Over the last couple of years, the percentage of Californians, able to afford a home has decreased to 23.5%. That means 76.5% of the state can’t qualify to buy a home.

Fortunately there are 3 loan programs which will help resolve that looming problem.

There are many reasons for this high percentage of golden state residents who can’t qualify.

Some of the reasons why there is an crisis are as follows:

1. Lack of employment

2. Low wages in general

2. Low wages after reemployment

3. Massive School Debts

4. No down payment saved up

Three of the best loan programs out that address’s this are as follows

A. 3% Down Payment Mortgage Fannie Mae. No PMI (1st Time Buyers only)

B. 0% Down Payment Mortgage for Veterans utilizing VA and Cal Vet financing.

C. 3.5% Down Payment Mortgage FHA for anybody else who can qualify.

The first program above which features a 3% down payment follows all Fannie Mae guidelines for qualifying. It is strictly for 1st time buyers and is unique in that it has no requirement for private mortgage insurance. The maximum loan amount is $417,000.

The second program is 0% down and is for veterans only. This is one of the best loans in America right now. It’s pretty easy to qualify and the maximum loan amount is $625,000. That’s enough to get a “lot” of house, if not a mansion in some areas of California.

The third program is my favorite, FHA. These loans require a minimum of 3.5% and has a maximum loan amount of $625,000. One’s credit doesn’t need to be perfect and the qualifying is not too difficult. The government has lowered the monthly mortgage insurance premiums so that these type loan will be more affordable.

The great news on this FHA loan is that all of the down payment can be a gift from some one like a family member, coworker or friend.

In addition, this FHA loan can also be used for a mortgage if you had a bankruptcy, short sale or foreclosure in the last 3-6 years in contrast to the 7 year requirement set forth for conventional loans.

Granted not everyone will qualify for these 3 programs. However, many of the 76.5% who can’t afford a home using conventional financing, could afford a home if they investigated these programs and simply got pre-qualified. It only takes between 60-120 minutes to get qualified if you have your bank statements and tax returns handy.

The really exciting part to all of this is that there are multiple agencies which will even give you your entire down payment if that is all thats holding you back from qualifying.

In summary the affordability crisis could be mitigated if more buyers applied for these programs and if more real estate agents became knowledgeable about these low down payment programs and the potential down payment assistance opportunities. By the way, who do you know who could benefit from these really awesome programs?