Current down payment assistance guidelines, updated from one source.
The snapshot below is not typed onto this page — it is pulled from one down payment assistance guideline source and refreshed when that source changes, so Montebello, CA always shows the options in force.
Of the purchase price
Measured on the purchase price or the appraised value, whichever is lower; the largest option covers the down payment and reaches closing costs, and the smaller options cover the 3.5% FHA minimum, in whole or, on the lowest tier, in part.
Covers the FHA down payment, in whole or in part
The FHA minimum down payment is 3.5%, and this option covers it in whole or, on its lower tier, in part with nothing to pay back — no lien, no payment, no interest — for buyers at or below the area income limit or in a qualifying category.
On the forgivable and repayable options
The forgivable and repayable options have no income limit at all — one of the biggest advantages of this program. Only the nothing-to-repay option asks for income at or below 140% of the area median, or a qualifying category.
Credit score to start
This is the lowest score that opens an option here — the nothing-to-repay option; the forgivable second liens start a little higher and the repayable options higher still, so a stronger score opens more choices.
| Option | Assistance | What you repay | Credit · mortgage · units |
|---|---|---|---|
| Grant-style assistance — nothing to repay | 2% or 3.5% of the price | Nothing — released at closing | 620+ · FHA 203(b), FHA repair escrow, FHA Limited 203(k), FHA Standard 203(k) · 1–4 units |
| Forgivable second lien — three-year | 3.5% of the price | Nothing after 36 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Forgivable second lien — five-year | 3.5% of the price | Nothing after 60 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Repayable second lien — thirty-year amortization, ten-year balloon | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Closing-cost repayable second lien | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b) · 1–2 units |
| Refinance-cost second lien (repayable) | 1% to 3.5% of the balance | Second lien, repaid | 660+ · FHA 203(b) · 1–4 units |
Current down payment assistance snapshot · updated September 7, 2026 · six options offered in California · no option requires a first-time buyer · no option combines with another assistance program · owner-occupied primary residences only.
Down payment assistance options are consumer mortgage programs arranged through select wholesale lenders, licensed in sixteen states, paired with FHA, USDA, or HUD-184 first liens. Assistance is stated as a percentage of price or value, never as a dollar figure a specific borrower would receive; the forgivable and repayable options are second liens with their own disclosures. Eligibility depends on the first lien’s approval, the option’s rules, the property, and full underwriting, subject to lender program eligibility. The calculator’s rate is an editable market benchmark, not a quote, and its payment is an illustrative estimate; no fee or lender identity appears on this page. Lendmire is a mortgage broker and never the lender, and is not affiliated with or acting on behalf of FHA, VA, USDA, HUD, or the federal government. Lendmire, LLC — NMLS #2371349. Equal Housing Opportunity.
What down payment assistance is — and how the options differ.
For Montebello, CA buyers, the first-time home buyer programs come down to three parts: the first lien carries most of the price, the assistance covers the minimum investment, and the shape of the assistance — nothing to repay, forgivable, or repayable — decides what it costs to carry.
For the program overview, see Lendmire’s down payment assistance program, or the statewide guide at Down Payment Assistance in California.
Assistance covers the FHA down payment
An FHA purchase asks for a minimum investment from the buyer; the assistance covers it, measured as a percentage of the lesser of price or value, and the largest option carries a further share for closing costs and prepaids.
Four shapes: grant, forgivable, repayable, refinance
Nothing to repay, forgiven over time, or repaid with a balloon: the three purchase shapes in Montebello, CA cover the same minimum investment and differ in what the buyer owes afterward, and a fourth, the refinance-cost option, serves an existing FHA loan.
Credit floors, mortgage programs, and unit counts
A Montebello file is placed by three things — the credit tier, the first-lien program, and the property — and the options table on this page shows the floor, the first liens, and the unit limit for every option offered in California.
Eligibility without a first-time-buyer rule
A Montebello buyer who has owned before is eligible; the second-lien options carry no income limit and no first-time-buyer rule, and the nothing-to-repay option opens on any one of four categories.
This is the whole test: the price sets the minimum investment, the option covers it, and the larger option leaves room for closing costs. The tool below applies it to your numbers and adds the FHA payment estimate.
Where Montebello’s first-time and moderate-income buyers shop — and how the assistance fits.
The share of Montebello, CA households that rent, the median home value, and the median household income together sketch the gap the assistance closes for a first purchase.
Read the figures as backdrop. The renter share says how many households the program could serve; the median value says how far the minimum investment sits from a typical price; the two together describe where the program closes most files.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Montebello submarkets, distinct property rules.
The small-city market around Montebello splits into distinct pockets; a lender underwrites the home in front of it, but the pocket sets the expectations.
USDA-eligible areas
Where a property near Montebello sits in a USDA-eligible area, the USDA first lien and the forgivable or ten-year repayable options fit together, keeping cash to close near zero for buyers who qualify. Median gross rent in Montebello is about $1,827 a month — the payment many renters already carry.
Small multi-unit homes, owner-occupied
In Montebello, owner-occupied small multi-unit buildings qualify for assistance when the buyer lives in one unit, up to four units on a purchase; the unit count decides which option applies. The median owner-occupied home value in Montebello runs near $697,900 on the latest Census estimate.
