A Simple Guide to CalHFA Programs for First-Time Homebuyers

Before We Begin

1️⃣ Zero-Down & Low-Down Loans = Early Entry Instead of waiting for a 20% down payment, Gen Z buyers are using programs like: 0% down FHA / down payment assistance 3% down conventional 3.5% down FHA That’s getting people into homes years sooner than their parents or older millennials. 2️⃣ 5/1 ARMs for Lower Payments Now With Bakersfield’s median price around $400K, a 5/1 ARM can offer: Lower initial monthly payments Higher purchasing power A runway until rates drop again Gen Z sees this not as a risk — but as a strategy. 3️⃣ Digital-First Homebuying This generation researches neighborhoods, compares lenders, and shops for homes from their phone — which fits Bakersfield’s spread-out geography and fast-moving market perfectly. 4️⃣ Build Equity Instead of Paying $1,580/mo in Rent When rent is nearly $1,600/month on average, and many starter-home mortgage payments are comparable (or lower with ARMs/zero-down), it makes financial sense for Gen Z to start building wealth now. 🔑 What Real Estate Agents & Lenders Should Keep in Mind Gen Z buyers in Bakersfield respond best to: Clear, transparent numbers Flexible loan options Side-by-side comparisons (rent vs. buy, down payments, ARM vs. fixed) A roadmap for the next 5–7 years (not just the first loan) This generation cares less about the “perfect” home and more about not missing their window to start building equity. 🎯 Ready to Buy Your First Home in Bakersfield? Get Pre-Approved Today. If you’re Gen Z — or any first-time buyer — the smartest move you can make right now is getting pre-approved before rates shift again and inventory moves. A pre-approval will: Show you exactly what you can afford Lock in opportunities for zero-down or low-down financing Make you a stronger, faster, more competitive buyer Put you ahead of renters still waiting on the sidelines I’ll run your numbers, explore every available program, and give you a clear plan — even if you’re not ready to buy for a few months. 👉 Start your Bakersfield pre-approval here: https://www.freshhomeloan.com/buy Garrick Werdmuller President CEO Fresh Home Loan Inc. 4900 California Ave 210-B Bakersfield, CA 93309 (661)-727-7077 NMLS 242952 All loan approvals are conditional and not guaranteed and subject to lender review of all information. Loan is conditionally approved when lender has issued approval in writing, but until all conditions are met, loan cannot be funded. Specified rates and [products may not be available to all borrowers. Rates subject to change according to market conditions and agreed upon lock times set by borrower. Fresh Home Loan Inc. is an Equal Opportunity Mortgage Broker in California. This licensee is performing acts for which a real estate license is required. Fresh Home Loan, Inc. is licensed by the California Department of Real Estate #02137513 NMLS # 2124104

A game-changer for high-cost California markets

For millions of self-employed Americans, qualifying for a home loan has always been a challenge. Traditional underwriting focuses heavily on tax returns — documents that often show a lower taxable income due to legal deductions and business write-offs. While these deductions help reduce tax liability, they can also make it harder to qualify for a mortgage using conventional methods. That’s where P&L (Profit & Loss) Loans step in. These programs offer a more realistic, common-sense approach for entrepreneurs, contractors, gig-economy workers, and anyone who runs their own business. Instead of relying on tax returns, the lender evaluates income based on a professionally prepared P&L statement. This makes the program a powerful option for borrowers whose true income is not fully reflected on their tax filings. Why Lenders Use a Profit & Loss Statement A Profit & Loss statement provides a clear financial picture of the business — revenue coming in, expenses going out, and the actual net profit being earned. For many self-employed borrowers, this document paints a far more accurate representation of their ability to repay a loan. However, because a P&L loan removes tax returns from the equation, lenders require the P&L to be credible, consistent, and prepared by a trusted professional. That’s why the lender will only accept a P&L completed by one of the following: A Licensed Certified Public Accountant (CPA) A CTEC-registered tax preparer An IRS Enrolled Agent (EA) with active status Borrowers can verify an Enrolled Agent’s status using the official IRS directory below: ➡ IRS Enrolled Agent Lookup: https://irs.treasury.gov/rpo/rpo.jsf These requirements ensure the lender receives accurate and verifiable financial documentation from a qualified tax professional. What the P&L Needs to Cover To assess income stability, lenders require the P&L to reflect 24 consecutive months of business activity. This can be done in one of two ways: A single 24-month P&L , covering the most recent two years, or A combination