CalHFA Executive Director Steven Spears says the option helps qualified first-time buyers get around the some of today's extremely tight rules set by conventional lenders.
Spears said: "Housing finance agencies around the country have historically played an important role in each state's housing market. With the disruption in the credit markets over the last two years, we have been limited in our ability to help finance home purchases. This new program offers California families another way to purchase their first home with reliable, fixed rate financing."
Those interested can check with a CalHFA-approved lender or call CalHFA at 1-877-922-5432.
This CalHFA FHA loan program is designed to enhance affordability and homeownership opportunities by offering a low, fixed interest rate that will not change during the entire loan term. This program is intended for first-time homebuyers who meet specific income and sales price requirements and who are purchasing a new or existing home anywhere in California.
How The Program Works
The CalHFA FHA offers financing up to 96.5% of the purchase price or appraised value whichever is less. To make owning your first home more affordable, down payment and closing cost assistance may be obtained when combining this CalHFA first mortgage with CalHFA junior loan programs.
DETAILS AND REFERENCE SOURCES
Borrower must be a first-time homebuyer purchasing a primary residence intended for owner-occupancy.
A borrower is considered a first-time homebuyer if they have not owned and occupied a home in the past three (3) years.
Refer to CalHFA's income limits established for the county in which the property is located.
Sales Price Limits
Refer to CalHFA's published sales price limits for the county in which the property is located.
Be a U.S. citizen, permanent resident alien or other qualified alien.
Existing single family, one-unit residence, including condominium/PUDs.
Manufactured housing is not permitted.
Leaseholds/Land Trusts are not allowed with this program
CalHFA does not lend money directly to consumers. CalHFA works through and uses approved private lenders to qualify consumers and to make all mortgage loans. CalHFA purchases closed loans that meet CalHFA's requirements. The fees consumers pay could be different depending on the lender and the program. View the sample Truth in Lending disclosure here.