Manufactured homes on owned land
Manufactured housing on owned land is common around Montebello, and the program accepts it: the nothing-to-repay option takes single-width homes, the second-lien options double-width only, and the land must be owned rather than leased. Montebello itself counts a population near 61K.
New construction
New construction in and around Montebello works with the program; the appraisal and the builder’s timeline set the pace, and the assistance closes with the first lien. On a home at Montebello’s median value, the FHA minimum investment comes to about $24,400 — the figure the assistance is built to cover.
Homes that need work
In Montebello, a buyer can take on a fixer with the assistance attached to a limited renovation loan or, on the nothing-to-repay option, a standard one, so the down payment and the repair budget are settled in one transaction. Median household income in Montebello sits near $79,971 on the latest Census estimate.
Established neighborhoods
In Montebello, a first home in an older neighborhood pairs with the program on an FHA first lien, and the assistance covers the down payment the buyer would otherwise have to save. About 54% of Montebello’s households rent — roughly 10,640 renter households, the pool the program exists for.
Submarket descriptions are general market context; the first lien’s approval, the option’s rules, and full underwriting decide every figure in a file.
Four ways Montebello buyers put down payment assistance to work.
From a first home to an FHA refinance, down payment assistance in Montebello, CA solves a specific set of problems, and the cards below take up the ones that come up most.
Pair the assistance with a USDA or HUD-184 mortgage
Where the first lien is USDA or HUD-184, the second-lien assistance options carry the file in Montebello, forgivable or repayable by the buyer’s choice and credit profile.
Cover closing costs too on the larger option
A Montebello buyer who needs more than the minimum investment uses the repayable option that covers down payment, closing costs, and prepaid items, including costs paid outside closing.
Buy a small multi-unit home and live in one unit
House-hacking in Montebello, CA pairs with the program when the buyer occupies a unit; the unit count decides which option applies, and the first lien carries the building.
Buy a home that needs work with a renovation mortgage
Renovation purchases in Montebello, CA qualify for the assistance on the price before repairs, so the down payment help and the repair budget close together at one table.
Size the assistance on a Montebello price before requesting a quote.
This tool applies the program to a Montebello scenario: the price sets the minimum investment, the option and your cash set the down payment, and the FHA loan, mortgage insurance, and payment follow at the benchmark rate shown. Every field is editable; the rate is a market reference, not a quote.
Montebello FHA payment with assistance
Seeded from Montebello’s home values; every field is editable, and the estimate updates as you change the price, the option, your cash, or the rate.
Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.
Illustrative starting assumptions: a $600,000 price held below Montebello’s median owner-occupied home value, where an FHA first lien is realistic, the strongest assistance option offered in California applied against the FHA minimum investment, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for California (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; a repayable second lien adds its own payment, which is not shown here. Consumer mortgage lending licensed in sixteen states. Lendmire is not affiliated with or acting on behalf of FHA, USDA, HUD, or the federal government.
Same buyer, three very different closings.
The right structure for a Montebello, CA buyer depends on savings, credit, the first lien, and whether the help needs to reach closing costs.
Assistance on an FHA loan, your own down payment, or assistance on a USDA or HUD-184 loan.
The structure for a Montebello buyer who qualifies for the payment but not the cash to close — the help is sized on the price and the option decides what, if anything, is owed afterward.
Paying the minimum investment yourself keeps the closing simplest — no second lien, no category, no course; the trade is the months or years of saving that the assistance replaces. For the first lien itself, see Lendmire’s FHA loan program.
On a USDA or HUD-184 first lien in Montebello, CA the assistance is forgivable or the ten-year repayable kind; the separate closing-cost option is FHA only. For the USDA first lien, see the USDA loan program.
If the payment fits but the cash to close does not, down payment assistance is the structure; if the cash is there, the plain purchase; if the property is USDA-eligible, the USDA first lien with assistance for costs.
What to prepare for a Montebello scenario review.
The documents a lender reads first on an assistance file.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the mortgage, the assistance option, the property, and the eligibility category. Nothing here is legal or tax advice.
Local details that can change the loan.
A down payment assistance file in Montebello, CA is won or lost on details a plain purchase never meets: the eligibility category, the forgiveness clock, the balloon on the repayable option, the county loan limit, the property type.
Use these checks to keep the Montebello file clean and fundable.
A clean Montebello file starts with the option chosen, the first lien matched to the property, and the homebuyer education course completed where it is required.
- Know the option: read the second lien as the loan it is.
- Confirm the category: settle which category applies before the application is signed.
- Consider a blended score: check whether the higher earner has the higher score.
The option decides what you owe afterward
The same minimum investment can be covered three ways on a purchase in Montebello, CA, and the difference is entirely in what happens after closing: nothing, nothing if the first lien stays current, or a second loan that comes due; the options table shows what is offered.
The eligibility category for the nothing-to-repay option
The nothing-to-repay option opens on any one of four categories — household income at or below the area limit, a community-service occupation, a first purchase, or a property in an underserved census tract — plus a homebuyer education course; the second-lien options need none of these.