of statements , such as: Year 1 P&L Year 2 P&L Year-to-Date P&L The lender compares these periods to confirm that income is stable or increasing — a key factor in approval. If income fluctuates moderately (as it often does in self-employment), that’s okay; what matters most is that the overall trend is not declining. Who Benefits Most From a P&L Loan? P&L loans are ideal for business owners who: Write off significant expenses Earn uneven or seasonal income Have strong gross revenue but lower taxable income Prefer not to provide tax returns Need a streamlined alternative documentation loan This is especially powerful for tradespeople, small business owners, real estate agents, rideshare drivers, consultants, and freelancers — anyone whose tax returns simply don’t reflect their true financial strength. Why This Loan Is More Important Than Ever With traditional lenders tightening income guidelines and many bank-statement lenders scaling back programs, P&L loans have become one of the few remaining flexible qualifying options for self-employed borrowers. Having the right documentation — and preparing it correctly the first time — can mean the difference between an approval and a delay. That’s why working with a mortgage professional who understands these programs deeply is essential. Ready to Explore Your Options? Let’s Talk. Every self-employed borrower’s story is different, and your loan strategy should reflect that. If you’d like to see whether a P&L loan works for your situation — or if you want help gathering the right documentation — I’m here for you. 👉 Schedule a meeting with Garrick: https://www.freshhomeloan.com/contact-us I’ll walk you through the guidelines, help you avoid common mistakes, and show you the best path to approval. Garrick Werdmuller has been self-employed since the age of 29 and is the President and CEO of Fresh Home Loan Inc. , an independent mortgage brokerage serving the Bay Area and Central Valley. Garrick has helped hundreds of self-employed borrowers secure home loans — including many who were previously denied elsewhere. His mission is simple: make homeownership accessible for entrepreneurs and business owners. #SelfEmployedHomebuyer #PLLoans #AlternativeDocLoans #HomeLoanOptions #MortgageBroker #FreshHomeLoan #NonQMLoans #BusinessOwner #EntrepreneurLife #CaliforniaMortgage #RealEstateTips #HomeFinancing #FreshHomeLoan

Buying a home in California has never been more competitive, more dynamic, or more dependent on strong financing. Whether you’re a first-time homebuyer, moving up, or building wealth through real estate, the first and most important step is getting pre-approved . But not all pre-approvals are the same — and not all lenders approach the process with the same level of detail, transparency, or strategy. At Fresh Home Loan, we believe pre-approval isn’t just paperwork. It’s a blueprint for your financial future. Why Getting Pre-Approved Matters 1. You know your real numbers. Online calculators and quick quotes don’t tell the whole story. A real pre-approval evaluates income, credit, assets, property type, and guidelines across multiple lenders, giving you an accurate picture of payment and cash-to-close. 2. You make stronger offers. In competitive markets, sellers want certainty. A true pre-approval shows real estate agents and sellers that you are financially ready now — not “pre-qualified” in 60 seconds with a soft inquiry and guesses. 3. You avoid surprises. When you know your loan type, payment ranges, MI options, and total cash required, you shop with confidence — not stress. 4. You move faster. A strong pre-approval shortens closing timelines, reduces conditions, and helps you win in multiple-offer situations. Fresh Home Loan’s 5-Step Pre-Approval Process At Fresh Home Loan, we built our process around transparency, education, speed, and strategy — not pressure . STEP 1 — Strategy Call A short conversation to understand your goals, timeline, and the why behind your purchase. We want to know your story , not just your numbers. STEP 2 — Apply & Upload Documents You complete the loan application and securely upload income, asset, and identification documents through our technology platform. This allows us to begin the full underwriting review immediately. STEP 3 — Credit Report (Borrower-Paid) We run your tri-merge mortgage credit report , which is now an upfront, borrower-paid fee due to nationwide credit bureau cost increases. This report provides: Mortgage-specific credit scores Tradeline verification Fraud/OFAC checks Supplemental reporting required for underwriting This step ensures accuracy, prevents surprises, and allows us to deliver a true, fully vetted pre-approval . STEP 4 — Deep-Dive Loan Review We analyze your profile across multiple lenders — not just one. You see options for FHA, Conventional, Jumbo, ARM, Zero-Down, ITIN, Self-Employed, Investor/DSCR, and other programs. This is where we strategize your best path: Max qualifying Lower