If You're a Buyer, There May Be a Grant or Assistance Program for You

Down Payment Sources

There are more homes on the market now, but at the current price point in Southern California, the ability of many buyers to buy is hindered by not enough funds to close escrow. First of all, a 20% down payment is not a requirement to buy. (see below**.) There are loan programs such as FHA and VA which allow for 3.5% down payment or less, plus FHA 30-year interest mortgage rates are usually an improvement compared to conventional loan rates.

Then, various banks such as BMO, Citibank and Chase offer down payment assistance programs, or grants to 1st time buyers, and these aren't the only sources. Some do have income level requirements (BMO allows a total of $213,000 annual income).  There are also programs for DACA recipients. It pays to look into these programs, because it may make the difference on whether you buy or not.

An important tool is the Down Payment search tool which allows for the input of a certain address, then asks for the type of property of interest, then general questions about income and if you're a veteran, before moving on to more details. This does not take the place of a loan qualification, but is designed to inform a buyer about potential opportunities. To find out specific programs based on your information, it does require input of name and phone or email and whether or not you're working with an agent. While some people are reluctant to give that out, you're not required to keep receiving information, please read their privacy policy. Because I'm an agent, the system emailed me the following linked programs based on an $899,000 single family listing in Long Beach, and $100,000 income, and will also send you as the enquirer the same information: 

CBC Mortgage Chenoa Fund - FHA Forgivable DPA
Combined Assistance, up to $44,950 (5% of Purchase Price) in assistance

CBC Mortgage Chenoa Fund - FHA Repayable DPA
Combined Assistance, up to $44,950 (5% of Purchase Price) in assistance

National Homebuyers Fund (NHF) - Data Mortgage, Inc. dba Essex Mortgage 10 Year Amortized 2 Plus
Combined Assistance, up to $44,950 (5% of Purchase Price) in assistance

National Homebuyers Fund (NHF) - Data Mortgage, Inc. dba Essex Mortgage Forgivable/Deferred Program
Combined Assistance, up to $31,465 (3.5% of Purchase Price) in assistance

Golden State Finance Authority (GSFA) Golden Opportunities Program
Combined Assistance, up to $42,702 (5% of Total Loan Amount) in assistance

Golden State Finance Authority (GSFA) Platinum Assist To Own - Conventional
Combined Assistance, up to $42,702 (5% of Total Loan Amount) in assistance

Golden State Finance Authority (GSFA) Platinum Down Payment Assistance - Government
Combined Assistance, up to $42,702 (5% of Total Loan Amount) in assistance

Golden State Finance Authority (GSFA) Platinum Down Payment Assistance Program - Conventional
Combined Assistance, up to $42,702 (5% of Total Loan Amount) in assistance

Golden State Finance Authority (GSFA) Platinum SELECT Down Payment Assistance - Government
Combined Assistance, up to $42,702 (5% of Total Loan Amount) in assistance

Golden State Finance Authority (GSFA) Platinum SELECT Down Payment Assistance Program - Conventional
Combined Assistance, up to $42,702 (5% of Total Loan Amount) in assistance

This information is then forwarded on to the prospective buyer. If you wish to find out more sources, just use the form and I would be happy to send you a list such as this for you to use at your discretion. The results will depend on area or city, income, credit score, how many buyers, or if you currently rent or own.  Not all lenders work with all programs, and you always have the option of contacting a loan officer to inquire about their programs. But using this tool gives you an overview of multiple sources before you shop.

The important thing to know is, there may be an option for you, so don't be afraid to start searching.

**Nearly 1 in 2 buyers made a down payment of 10% or less. In the meantime, less than 30% of buyers made a down payment above 20%, often repeat buyers using equity from previous home.  Smaller down payments are the norm, showing how buyers are adapting to today's affordability challenges while still becoming homeowners. The idea that you need a 20% down payment is one of the biggest myths in real estate." Nadia Evangelou, Senior Economist, National Association of REALTORS.

 

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

What the Government ShutDown May Mean for Some Clients Right Now

Capitol Building

With Congress failing to pass funding legislation by September 30, the federal government shut down on October 1. 

Will most home sales and closings continue?
Yes. Most transactions will still move forward. However, REALTORS® should prepare clients for potential slowdowns in loan processing, appraisals, and flood insurance.

Do all federal government housing-related programs stop during a shutdown?
No. While many departments face reduced staffing in a limited capacity with “essential” services, the most critical housing and mortgage programs retain their core functions. However, delays are common in programs that require staff involvement.

What happens to Federal Housing Administration (FHA) single-family loans?
Most FHA single-family home loans will continue to move forward without interruption. New FHA single-family loans can still be endorsed during a shutdown.

