Navigating Home Ownership: Your Essential Bay Area Down Payment Cheat Sheet

Buying a home is a significant milestone, and understanding your down payment options is crucial. “The Realtor® Home Buyers Down Payment Cheat Sheet” simplifies this process by outlining various loan types and their key features. Let's dive into some of the options available: 1. FHA - Traditional Down Payment: 3.5% Max Seller Credit: 6% Best For: Flexible underwriting, higher debt-to-income ratios, and lower credit profiles. 2. VA Loan Down Payment: 0% Max Seller Credit: 4% Best For: Veterans & eligible service members, offering no mortgage insurance and typically lower rates than conventional loans. 3. Conventional 5% Down (Traditional) Down Payment: 5% Max Seller Credit: 3% Best For: Fast closes, competitive rates, and low mortgage insurance. 4. Zero Down (FHA 1st + Assistance) Down Payment: 0% Max Seller Credit: 6% Best For: Zero down purchase, no income restrictions, and follows FHA guidelines. 5. FHA 5/1 ARM Down Payment: 3.5% Max Seller Credit: 6% Best For: A lower starting rate, helping buyers qualify for more home, and a strong payment strategy tool. 6. Bank Statement Loan Down Payment: 10% Max Seller Credit: 3% if < 20% down, 6% if ≥ 20% down Best For: Self-employed borrowers, those with non-traditional income, or when conventional loans don't work. 7. Conventional HomeOne Down Payment: 3% Max Seller Credit: 3% Best For: Lower mortgage insurance rates, no income limits, and no geographic/area restrictions. 8. 3% Down Conventional HomeReady Down Payment: 3% Max Seller Credit: 3% Best For: Lower mortgage insurance, no first-time buyer requirement, and flexible income & occupancy options. 9. CalHFA Down Payment: 103% Financing with Down Payment Assistance Max Seller Credit: Up to 6% Best For: First-time homebuyers, those needing little to no money out of pocket, and state-backed assistance programs. 

What Does the Proposed $200 Billion Mortgage-Backed Securities Purchase Mean for Mortgage Rates? There’s been recent discussion about a potential $200 billion purchase of mortgage-backed securities (MBS) directed through Fannie Mae and Freddie Mac. If you’re wondering what that actually means — and whether it will lower mortgage rates — here’s the straightforward breakdown. First, What Are Mortgage-Backed Securities? Mortgage-backed securities are bonds made up of pools of home loans. When lenders originate mortgages, those loans are often bundled together and sold to investors as MBS. Mortgage rates are directly tied to the performance of these securities. When demand for MBS increases: Prices rise Yields fall Mortgage rates can move lower So when you hear about a large government-directed MBS purchase, the goal is simple: increase demand and help ease pressure on mortgage rates. Is $200 Billion a Big Deal? Yes — and no. Yes, because $200 billion is a meaningful amount of capital. No, because the total U.S. mortgage-backed securities market is measured in trillions of dollars . Compared to past Federal Reserve quantitative easing programs, this is modest in scale. This is not a “flip-the-switch” moment for rates. Will Mortgage Rates Drop? Potentially — but several factors determine the real impact: Execution speed If purchases happen quickly, markets may respond more noticeably. Treasury yields Mortgage rates track the 10-year Treasury. If Treasury yields rise due to inflation concerns, that can offset MBS support. Inflation data Persistent inflation keeps upward pressure on rates. Market confidence Bond markets react not just to policy, but to economic sentiment. Bottom line: this move could help stabilize rates or create modest downward pressure — but it’s only one piece of a much larger puzzle. What This Means for Buyers and Sellers For buyers: Even small rate improvements can increase purchasing power. Strategy matters more than waiting for headlines. Seller credits and buydowns may still outperform rate speculation. For sellers: Lower rate headlines can increase buyer confidence. Activity may pick up if markets interpret this as supportive. Lower rates turn into appreciation with market activity such as over bidding. The Bigger Picture: Rates Are Only One Variable Housing affordability is driven by: Inventory levels Wage growth Consumer confidence Credit standards Regional supply constraints In markets like the Bay Area and Central Valley, inventory remains a critical driver — sometimes more than rate movement. Final Take A $200 billion MBS purchase is supportive for mortgage markets — but it’s not a guarantee of dramatically lower rates. Smart financing, creative structuring, and strong negotiation strategies remain the real advantage. If you’d like to understand how current bond market movements affect your specific buying power — let’s run the numbers. Garrick Werdmuller President & CEO Fresh Home Loan Inc. DRE 01368202 | NMLS 242952 For more information, give me a call at 510-282-5456 or visit: https://freshhomeloan.com/schedule-a-meeting/ 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 #MortgageRates #FreshHomeLoan #RealEstateMarket #HomeBuying #HousingMarket #MortgageNews #InterestRates #HomeLoans #MortgageTips #RealEstateFinance #Homebuyers #HousingAffordability #MarketUpdate #MortgageBackedSecurities #RealEstateStrategy #FirstTimeHomebuyer #CaliforniaRealEstate #FinancialEducation #Homeownership