monthly payment Lower cash to close Buydown opportunities PMI vs. no-PMI structures Short-term vs. long-term planning Wealth-building strategy You’re not choosing a loan — you’re choosing the plan that works for your life. STEP 5 — Live Scenario Review We meet via phone or Zoom and go through your options line by line : ✔ Monthly payments ✔ APR ✔ Total cash to close ✔ Rate options ✔ Pros and cons of each program ✔ Short- and long-term strategies The goal is simple: Give you clarity, confidence, and control. Once everything is reviewed and verified, you receive your Fresh Home Loan Pre-Approval Letter :  Fully underwritten Fast Accurate Respected by real estate agents Backed by verified numbers — not guesses We then coordinate with your agent so your offers stand out and move fast. Ready to take the next step? Reach out at 510-282-5456 or apply now: https://www.freshhomeloan.com/apply-now

Buying a home has never required more clarity, strategy, or preparation. Whether you’re a first-time buyer, move-up family, or investor, the most important first step is getting fully pre-approved — not pre-qualified, not estimated, not “soft-checked,” but truly underwritten. At Fresh Home Loan, we treat the pre-approval as a financial blueprint , not a quick form. And as part of that process, there has been an important industry change buyers should understand: 📌 Why Credit Report Fees Have Increased — And Why Borrowers Now Pay Up Front Over the last few years, the mortgage industry has seen a dramatic rise in the cost of pulling credit reports. These increases did NOT come from lenders or brokers — they came from the credit bureaus and data providers who supply the reports. Here’s what borrowers should know: 1. Credit bureaus have significantly raised their prices The “Big Three” — Equifax, Experian, and TransUnion — have increased fees multiple times since 2022. Some increases have been as high as 40%–400% , depending on the provider and data bundle required to issue a mortgage loan. 2. Mortgage credit reports are different from regular consumer reports These reports include: ✔ Tri-merge data ✔ Fraud alerts ✔ OFAC checks ✔ Supplemental records ✔ Credit score models specific to mortgages This makes them more expensive to produce. 3. Lenders and brokers were previously absorbing these costs But with the recent increases, most lenders — retail and wholesale — have moved to a borrower-paid credit report model to keep overall loan fees lower and maintain competitive pricing. 4. Borrowers now pay the fee upfront to start the pre-approval This prevents unnecessary multiple pulls, helps control costs, and ensures the pre-approval process is accurate and compliant. What this means for buyers The upfront credit fee is not a junk fee , and it is not charged by Fresh Home Loan. It is simply the cost of the mortgage credit report — a required part of getting truly pre-approved. It also protects buyers by ensuring: No lender “double-pulls” without permission Clean, accurate information from the start A stronger, more credible pre-approval Faster underwriting and faster closings We can shop different lenders to get the best options for each client You’re paying for the quality of the data that helps determine your loan eligibility, loan type, and rate options. Why Getting Pre-Approved Matters More Than Ever 1. You get real numbers — not guesses. An accurate credit pull lets us calculate actual payments, cash-to-close, MI, DTI ratios, and loan eligibility across multiple lenders. 2. You make stronger offers. A clean, verified credit report gives real estate agents confidence and strengthens your offer in competitive situations. 3. You avoid delays and surprises. Nothing derails escrow faster than discovering missing tradelines, old debts, new late payments, or incorrect credit estimates. 4. You get a strategic mortgage plan. Credit determines loan type, price, MI options, buydown opportunities, and even property eligibility. Pre-approval is not just a form — it’s a strategy session. The Good News: Your Mortgage Credit Report Works for You Even though mortgage credit reports have become more expensive, there’s good news for buyers: ✔ Your credit report is valid for 90 days This means one report supports your entire pre-approval and allows you to shop for homes, write offers, and compare loan options for three full months without pulling credit again. ✔ You can use the same report across multiple lenders Because Fresh Home Loan is a true independent mortgage broker , we can use your single credit pull to shop dozens of lenders on your behalf — saving you from unnecessary multiple inquiries. ✔ It protects your pre-approval strength A verified, mortgage-grade report makes your pre-approval stronger, cleaner, and more competitive when writing offers. Agents trust it. Sellers trust it. Underwriters trust it. ✔ It reduces surprises later Getting accurate credit up-front prevents mid-escrow issues, delays, or deal-killers. It ensures your