Sunday, January 30, 2011

CalFHA offers 4% loan to first time home buyers.

  • Act Now-First time California Home buyer. CalFHA program defined below. Loan at 4%.

    The California Housing Finance Agency announced this morning that it's making new, less expensive 30-year fixed-rate loans for-first time homebuyers who meet low- and moderate income guidelines.

    Details are here in this news release. More details are in this Web page from CalHFA, including county-by-county income limits for the program.

    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.

    Web page from CalHFA, including county-by-county income limits for the program.

    If you are looking to buy a home in Silicon Valley call
    Ruth or Perry at 408-656-5343 or 408-859-4111

    or go to our web site

    CalHFA FHA Loan Program is explained below

    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.

    Program Elements



    First-Time Homebuyer

    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.

    Income Limits

    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.

    Property Eligibility

    • Existing single family, one-unit residence, including condominium/PUDs.
    • Manufactured housing is not permitted.
    • Leaseholds/Land Trusts are not allowed with this program

    Available Through Approved Lenders

    Refer to CalHFA's approved lender list for a lender in your area.

    Down Payment and
    Closing Cost Assistance
    1. The California Homebuyer's Downpayment Assistance Program (CHDAP) can be used for down payment and/or closing cost assistance.
    2. The School Facility Fee Down Payment Assistance Program (SFF) is a conditional grant program that provides assistance to buyers of newly constructed homes throughout California
    3. CalHFA has partnered with over 300 local agencies under the Affordable Housing Partnership Program (AHPP) which can be combined with the CalHFA FHA for down payment and closing cost.

    For more information refer to a CalHFA approved lender.

    Homebuyer Education

    Homebuyer education is required for each borrower. CalHFA will accept a homebuyer education counseling certificate of completion via online, in-person, or by phone from the following providers:

    Other Requirements

    Borrowers and properties must qualify for and meet the requirements of the CalHFA lender and FHA. Other program requirements may apply; please contact a CalHFA-approved lender for more details.

    For More Information

    To learn more about the CalHFA FHA loan program, contact us at:

    CalHFA Homeownership Division
    P.O. Box 4034, Sacramento, CA 95812-4034
    Phone: 877.9.CalHFA

    Homebuyers interested in applying for financing should contact the specific AHPP partner or one of CalHFA's approved lenders.

    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.

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