If you’re trying to buy a home in California and down payment is the biggest hurdle, the California Housing Finance Agency (CalHFA) Dream For All Shared Appreciation Loan Program may be one of the most powerful opportunities available. Fresh Home Loan Inc., led by Independent Mortgage Broker Garrick Werdmuller (DRE #01368202 | NMLS #242952) , has released a comprehensive preparation guide to help California homebuyers position themselves for the next round of funding under the California Housing Finance Agency (CalHFA) Dream For All Shared Appreciation Loan Program. To apply visit: https://www.freshhomeloan.com/apply-now With affordability remaining one of the most pressing challenges across California, the Dream For All Program has generated significant attention by offering down payment assistance in exchange for a share of future appreciation. Previous funding rounds were depleted quickly, highlighting the importance of preparation and strategic financial positioning. “The Dream for All Program gets a lot of attention and hype. This is a great program; however, buyers should know it is an equity share and it is a lottery with limited funds and a short window. It’s a great opportunity to take advantage of it but it should deter a home buyer from getting a home if you don’t win the lottery. “says Garrick Werdmuller, President and CEO of Fresh Home Loan. How the Shared Appreciation Works You Receive Down Payment Assistance CalHFA provides a second loan that helps cover your down payment (and sometimes closing costs). No monthly payments Deferred repayment Recorded as a lien on the property You Repay When a Trigger Event Happens Repayment occurs when you: Sell the home Refinance the first mortgage Pay off the loan Transfer ownership At that time, you repay: The original assistance amount PLUS a percentage of the home’s appreciation What Percentage Do They Take? The percentage of appreciation owed depends on your income level at the time you received the assistance. Historically: Lower-income borrowers → Lower share of appreciation Higher-income borrowers → Higher share of appreciation (Exact percentages depend on the program year and funding round.) 📊 Example Scenario Let’s say: Purchase price: $500,000 Assistance received: $100,000 You sell later for: $650,000 Appreciation: $150,000 If your equity share percentage was 20%, you would repay: $100,000 (original assistance) 20% of $150,000 ($30,000) = $130,000 total repayment You keep the remaining appreciation. Understanding Shared Appreciation With Dream For All, assistance is repaid when you: Sell the property Refinance Transfer ownership Repayment includes the original assistance amount plus a share of the home’s appreciation. Understanding how shared appreciation works is critical before committing to the program. Strategic planning ensures the program fits your long-term goals. Who Is the Dream For All Program Designed For? The program is generally intended for: First-time homebuyers Moderate-income California residents Buyers who meet CalHFA income limits Borrowers completing required homebuyer education Eligibility requirements and income limits vary by county, so reviewing guidelines early is key. How to Prepare for Dream For All Funding Here’s what serious buyers should be doing right now: Optimize Your Credit Profile Your credit score directly impacts loan approval and structure. Review credit reports Pay down revolving debt Avoid new credit inquiries Dispute inaccuracies Even small improvements can strengthen your file. Organize Income Documentation Prepare: Two years of tax returns (if applicable) W-2s or 1099s Recent pay stubs Bank statements Asset documentation Self-employed buyers should prepare profit-and-loss statements and business bank records. Complete Required Homebuyer Education CalHFA typically requires completion of a certified homebuyer education course. Completing this early avoids delays when funding opens. Secure a Strong Pre-Approval Not all pre-approvals are equal. A structured, document-reviewed pre-approval strengthens your offer when competing in a fast-moving market. Apply here: https://www.freshhomeloan.com/apply-now At Fresh Home Loan, we focus on: Clean file structuring Upfront documentation review Accurate DTI calculation Clear purchase strategy Why Preparation Matters in California’s Housing Market California remains one of the most competitive real estate markets in the country. When assistance programs open: Buyers rush to apply Inventory tightens Sellers favor clean, well-structured offers Preparation reduces stress, shortens timelines, and increases negotiating strength. Take the Next Step Toward Homeownership If you’re serious about buying in California, preparation starts now. Fresh Home Loan Inc. serves clients across the Bay Area and Central Valley, providing strategic mortgage planning and structured pre-approvals designed for competitive markets. Garrick Werdmuller Independent Mortgage Broker DRE #01368202 | NMLS #242952 📞 510-282-5456 🌐 https://www.freshhomeloan.com For more information give me a call at 510.282.5456 or visit: https://freshhomeloan.com/schedule-a-meeting/ 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 # FreshHomeLoan # DreamForAll #CalHFA #CaliforniaHomebuyers #DownPaymentAssistance #FirstTimeHomeBuyer #HomeownershipGoals #MortgageBrokerCA #GarrickWerdmuller #CaliforniaRealEstate #BuyAHomeCA #HomeBuyerTips #MortgagePlanning #RealEstateFinance #BayAreaHomes  #HomeLoanHel p

