Buying your first home is one of life’s biggest milestones and coming up with the down payment is often the biggest hurdle. CNBC in late 2024 wrote that more than half of the population couldn’t afford to buy a home because they didn’t have the down payment + closing costs. Fortunately, a $15,000 FLP Program may help eligible buyers purchase a home in parts of the Temecula Valley. I know the common question, “What strings are attached?” If you qualify for the program, this is real and is not a gimmick. Let’s take a quick tour of how it works and could apply to you.
If you’re shopping in Harveston in Temecula, many neighborhoods in Murrieta, most of Lake Elsinore, or many areas of Menifee, this program may be available depending on the property’s location and your eligibility.
What Is the FLP Program
The program is made possible through Community Reinvestment Act (CRA) funding.
The Community Reinvestment Act, enacted by Congress in 1977, encourages banks to help meet the credit needs of the communities they serve, including low-to moderate-income neighborhoods. Many participating lenders offer special mortgage products, grants, or forgivable assistance programs designed to increase homeownership opportunities in qualifying census tracts.
Because funding comes from participating financial institutions, these programs are available only while funds last and may change without notice.
Three Ways the Program Can Help
Depending on the loan program selected, eligible buyers may qualify for one of the following:
Option 1: FHA with a $15,000 Forgivable Grant
- Traditional FHA Financing
- $15,000 grant to assist with eligible homeownership costs
- Grant is forgivable under program guidelines
Option 2: Conventional 3% Down Program
- Conventional Financing with as little as 3% down
- Assistance provided as a second mortgage
- The second mortgage is forgiven over a five-year period if program requirements are met
Option 3: 100% Financing with No Monthly Mortgage Insurance – Community Opportunity Mortgage
- No down payment required for qualified borrowers
- No monthly mortgage insurance
- Forgivable second mortgage with a five-year forgiveness schedule
The grant applies to FHA only and can be used towards non-recurring & recurring closing costs, paying off MIP, or rate buy-down On FHA, the grant cannot be used for required down payment or realtor commissions. For Option 2 Conventional, the 2nd TD can be used towards down payment, non-recurring & recurring closing costs, interest rate buy-down, can use to buy-out single premium MI, and it can be used towards realtor commissions. Option 3 or the 100% Conventional with no mi 2nd TD can be used towards non-recurring & recurring closing costs, interest rate buy-down, and can be used towards realtor commissions.
Standard Program Requirements
Most borrowers must meet the following basic guidelines:
- Does not have to be a First Time Homebuyer (generally someone who has not owned a primary residence within the past three years). If they are not a First Time Homebuyer, must meet income restrictions and not own a home at time of closing
- Purchase a home in an eligible community, including many neighborhoods that are 50% or greater minority census tracts, as defined by the program
- Meet minimum credit score requirements
- Meet household income limits
- Complete an approved first-time homebuyer education course
- Purchase a one-year home warranty
- Qualify using standard mortgage underwriting guidelines
Enhanced Program Requirements
Some versions of the program offer additional benefits when:
- All above standard eligibility requirements are met, and
- At least one borrower qualifies as a first-generation homebuyer under the program’s specific definition
Because eligibility definitions can vary, we’ll review your family history and documentation during the pre-approval process.
Additional Things to Know
Before choosing this program, here are a few important facts:
- Funding is available only until allocated program funds are exhausted.
- Our branch has successfully closed several of these loans.
- Typical closing time is approximately 40 days.
- Documentation requirements are more detailed than a standard mortgage.
- Interest rates are generally competitive with current market rates and are not significantly increased simply because grant assistance is being provided.
Final Thoughts
For eligible first-time homebuyers, the $15,000 Homebuyer Advantage Program can significantly reduce the upfront cost of purchasing a home without dramatically increasing the cost of financing. And potentially assisting without the need of repaying the assistance. As of now, this program will be reduced to $10k from $15k for new loans after October 01, 2026.
If you’re considering buying in Harveston, Murrieta, Lake Elsinore, Menifee, or another qualifying area in the Temecula Valley, this program may be worth exploring. We’ll help determine whether the property qualifies, review income and credit requirements, and identify which assistance option best fits your homeownership goals.
