PROGRAM DESCRIPTION

CalHFA purchases first mortgage loans that are insured/guaranteed by FHA, VA or USDA to enhance affordability and homeownership opportunities in the form of 30-year low, fixed rate loans. Financing may be used for purchasing either existing or new construction homes.

TARGET MARKETS

This program is intended for low and moderate income first-time homebuyers throughout California.

PARTICIPATING LENDERS

CalHFA approved lenders who originate government loans.

BORROWER ELIGIBILITY

Borrowers must meet the following requirements:

• Be a U.S. citizen or permanent resident alien or qualified alien
• Be a first-time homebuyer
• Occupy the property as their primary residence; non-occupant co-borrowers are not allowed
• Borrower’s income cannot exceed CalHFA’s income limits established for the county in which the borrower is purchasing
• Meet credit, income and loan requirements of the CalHFA lender and the mortgage insurer (FHA, VA or USDA)

PROPERTY ELIGIBILITY

Properties must meet all of the following requirements :

• Sales price of the home cannot exceed CalHFA’s sales price limits established for the county in which the borrower is purchasing
• Be a single-family, one-unit residence, including condominium /PUD
• Manufactured housing must meet eligibility requirements
• Meet the requirements of the mortgage insurer/guarantor (FHA, VA or USDA)

TRANSACTION TYPE

Purchase transactions only

INTEREST RATE

CalHFA offers a unique interest rate for this program. A list of current rates is also available by contacting a CalHFA- approved lender .

MAXIMUM LOAN AMOUNT

Maximum as allowed by mortgage insurer, subject to borrower credit eligibility.

SUBORDINATE FINANCING

This program may be combined with the following subordinate financing options:

• CalHFA Housing Assistance Program (CHAP)
• California Homebuyer’s Downpayment Assistance Program (CHDAP)*
• Extra Credit Teacher Program (ECTP)*
• Affordable Housing Partnership Program (AHPP)
• School Facility Fee Down Payment Assistance Program (SFF)

*Only eligible for one program per transaction (CHDAP or ECTP)

Under no circumstances can the Combined-Loan-to-Value exceed 102% when utilizing any combination of CalHFA first mortgage loans and subordinate loan products or approved programs.

MORTGAGE INSURANCE

Mortgage insurance requirements are regulated by FHA, VA or USDA.

HOW TO APPLY

Borrowers apply through one of CalHFA’s approved lenders.

Lenders make reservations through CalHFA’s Lender Access System (LAS). Follow procedures outlined in Lender Program Manual.

QUESTIONS

Questions regarding this program should be directed to CalHFA- approved lenders or the CalHFA’s Homeownership Division at:

P.O. Box 4034 , Sacramento, CA 95812
Phone: 916.324.8088
Email: homeownership@calhfa.ca.gov