Bakersfield, CA — Fresh Home Loan Inc. is officially expanding into Bakersfield, bringing a new level of flexibility, strategy, and modern lending solutions to homebuyers, investors, and self-employed borrowers across the 661. Led by Garrick Werdmuller , Independent Mortgage Broker (DRE BRKR 01368202 | NMLS 242952), Fresh Home Loan specializes in helping borrowers navigate today’s challenging housing market with creative financing options that go beyond traditional bank limitations. “With affordability, stricter underwriting, and changing buyer profiles, today’s market requires smarter loan structure — not one-size-fits-all lending,” said Werdmuller. “Our goal in Bakersfield is to help buyers and agents win with strategy, not stress.” Expanded Lending Options Now Available in Bakersfield Include: Zero Down Programs Options available with no income caps and no first-time homebuyer restrictions, allowing more buyers to compete in a competitive market. Private Money Lending Designed for investors and buyers who need speed, flexibility, or solutions for non-traditional scenarios. Bank Statement Loans for the Self-Employed Qualifying based on cash flow rather than W-2 income, ideal for business owners, entrepreneurs, and independent contractors. Fresh Home Loan’s approach focuses on clean execution, strong pre-approvals, and offer structure that helps buyers stand out — especially in multiple-offer environments. Now Serving Bakersfield Garrick Werdmuller Independent Mortgage Broker DRE BRKR 01368202 | NMLS 242952 📞 661-998-9588 ✉️ garrick@freshhomeloan.com 🌐 freshhomeloan.com 🏢 4900 California Ave, Suite 210-B, Bakersfield, CA 93309 For more information, give me a call or visit: https://freshhomeloan.com/schedule-a-meeting/ 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 #NowInThe661 #BakersfieldRealEstate #FreshHomeLoan #MortgageBroker #661Life #HomeBuying2026

Unlock up to 89.99% of Home Equity — No Mortgage Insurance Required

CalHFA Loan Programs: A Simple Guide for California 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