strategy, payment, and cash-to-close are real — not estimates. ✔ It’s the foundation of your financial plan Your mortgage credit report directly influences: Interest rate PMI strategy Loan type Debt-to-income ratio Loan eligibility Long-term options like refinancing It is the key piece of data that allows us to build a clear, custom homebuying plan designed just for you. Bottom Line The credit report may cost more today — but it gives you: 90 days of buying power A stronger pre-approval A cleaner, faster closing One pull to shop dozens of lenders A real financial strategy, not guesswork It is the first step toward clarity, confidence, and homeownership. Ready to take the next step? Reach out at 510-282-5456 or apply now: https://www.freshhomeloan.com/apply-now 

Generation Z—defined as individuals born between 1997 and 2012 —is entering homeownership earlier than expected and increasingly influencing the residential real estate market. Unlike previous generations, Gen Z is not waiting until they have a traditional 20% down payment saved. Instead, they are leveraging a combination of low-down-payment and zero-down financing options to get into homes sooner. Gen Z is the first generation to grow up fully immersed in technology. They are digital natives—accustomed to real-time information, online comparison shopping, and researching major decisions independently before engaging with professionals. Their approach to buying a home mirrors these behaviors. According to Redfin, in 2024 just over 26.1% of adult Gen Zers (ages 19–27) owned homes — essentially flat from the previous years. According to National Association of Realtors (NAR) data, Gen Zers aged 18–25 made up only 3% of home buyers in the U.S. in the referenced study Gen Z represented 13% of U.S. home-mortgage applications in 2024 (up from ~10% in 2023) per an article summarizing CoreLogic data. While Gen Z currently makes up roughly 3% of all home buyers, their mortgage-application share is already 13% as they edge into the market. They are coming of age. Key characteristics of Gen Z include: Digital Natives: First generation raised with the internet, smartphones, and social platforms from childhood. Diverse & Inclusive: The most racially and ethnically diverse generation in U.S. history. Financially Conservative: Values financial stability and sees homeownership as a foundation, not a finish line. Entrepreneurial: High engagement in gig-based income, side businesses, and self-employment. Research-Driven: Prefers to learn online (YouTube, TikTok, Google) before speaking with an expert. Homeownership Focused: More willing than Millennials to purchase a home early, even without 20% down. We have had the pleasure of helping quite a few Gen Z and very Young Gen Y homebuyers recently. It has been a lot of fun and very satisfying helping such young home buyers. Over the past few years with rates up from the lows of the Pandemic, we have seen fewer first-time home buyers in the past couple of years. It is refreshing to see they are coming back. Historically, younger buyers have been sidelined by the misconception that a 20% down payment is required to purchase a home. Gen Z is proving that outdated. The majority of Gen Z homebuyers are using: FHA financing with 3.5% down The FHA 5/1 ARM which carries a lower rate, and allows you to qualify for more. Conventional financing with 3% down Zero-down FHA programs (with no income limits) These programs are available for all generations and not just for first time homebuyer or Gen Z! These programs offer affordability and flexibility, allowing Gen Z to enter the market sooner and build equity sooner—rather than waiting years to accumulate a large down payment. What I like about these “kids” is they want true guidance. They are not looking for a lender to just quote a rate. They’re looking for a lender who will: Compare multiple financing strategies Show cash to close and payment differences Explain how to refinance later when rates improve This generation wants clarity and total cost transparency. Recently, we worked with a Gen Z couple in the Sacramento Area — both in their mid-twenties, with their first baby due in eight weeks. We structured a zero-down FHA purchase, negotiated closing credits, and helped them purchase a $475,000 home with just $16,000 total out of pocket. Another Gen Z buyer in Bakerfield, CA,— selected a strategy-focused loan structure. Using a 5/1 ARM, he secured a rate below 5%, kept his payment low, and closed with only $25,000 out of pocket on a property in a highly competitive market. It also increased his purchase power, allowing him to qualify for more home in the neighborhood he preferred. What We Do Differently: At Fresh Home Loan, we believe homeownership shouldn’t be complicated or intimidating. We exist to make the process accessible, strategic, and yes — “cool” at least “cooler” than it is now. Through education, transparency, and modern loan options, buyers gain clarity, confidence, and a plan. We don’t just pre-approve. We guide. We strategize. We execute. If you want a lender who will show you every available option, walk you through payment and cash-to-close, and build a financing plan that aligns with your goals and timeline. If you want a lender who will show you every available option, walk you through payment and cash-to-close, and build a financing plan that aligns with your goals and your timeline, then let’s talk. 