The California Housing Finance Agency (CALHFA) and the Federal Housing Authority (FHA) are teaming up to offer home loans to low-to-moderate income households that feature below-market interest rates, affordable down payments, and other benefits. This program is specifically for first-time homebuyers or veterans.
In order to be considered a first-time homebuyer, borrower must not have owned and occupied a home within the last three years.Veterans who qualify under the Heroes Earnings Assistance & Relief Tax Act are also eligible for this loan program. This loan product does include upfront mortgage insurance, but the borrowers are permitted to use the California Homebuyers Downpayment Assistance Program (CHDAP), which can provide up to 3% of the home's purchase price or closing costs assistance for added assistance.
Borrowers must meet a number of eligibility requirements to qualify for this CalHFA program including:
CalHFA's income limits, which vary by county and family size. For a family of four in San Diego County, for example, income must be less than $115,640 per year.
Purchasing homes that are within FHA's loan limits and CalHFA's sales price limits. Mortgage loans are limited to $417,000 under FHA guidelines. CalHFA's sales price limits vary by county. For San Diego County, the limit is $627,750 for non-targeted and $767,250 for targeted areas.
Meeting the minimum credit score requirements with maximum debt-to-income ratios.
Completion of a HUD-approved homebuyer education program.
Of course, homebuyers are still eligible for a purchase rebate of up to 1% of the home's purchase price using a HouseRebate.com REALTOR
For further details on the CALHFA-FHA program, please visit:?? www.calhfa.ca.gov
Source:Central Valley Business Times, September 7, 2010
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