Blended scores for two-borrower files
A Montebello, CA couple where one score is strong and the other is not may reach an option through the blended score, which applies only when the primary wage earner also holds the higher score and the file carries an automated approval; there is no manual underwriting on a blended file.
Property type and unit count select the option
The property itself can move a Montebello, CA file: a fourplex, a single-width manufactured home, or an unapproved condominium project each changes which option can attach, so the address is read before the option is promised.
The balloon on the repayable option
The repayable second lien amortizes over thirty years but comes due in the tenth year; it carries interest and a monthly payment, its own loan number, and a balloon disclosure. It is the option that reaches closing costs, and it is a loan.
From a Montebello pre-approval to keys with the assistance in place.
The path from a Montebello pre-approval to keys with the assistance in place runs through the option first and the paperwork second.
Pick the option
The first step is the option: which ones the credit opens, which the first lien allows, and which costs the least to carry for a Montebello, CA buyer — settled before anything is ordered.
Get the mortgage approved
Lendmire packages the Montebello file for the first lien first, because the assistance follows its approval; the option’s floor and the first lien’s rules both have to clear.
Clear the property
The property side of a Montebello, CA file is where the option can change: unit count, project approval, and the loan limit are confirmed before the closing is scheduled.
Close both loans together
Final underwriting reads the whole Montebello, CA file against the first lien’s rules and the option’s; the loan funds with the assistance in place and the second lien, where there is one, recorded behind it.
A brokerage that pairs the assistance to the loan.
Down payment assistance is where a generalist stumbles: the options differ by first lien, by credit tier, by unit count, and by state, and the wholesale programs that carry them competently are a short list.
The option, matched to the buyer
Lendmire reads the options offered in California against a Montebello buyer’s credit, first lien, property, and category before anything is ordered, and names the fit by cost to carry.
The mortgage, matched to the property
FHA, USDA, or HUD-184 is chosen with the Montebello property — its address, its unit count, its type — so the assistance option that pairs with it is the one that attaches.
The right wholesale program
Assistance programs differ across wholesale lenders in what they offer and where; Lendmire places a Montebello, CA file where its credit, its first lien, and its property read best, subject to lender program eligibility.
Trusted by first-time buyers & families alike.
Montebello down payment assistance FAQs
The questions a Montebello, CA buyer asks before requesting an assistance review, answered plainly.
Do I have to be a first-time homebuyer?
No option requires it. A Montebello buyer who has owned before qualifies for the second-lien options on credit, mortgage, and property alone, and for the nothing-to-repay option through any of the other categories.
Is there an income limit?
A Montebello buyer above the area income limit still reaches the nothing-to-repay option through an occupation, a first purchase, or the tract, and reaches the second-lien options regardless of income.
What first-time home buyer programs are available in Montebello?
Four shapes paired with a government mortgage: a nothing-to-repay option released at closing; forgivable second liens with no interest and no payment, released after an on-time payment period; a repayable second lien with a balloon that also reaches closing costs and prepaids; and a refinance-cost option for an existing FHA loan. The options table on this page shows what is offered in California.
Do I have to pay the assistance back?
It depends on the shape a Montebello, CA buyer takes. Two carry nothing to repay: the nothing-to-repay option where it is offered, and the forgivable second liens, released after the on-time payment period. The repayable options are loans, paid back with interest and a balloon.
What credit score do I need?
It depends on the option. The lowest floor belongs to the nothing-to-repay option; the second-lien options start higher, and the mortgage’s own rules apply on top.
What does Lendmire do on a Montebello first-time home buyer file?
Lendmire matches the option to the buyer and the first lien to the property, then runs both through approval and closing; it brokers the loan through its wholesale network and is never the lender.
Which mortgages can the assistance be used with?
The nothing-to-repay option pairs only with FHA; the forgivable and repayable second liens pair with FHA, USDA, and HUD-184, the closing-cost repayable option with FHA only. The property and the buyer decide which first lien fits.
Is there an option for refinancing?
For an existing FHA loan, yes — a repayable option sized on the balance, for a full refinance rather than a streamline.
Can I buy a duplex or a fourplex with assistance?
Owner-occupied small multi-unit homes qualify, with the unit count deciding the option; a Montebello, CA buyer living in one unit of a fourplex uses the nothing-to-repay option, the one purchase option that reaches four units; the second-lien options stop at two.
Can I combine this with another assistance program?
No. One assistance program per Montebello, CA file. The nothing-to-repay and forgivable options also do not combine with a high-balance first lien, and the nothing-to-repay option not with certain FHA specialty programs.
Place your Montebello purchase on the right option today.
A first read of a Montebello assistance scenario takes a few minutes and commits you to nothing; the option, the category, and the property rules are explained before anything is ordered.
This guide covers Montebello — for the statewide options, categories, and property rules, see Down Payment Assistance in California, part of Lendmire’s down payment assistance program.
Nearby markets in California: Pico Rivera · Monterey Park · Alhambra · Downey · Whittier · El Monte · Huntington Park · South Gate
Related programs: FHA Loans · USDA Loans · FHA 203(k) Rehab Loans