What is CalHFA and Can I Benefit From It?
Have you heard of the CalHFA loan program? Unless you’re an approved mortgage lender you probably haven’t. The CalHFA loan program was developed by the California Housing Finance Agency which oversees this special program designed to assist lower to middle-income buyers buy and finance their very own home. While many of CalHFA borrowers are first-time home buyers, being a first-time buyer is not a requirement.
How it works
A CalHFA loan can be either a conventional or an FHA-insured loan. With a conventional loan, the maximum loan limit is $424,100 and the FHA loan maximum is subject to local FHA limits for the area in which the property is located. The interest rates on both are fixed-rate loans amortized over a 30 year period. The loan can only be used to finance a primary residence and the property can be a single-family home as well as in an approved condominium project.
There are certain income limitations that borrowers on the application can have based upon different factors that an experienced loan officer can provide. The sales price of the property is also limited based upon where the property is located. It’s important also to note this special loan program does not allow non-occupant co-borrowers such as a parent or relative or a cosigner.
A Homebuyer Education Course
CalHFA borrowers must also complete a homebuyer education course either online or in-person with an approved agency. The online course is an eight-hour session that does not have to be completed in one sitting. CalHFA also works with NeighborWorks America as well as with any HUD-approved Housing Counseling Agency. The cost for the online course is $99 but it’s important to note that only one loan applicant needs to complete the course. There are multiple locations where you can take the course in person.
Help with Closing Costs
If you’re having trouble saving up enough money for a down payment and closing costs, the CalHFA program can also help with those as well. The MyHome Assistance Program offers a second loan up to 3.5 percent of the sales price of the home. With a $150,000 home, that means $5,250 to put toward your down payment or closing costs. The MyHome Assistance Program is a loan that does not have to be paid back until the home is sold, the mortgage refinanced or otherwise paid in full.
Find Out if You Qualify
If you or someone you know would like to know more about this special program all you need to do is pick up the phone and give me a call and I can prequalify you over the phone and answer any and all questions you have to see if a CalHFA loan is right for you.