📲 Call or Text: 510-282-5456 🌐 Apply: https://www.freshhomeloan.com/apply-now 📅 Schedule a consult: www.MeetWithGarrick.com Garrick Werdmuller President & CEO | Mortgage Broker Fresh Home Loan Inc. DRE 01368202 | NMLS 242952 Office: 510-282-5456 Email: garrick@freshhomeloan.com Website: www.FreshHomeLoan.com All loan approvals are conditional and not guaranteed and subject to lender review of all information. Loan is conditionally approved when lender has issued approval in writing, but until all conditions are met, loan cannot be funded. Specified rates and [products may not be available to all borrowers. Rates subject to change according to market conditions and agreed upon lock times set by borrower. Fresh Home Loan Inc. is an Equal Opportunity Mortgage Broker in California. This licensee is performing acts for which a real estate license is required. Fresh Home Loan, Inc. is licensed by the California Department of Real Estate #02137513 NMLS # 2124104

The real estate game is shifting—and fast. Big tech companies are pouring billions into vertical integration, trying to control the entire transaction from home search to financing. Mergers between property search platforms and digital lenders are making headlines, but here’s what no one is talking about: even with all that money, the top 10 lenders in the U.S. only control 17% of the mortgage market. That means 83% of the business is still handled by local agents, brokers, and mortgage professionals. There’s still plenty of business on the table—and Beast Mode Prospecting is how you grab it. At its core, Beast Mode isn’t about working harder. It’s about working smarter—by combining relationship-driven prospecting with the right tech stack. Your database and sphere of influence are your biggest untapped assets. These are the people who already know, like, and trust you—but only if you stay visible and valuable. Using tools like Covve to export and organize your contacts, you can plug into a CRM and start reaching out consistently using the “3 x 2” method: 3 contacts a day, 2 follow-ups per year. And when you layer in the FORD method (Family, Occupation, Recreation, Dreams), your conversations become meaningful, not salesy. But it doesn’t stop there. Beast Mode teaches you to build a referral partner network that generates consistent business—think CPAs, attorneys, investors, and business owners. Tools like LinkedIn Sales Navigator help you find them with surgical precision. And with a 12-week follow-up plan of value touches, check-ins, and personalized content, you can turn a cold connection into a warm source of referrals. Then there’s the AI layer. With predictive data tools, you can identify who’s most likely to move based on life events, online behavior, and equity position—before they even realize they’re ready. Platforms can help you target empty nesters, high-equity owners, and out-of-area landlords with relevant messaging. Combine that with AI-powered follow-up like LinkyBot.ai, and now you’ve got a system that nurtures leads automatically while you focus on conversions. One of the most overlooked opportunities? Open house lead capture. Paper sign-in sheets are dead. MoveTube offers a fully digital experience—visitors scan a QR code, enter their info, and receive a branded video follow-up on YouTube. You get notifications when they engage, and your seller sees you as a tech-forward pro. Fresh Home Loan even helps with flyers, listing trailers, and the drip campaigns to follow up. All of this is supported by the Beast Mode Tech Stack—CRM automation, dialers, email and text drips, video email tools, social ad funnels, and more. But remember, tools alone aren’t the magic. The magic happens when you combine tech with consistent prospecting. That’s where the wins happen. At Fresh Home Loan Inc., we’re more than a lender. We’re your marketing engine. We support agents with not just fast closings and competitive loan options, but also done-for-you listing content, social media posts, video walkthroughs, open house tools, and ongoing lead follow-up systems. Whether it’s a first-time buyer, a reverse mortgage, a bridge loan, or a fix-and-flip, we’ve got the products—and the partnership—to help you win. Bottom line? You don’t need to be Redfin, Rocket, or Zillow. You need the right system, the right message, and the discipline to show up. You can do everything they do—better. Right now. Let’s go get it. 📲 Schedule a strategy call or text Garrick at 510-282-5456 to activate your Beast Mode system.

