(562) 524-5888

First-Time Home Buyer Loans in Compton, CA

Buying your first home brings up many questions. How much do I need saved? Which loan makes sense? Is there help with the down payment? This page walks through the main options for first-time buyers in Compton in plain language, so you can think it over at your own pace.

I'm Charlie Lara, a loan officer with Elevate Mortgage. Our office is in nearby Downey, and I work with buyers throughout Compton and the rest of Los Angeles County, in English or Spanish. As a mortgage broker, I can compare programs from a number of wholesale lenders instead of offering just one.

Loan options first-time buyers often look at

FHA loans

FHA loans are insured by the Federal Housing Administration. They allow a lower down payment than many conventional loans and can be more flexible about credit history. They include mortgage insurance and are meant for homes you will live in. Learn more on our FHA overview page (/loan-programs/fha-loans).

Conventional loans

Some conventional loan programs are designed for first-time and moderate-income buyers and also allow a smaller down payment. If your credit is strong, a conventional loan may be worth comparing with FHA.

CalHFA programs

The California Housing Finance Agency (CalHFA) offers first mortgage programs and down payment assistance for eligible first-time buyers in California. These loans are made through participating lenders and have income limits, price limits and a homebuyer education requirement. CalHFA assistance can often be paired with an FHA or conventional first mortgage.

Down payment assistance

Beyond CalHFA, there are other down payment and closing cost assistance programs. Some come from Los Angeles County and some from cities. In Compton, the City of Compton and the Los Angeles County Development Authority (LACDA) both list homeownership programs on their websites. Many assistance programs work as a second loan with their own repayment rules, and funding opens and closes during the year. I can help you check what is available when you are ready and how it would fit with your first mortgage.

You can also read how down payment assistance works in general on our blog (/blog/homebuying-help-how-downpayment-assistance-programs-work).

Pre-qualification vs. pre-approval

These two terms sound alike but mean different things.

  • Pre-qualification is an early estimate. You share basic information about your income, debts and savings, and we get a rough idea of a price range. It is a helpful first step if you are just starting to plan.
  • Pre-approval goes further. You apply, we review your credit and documents such as pay stubs, tax returns and bank statements, and a lender's guidelines are applied to your file. A pre-approval letter shows sellers that your financing has been reviewed.

Neither one is final loan approval. Final approval comes after the home is under contract, the appraisal is done and underwriting reviews everything. More detail: Prequalified and pre-approved, what's the difference (/blog/prequalified-and-pre-approved-whats-the-difference).

Steps to buying your first home in Compton

  1. Start with your goals. Think about the monthly payment you are comfortable with, how much you have saved and when you would like to move.
  2. Talk with Charlie. We go over your questions and the programs that may fit, including FHA, CalHFA and local assistance.
  3. Take a homebuyer education course if your program requires one. Many assistance programs do.
  4. Get pre-approved. Gather your documents and complete the application. Our application checklist can help (/mortgage-basics/application-checklist).
  5. Shop for a home with your agent. Your pre-approval letter helps you make an offer with confidence.
  6. Go under contract, then appraisal and underwriting. I keep you and your agent updated along the way.
  7. Close and get your keys.

A few things to keep in mind

  • Program rules and funding change. What is available one month may differ the next.
  • Older homes may need repairs to meet FHA or program property standards. Your agent and inspector can help you plan for that.
  • Keep your finances steady while you are in the process. Avoid opening new credit or making large purchases before closing.

For the full picture, see our home purchase guide (/home-purchase), how the loan process works (/loan-process) and common questions (/faq). Buying in Downey? Read FHA Loans in Downey, CA (/fha-loans-downey). Información en español: /prestamos-hipotecarios-en-espanol.

First-time buyer questions

Who counts as a first-time home buyer?

For many programs, it means someone who has not owned a home they lived in for a recent period of time. Each program sets its own definition, so we check the rules for the program you are looking at.

Can I combine CalHFA down payment help with an FHA loan?

Often, yes. CalHFA assistance can be paired with an eligible FHA or conventional first mortgage, as long as you meet the program's income, price and education requirements.

Do I need perfect credit to buy my first home?

No. Some loan programs, such as FHA, are more flexible about credit. Your credit still affects which options fit and what they cost, so we review it together.

Does getting pre-approved hurt my credit?

A pre-approval usually involves a credit check, which can have a small effect on your score. Rate shopping within a short window is generally treated as a single inquiry by the credit scoring models.

Is down payment assistance free money?

Sometimes, but not always. A few programs are grants, while many are a second loan with their own repayment rules. We go over how a specific program works before you decide.

Thinking about your first home in Compton?

There is no pressure to have everything figured out. If you would like to talk through your options in English or Spanish, I'm here to help.

See if you qualify | Talk with Charlie: (562) 524-5888

Ask a homebuying question — team@elvtmtg.com or /contact-us

Office: 8050 Florence Ave #202, Downey, CA 90241

Charlie Lara, Loan Officer, NMLS #2251128. Elevate Mortgage, NMLS #2387326. 8050 Florence Ave #202, Downey, CA 90241. (562) 524-5888. team@elvtmtg.com. Look up licensing at www.nmlsconsumeraccess.org. This is not a commitment to lend. All loans are subject to credit approval, underwriting, property review and program guidelines. Down payment assistance programs have eligibility rules and limited funding set by each program. Not all applicants will qualify. Equal Housing Opportunity.