Buying Your First Home in the Coachella Valley

If you’re a first-time homebuyer in the Coachella Valley, chances are you’ve asked the same question I hear every week:

“How can I buy a home with no money down?”

It’s a fair question—and one I love helping people answer.

Just recently, I worked with a local family who had solid income but no savings for a down payment. They weren’t sure they could move forward. But here’s the good news: They could. And you might be able to as well.

Let me walk you through the two key options we discussed—because understanding the pros and cons upfront could save you a lot of stress (and money) down the road.

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Option 1: CalHFA Down Payment Assistance

The California Housing Finance Agency (CalHFA) is a state-backed program that helps first-time homebuyers by covering your down payment—and even your closing costs—through junior loans.

With this setup:

You use an FHA loan with a 3.5% down payment.

CalHFA provides a junior lien that covers that down payment at just 1% interest and no monthly payments.

You can even apply for a second junior loan to help cover closing costs.

That means: You could get into a home with almost no money out of pocket.

Sounds great, right?

It can be. But I always make sure my clients understand the trade-offs too.

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What’s the Catch?

Here’s what you need to know:

Higher Interest Rate: CalHFA loans often come with rates about 0.5% higher than standard FHA loans. That translates to a higher monthly payment.

Stricter Qualifications: Your credit score must be at least 660, and your debt-to-income ratio can’t exceed 45%.

No Initial Equity: Since your down payment and closing costs are financed, you’re starting with zero equity in the home.

Limits on Future Moves: If rates drop and you want to refinance in a couple of years—or if your family grows and you need a bigger home—you might find it hard to move forward if you haven’t built enough equity to pay off those junior loans.

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Option 2: Market-Rate FHA Loan with Assistance

This option takes a little more planning but could give you better long-term flexibility.

Instead of CalHFA:

You secure a standard FHA loan with a lower interest rate.

You cover the down payment through a gift from a family member or by borrowing against a 401(k).

Your closing costs can be covered by negotiating a seller credit with a savvy real estate agent.

The benefits?

Lower monthly payments

Easier refinancing opportunities in the future

More equity buildup, which helps when it’s time to sell and move up

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So Which Is Right for You?

If you’re just starting out and need help getting into your first home here in the Coachella Valley, the CalHFA program can be a great fit.

But if you can manage the down payment through other means, a standard FHA loan might offer more freedom—and savings—in the long run.

My role isn’t to sell you one loan or another. It’s to educate and empower you so you can make the smartest decision for your future.

Because at MortgageWorks, we don’t believe in one-size-fits-all solutions. We believe in giving you the full picture—the answers are on the house.

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Let’s Talk About Your Options

If you’re thinking about buying your first home—or just have questions about financing options—I’d love to talk.

I’ve been helping Coachella Valley families like yours for years, and I’d be honored to help you too.

Give me a call, shoot me a message, or stop by the office. We’ll look at your situation together and find the right path forward—whether that’s with CalHFA, FHA, or something else entirely.

Art Alvarez
MortgageWorks | Serving the Coachella Valley
Call Us: 760-969-5023]
Visit: https://www.mwloan.com/

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Because when it comes to buying a home in the desert—you deserve the straight story and a partner who has your back.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.