When rates drop, many homeowners hear about a “no closing cost refinance.” It sounds like free money—but is it really? Let’s break it down. What Is a No Closing Cost Refinance? A no closing cost refinance allows you to refinance your mortgage using lender credits to pay for third-party closing costs. How is this done? Well, in markets where interest rates are heading down, homeowners who may have purchased or refinanced at a higher rate can refinance at a lower rate that has lender credits to cover the closing costs. We are also able to wrap the interest and other fees into the loan, so the borrower pays nothing out of pocket. Instead of paying thousands at closing, those costs are covered in one of two ways (and usually BOTH): Lender Credit – The lender gives you a higher interest rate and uses that extra margin to cover the costs. Rolled Into the Loan – The lender adds the closing costs into your new loan balance. 🏡 Mortgage Rates Are a Menu — Not One Number Most people think there’s just one mortgage rate — but really, rates are shown on a matrix (a pricing sheet lenders use). Each interest rate has a cost or credit attached to it. Higher Rate → Lender Credit (the lender gives you money to offset closing costs — this is how “no closing cost” refinances work). Lower Rate → You Pay Points (you pay extra upfront — called “discount points” — to buy the rate down and get a lower payment). 💵 Hypothetical Example — $400,000 Loan (Numbers below are for illustration only — not a rate quote or loan offer) Rate Option Upfront Cost / Credit What It Means 5.50% $0 (Par Pricing) The “standard” rate — no extra cost or lender credit. 5.75% 1% lender credit (≈$4,000 back). You get about $4,000 to help with closing costs, but pay a bit more each month. 5.25%. 1% cost (≈$4,000) You pay about $4,000 at closing to “buy down” and lower your monthly payment. 💡 Monthly Payment Impact (Approx.) 5.75% → about $133 more per month vs 5.25% 5.25% → about $133 less per month vs 5.75% 🧮 How People Use This Short-term or planning to refinance again → Pick the 5.75% “no-cost” option — you’re not out of cash and can refi if rates drop. Long-term home → Consider paying the 1% to drop the rate and save monthly. The Pros ✅ No big check to write at closing ✅ “Instant” monthly savings ✅ Great for homeowners who want quick savings, knowing if the market drops again, they can do another refinance The Cons ⚠️ Not the lowest market interest rate ⚠️ Loan balance can increase if costs are rolled in ⚠️ May not be the best long-term solution Who Should Consider It? Homeowners with interest rates about 1% or more above the current market. Borrowers who want lower monthly payments without spending money out of pocket. Anyone refinancing to drop mortgage insurance or adjust loan terms quickly. The Bottom Line “No closing cost” doesn’t mean free—it just means structured differently. The best refinance strategy depends on your financial goals, how long you’ll stay in your home, and the rate environment. 👉 Want to know if a no closing cost refinance makes sense for you? Let’s run the numbers together. 🎥 Watch on YouTube: https://www.youtube.com/watch?v=YMi7pNzKlcg 🎧 Listen on Spotify: https://open.spotify.com/episode/7giZSM4wIPZUQxLTXuK5CP Garrick Werdmuller Independent Mortgage Broker DRE BRKR 01368202 | NMLS 242952 📞 510.282.5456 | 📠 510.225.0382 ✉️ garrick@freshhomeloan.com 🌐 freshhomeloan.com 🏢 1151 Harbor Bay Parkway, Suite 136, Alameda, CA 94502 Socials: https://www.facebook.com/freshhomeloan/ https://www.instagram.com/garrickwerdmuller/ https://www.linkedin.com/in/garrick-werdmuller-b044253/ https://www.youtube.com/@FreshHomeLoan  #Refinance #Mortgage #RealEstate #MortgageBroker #HomeLoans #Realtor #MortgageLender #LoanOfficer #FirstTimeHomeBuyer #HomeLoan #Finance #MortgageRates #Investment #HomeBuyers #RealEstateAgent #Loans #NewHome #Loan #Home #DreamHome #Property #Mortgages #MortgageTips #HomeOwnership #Lender #Realtors #Lending #Purchase #HomeBuying #Broker