Builders/Developers may purchase forward commitments for permanent first mortgage financing for CalHFA-eligible borrowers tied to their construction/marketing program at single family new-home developments anywhere in the state. On any day, builders/developers may lock-in, through an approved CalHFA Lender, an interest rate for a pool of funds for the first mortgage products available on the date of the commitment for terms of 6, 9, or 12 months (nonprofits up to 18 months) into the future for commitment fees of 0.5%, 1.5%, and 2% respectively. BLOCK forward commitments may only be used for new construction housing.

As of August 1, 2007, CalHFA's interest only PLUS^SM loan is no longer available through BLOCK forward commitments, as well as properties secured by manufactured housing.

A BLOCK forward commitment locks only the interest rate on the pool of funds for the first mortgage products available on the date of the commitment for the maximum term purchased.

NO CASH UPFRONT is required for six-month commitments as the fees are collected as a discount at loan purchase.

Fees for 9 and 12-month commitments are paid with one-half cash up front, one-half as a discount at loan purchase.

Commitment fees are charged only for the length of time used. Thus fees paid for long-term commitments may be reduced if loans are delivered for purchase earlier in the term.

Forward commitments with longer terms (BLOCK Program) can be utilized simultaneously and concurrently with 180-day no fee locks through the Single Loan (SL) process. Both are available through CalHFA's "Over-the-Counter" Lender Access System (LAS) through an approved CalHFA Lender.

Rolling Allocation Cap

For-profit developers are assigned allocations based on their CalHFA production for the most recent year. The allocation is restored, much like the "line of credit" concept, as loans are purchased. New developers are given a minimum allocation until a production level is established.

The nonprofit developer's cap is determined by their production with CalHFA over the past two years. Further limitations may be placed on commitments for the Self-Help Builder Assistance Program (SHBAP).

Commitment Terms/Fees:

*Nonprofit/SHBAP developers may use 180-day free locks also.
**SHBAP - Self-Help Builders Assistance Program

Interest rates for the BLOCK Program, as well as the resale program, are subject to change daily. Changes are announced periodically by Program Bulletin as well as appearing on our web site. Subordinate loans are not part of the BLOCK program, and are subject to availability, rates and terms in effect on the date the first mortgage is reserved. Except as noted above, all new construction loans will have access to the same CalHFA loan products, and be subject to the same program rules, including income and sales price limits. Builders/developers wishing to obtain more information about the BLOCK Program are asked to contact CalHFA Homeownership Programs.

Homebuyers interested in applying for financing, should contact one of CalHFA's approved lenders.

Please contact the Homeownership Programs staff for additional information:
CalHFA Homeownership Division
P.O. Box 4034 , Sacramento, CA 95812
Phone: 877.9.CalHFA
Email: homeownership@calhfa.ca.gov

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.