What about FHA condominium projects and other approvals?
Some FHA programs — such as Home Equity Conversion Mortgages (HECMs) and Title I loans — are paused. Activities requiring U.S. Department of Housing and Urban Development (HUD) staff discretion, like manual underwriting for new condominium project approvals, are likely delayed until the government
reopens. C.A.R. members should consider checking HUD’s list of already-approved condominium
projects.

How are conforming mortgages from Fannie Mae and Freddie Mac (the government-sponsored enterprises, or GSEs) impacted?
The GSEs generally retain their core functions during a shutdown. However, some services that depend on other federal agencies may be affected. For example, Internal Revenue Service (IRS) tax transcripts may be unavailable, requiring lenders to obtain transcripts and close later.

Can active-duty service members and Veterans still apply for VA home loans?
Yes. U.S. Department of Veterans Affairs (VA) loan guarantees remain available, and lenders can continue processing applications. However, reduced staffing during a shutdown may cause delays in appraisals, certificates of eligibility, and underwriting support. 

Can my client still apply for flood insurance?
Applications for new or renewed federal flood insurance policies cannot be issued by the National Flood Insurance Program (NFIP) during the shutdown. Existing NFIP policies remain valid until they expire, and claims will continue to be paid while funds last. Policies may also be transferred from seller to buyer during a transaction. If your clients are seeking an immediate flood insurance policy, private insurance remains an option that is unaffected by the shutdown. 

 Courtesy of California Association of REALTORS.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Money Laundering Rule in Effect as of March 1, 2026

As of March 1, 2026 (note date change) a new rule issued by FinCEN (Financial Crimes Enforcement Network) takes effect.  This rule applies to real property of one to four residential units, vacant land intended for construction of residential of one to four residential units, where the buyer is a legal entity or trust,and the buyer is making an all-cash purchase or financing the purchase through a bank,  etc., that does not have an independent money laundering reporting obligation.  

Information required to be collected by a "reporting person" which typically is the escrow or title company in the transaction, will include legal names, dates of birth, dates of execution of trusts, addresses, dba's, citizenship (for trustees and beneficial owners), taxpayer identification numbers, and if needed account number and financial institution name from which payment is made.

Additionally, there will probably be an extra charge in escrow for collecting this information which according to one escrow officer could be as much as an additional $700.  California Association of Realtors is including this transactional information now, so that any properties already begun prior to December 1 will be covered. This information is in a separate required form now, but is currently planned to be incorporated into the standard residential purchase contract in June, 2026.

And, should all necessary information not be delivered as requested on a timely basis, the Reporting Person will not close escrow, and any party not providing this information may be in breach of contract and the other party may be entitled to cancel.

While more regulations and forms to sign in escrow are met with a tired groan, bear in mind that "in 2025, financial crime is more sophisticated than ever, costing the global economy up to $2 trillion annually, according to the UN Office on Drugs and Crime ." https://www.moodys.com/web/en/us/kyc/resources/insights/aml-in-2025.html, involving cryptocurrency, real estate transactions, and other ways of laundering money. 

See more at :  https://www.realtor.com/news/trends/fincen-money-laundering-rule-crackdown-all-case-home-purchases/ and at FinCEN: https://www.fincen.gov/boi-faqs

 NOTE:  The implementation date has changed from December 1, as posted in the original article, to March 2, 2026. Article links may still have December 1 date.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

California Housing Market Projection for 2026

California Assoc of REALTORS 2026 Prediction

The 2026 Housing Market Forecast is out, and the overall prediction is that the median price will continue to inch up from the 2025 median of $873,900 to a 2026 median of $905,000.

Resale volume is still under the 2021 level, and in 2026 will be projected to 274,400 units, well under the 444,500 level of 2021, but ahead of the 2025 level of 269,000 units.

Per the California Association of REALTORS:

"Inflation will likely pick up in the next 12 months, but the annual average Consumer Price Index (CPI) for 2025 will dip slightly to 2.8 percent, before bouncing back up to an average of 3.0 percent next year. The average 30-year, fixed mortgage interest rate will moderate slightly to 6.6 percent in 2025 but will decline more solidly to 6.0 percent in 2026. While next year’s projected average for the 30-year fixed mortgage interest rate will still be higher than the levels observed in the few years prior to the pandemic, it will be lower than the long-run average of nearly 8% in the past 50 years." (Per Bankrate: September 18, 2025, the current average 30-year fixed mortgage interest rate is 6.23%.)

Housing affordability is expected to inch up to 18 percent next year after edging up to a projected 17 percent in 2025 from 16 percent in 2024. 

“As economic uncertainty begins to clear up in the next 12 months and mortgage rates start declining more consistently in the upcoming quarters, housing sentiment will see some improvement in 2026,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “However, mounting headwinds such as the ongoing trade tensions between the U.S. and its trading partners, the home insurance crisis, and a potential stock market bubble will remain challenges for the housing market in upcoming year,” Levine continued.               

The complete Market Forecast will be posted soon on the CAR website.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996