The $15,000 Community Opportunity Program (aka Homebuyers Advantage) is one of the strongest homebuyer assistance programs currently available in the Temecula Valley. Funded through the Community Reinvestment Act (CRA), the program offers eligible buyers either a $15,000 forgivable grant or a forgivable second trust deed, depending on the loan product selected. Starting October 01, 2026, it appears this is reverting back to $10,000 for the FHA Grant, but the $15k forgivable 2nd TD combined with both Conventional offerings has been extended to 12/31/2026..
Unlike many traditional down payment assistance (DPA) programs, this program generally offers market interest rates, rather than increasing the first mortgage interest rate to offset the assistance. That can make a significant difference over the life of a loan.
Let’s take a deeper look at each option.
Option One: FHA with a $15,000 Forgivable Grant
This option combines traditional FHA Financing with a $15,000 forgivable grant that is available at closing. This product only appears to be changing to $10,000 on October 01, 2026.
Credit Requirements
- Minimum 660 FICO Score
- Standard FHA automated underwriting approval (DU)
- Normal FHA credit guidelines apply
Debt-to-Income Ratios
- Standard FHA Desktop Underwriter (DU) guidelines
- Debt ratios vary based on the overall strength of the loan file
Income Limits
If purchasing within an eligible 50% or greater minority census tract, current income limits are generally:
- Up to $159,250 household income
- Temecula Valley
- Riverside County
- San Bernardino County
If the property is located within an eligible census tract and at least one borrower qualifies as a first-generation homebuyer, the household income limit increases to:
- Up to $213,000
Grant Funds May Be Used For
The $15,000 forgivable grant may generally be applied toward:
- Closing costs
- Prepaid property taxes and homeowners insurance
- FHA Upfront Mortgage Insurance Premium (UFMIP), when permitted by the program
- Interest rate buy-downs
Important: Borrowers must still provide FHA’s required 3.5% minimum down payment from eligible funds. Gift funds are allowed.
Option Two: Conventional Financing with 3% Down
This option combines a conventional loan with a forgivable second trust deed. This at $15k has been extended to 12/31/2026.
Credit Requirements
- 680+ FICO recommended for effective loan pricing
- Desktop Underwriter (DU) Approve/Eligible required
Debt Ratios
- Maximum 45% Total Debt-to-Income Ratio
Income Limits
Purchasing within an eligible 50%+ minority census tract:
- Household income up to $159,250
If combined with first-generation homebuyer eligibility:
- Household income up to $213,000
Forgivable Second Trust Deed
Up to $15,000 may be available through a forgivable second mortgage. This has been extended at $15,000 thru 12/31/2026.
After five years, the second trust deed is generally forgiven if all program requirements continue to be satisfied.
Funds may typically be used for:
- Down payment
- Closing costs
- Prepaid taxes and insurance
- Single Premium Mortgage Insurance (SPMI) buyout
- Interest rate buy-down
- Realtor commissions, when permitted by the program
Option Three: 100% Conventional Financing with No Monthly Mortgage Insurance
This may be the most attractive option for buyers who qualify. This at $15,000 has been extended to 12/31/2026.
Credit Requirements
- 680+ FICO
- Desktop Underwriter (DU) Approve/Eligible
Debt Ratios
- Maximum 45% Total Debt-to-Income Ratio
Eligibility
To qualify, borrowers generally must meet one of these for the $159,000 income limit or both for the $213,000 income limit:
- Eligible 50%+ minority census tract
- First-generation homebuyer requirements
Forgivable Second Trust Deed
This option may also be paired with the forgivable second mortgage, which can typically be used toward:
- Closing costs
- Prepaid expenses
- Interest rate buy-down
- Realtor commissions
One of the biggest advantages of this option is 100% financing with no monthly mortgage insurance, creating an exceptionally affordable monthly payment for qualified borrowers.
Additional Things to Know
A common misconception is that you must be a first-time homebuyer.
Not necessarily.
Borrowers who are not first-time homebuyers may still qualify under certain program options. However, income limits are typically much lower, and you generally cannot own another home at the time of closing.
Because this program is funded through the Community Reinvestment Act (CRA), available funds are limited. Once annual allocations are exhausted, borrowers must wait for additional funding or future program updates.
Another major advantage is pricing.
Unlike many traditional down payment assistance programs that increase the interest rate to help offset the assistance being provided, the Homebuyer Advantage Program generally offers competitive market interest rates, allowing buyers to receive meaningful assistance without sacrificing long-term affordability or payment.
Not every neighborhood in the Temecula Valley qualifies. Some communities do not meet the required census tract characteristics because they fall below the program’s minority concentration threshold. Even so, it’s absolutely worth checking whether a property qualifies before eliminating this option. In many cases, a seller is willing to work with a buyer using grant funds when expectations and timelines are established upfront.
October 01, 2026, the FHA Product Grant is reverting back to $10,000 in grant funds being offered. The two Conventional forgivable 2nd TD have been extended at $15,000 in assistance thru 12/31/2026.
Final Thoughts
Whether you’re purchasing your very first home or looking to re-enter the housing market after a life event, the Homebuyer Advantage Program deserves a serious look. With potential grant assistance, forgivable second mortgages, market-rate financing, and flexible loan options, it has become one of the strongest CRA-backed homeownership programs available.
With 32+ years of overall mortgage experience and more than 29 years of experience helping buyers navigate down payment assistance, CalHFA programs, CRA Financing, and first-time homebuyer opportunities, The Santos Team at Arbor Financial Group is here to help you compare your options, answer your questions, and determine which program best fits your financial goals. A short consultation today could uncover opportunities you didn’t know were available.
