determine your comfortable monthly payment and purchase price. You can ask your local mortgage professional to crunch the number for you.
Because these funds are not loans like other down payment assistance, it is very easy for a borrower to refinance and lower their interest rate just months after closing.
There are many ways to qualify. You don’t have to be a first-time homebuyer.
The grant is paired with a federal housing administration loan. The government insures these loans.
Since this grant is paired with a federal housing administration loan, it is straightforward for homeowners to refinance using the FHA streamlined process just six months after closing.
Homeowners who secure this funding can lower their interest rate by about 2% just six months after purchasing the home, saving hundreds of dollars per month and often thousands of dollars in interest over the life of the loan.
In contrast with other down payment assistance programs, it can be challenging to refinance the first mortgage because of the nature of those other down payment assistance programs or because the first mortgage is a second mortgage and will be different from a new mortgage in many cases.
Some of the benefits of the Community Guardian Grant Are
100% completely forgivable upon closing this means you start out with instant equity.
Paired with a government insured federal housing administration loan
May be combined with up to 6% in seller credits or concessions for closing costs.
FICO as low as 580 credit score qualifies.
Purchase transaction only on a 1 to 2 unit primary residence.
To qualify you must meet at least one of the following, First time homebuyer, current or retired Military, First responder, Educator, Medical personal or any record of civil servant. PTA members, Baseball coaches in the community.
Required homeowner education through a HUD approved counseling course like Framework Homeowners Education
In Conclusion
In conclusion, this is a great program that we advocate for. In our experience, many homeowners find a massive benefit to securing these funds.
Very few down payment assistance programs offer the level of benefits that this one does, paired with the easy ability to qualify. This is something anybody looking to buy a home should learn more about.
If you have questions, ask your local mortgage lender about the Bay Area Guardian Grant. If you don’t already have a lender or if perhaps they do not know about or have access to the Guardian grant, you’re always welcome to give us a call and ask us all your questions.
JASON WHEELER – 925-285-2172
Learn more about this grant and search all other down payment programs here.
About Jason Wheeler - Real Estate & Lending