CalHFA FHA Government Loan for First Time Home Buyers
The California Housing Finance Agency (CalHFA) has added a new FHA government loan program for first time home buyers.
CalHFA is the State of California’s first time home buyer program for the past 35 years. The program was chartered as the State’s affordable housing bank to make low interest rate loans through the sale of tax-exempt bonds.
CalHFA is a completely self-supporting State agency with the bonds being repaid by revenues generated through the mortgage loans and not taxpayer dollars.
Highlights of the FHA Government Loan Program
- 30 year fixed rate mortgage
- Below market interest rates set by CalHFA (WOW – these rates are LOW!)
- Interest rate is EVEN LOWER if used with CHDAP down payment assistance program
- Must meet CalHFA income limits
- The purchase price limits for FHA loans are determined by two different factors.
- CalHFA has Sales Price Limits in addition to FHA Mortgage Limits, both depend on what County the home is located in.
- Minimum credit score is 640 – UPDATED
- Minimum borrower contribution is 1% of the purchase price or $1,000 whichever is less – UPDATED
- Maximum 1.5% origination
- Maximum $550 processing/lender fees
- Non-occupying co-signers allowed
- Seller paid concessions increased from 3% to 6% of purchase price – UPDATED
This is an incredible opportunity for first time home buyers in the state of California.
CalHFA first mortgage programs can be used along with the CHDAP assistance program.
CHDAP is an assistance program equal to 3% of the purchase price with no payments for the life of the loan unless you sell or refinance.
The interest rate is unbelievably low on this loan and it can be applied to either down payment assistance or be used to pay your closing costs.
So here’s the final word on this incredible announcement.
If you have been considering buying a home in California, this just made the decision a little bit easier!
As you can tell, i’m pretty excited about his. CalHFA discontinued most of their programs in 2008 due to the volatility in the mortgage markets.