CalHFA - CalHFA Housing Assistance Program (CHAP)

PROGRAM DESCRIPTION	The CalHFA Housing Assistance Program (CHAP) is designed to provide up to 2% of the down payment assistance needs of eligible homebuyers purchasing a home in a CHAP-designated area anywhere in California. The program, for both new construction and existing home sales, is available when combined with a CalHFA Conventional (IOP, 30-Year Fixed, 40-Year Fixed), FHA-insured and CalHFA HomeChoice first mortgage loan. CHAP is a deferred-payment second loan for down payment assistance. The second loan has a low simple interest rate and a term that matches the term of the first mortgage; however, payments on the junior loan are deferred for the life of the first loan. In addition, CalHFA will permit homebuyers to use other CalHFA-approved down payment assistance loans or grants (with the exception of HiCAP) to help in the purchase of the home.
TARGET MARKETS	This program is intended for borrowers purchasing in Alpine, Amador, Butte, Calaveras, Colusa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Imperial, Inyo, Kern, Kings, Lake, Lassen, Palmdale/Lancaster Areas of Los Angeles, Madera, Mariposa, Mendocino, Merced, Modoc, Mono, Nevada, Placer, Plumas, Riverside, Sacramento, San Bernardino, San Diego, San Joaquin, Santa Clara, Shasta, Sierra, Siskiyou, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Yolo, and Yuba counties.
PARTICIPATING LENDERS	CalHFA- approved lenders.
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
PROPERTY ELIGIBILITY	Properties must meet 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 Property must be located in one of the Target Market counties listed above. Be a single-family, one-unit residence, including condominium /PUD Manufactured housing must meet eligibility requirements Meet the requirements of FHA on the first mortgage loan
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	2% of the sales price or appraised value, whichever is less. 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.
REPAYMENT OF JUNIOR LOAN	Repayment of the principal and interest on the junior loan shall be due and payable at the earlier of the following events: Transfer of title Sale of the residence Payoff or refinance of the first loan Upon the formal filing and recording of a Notice of Default (unless rescinded)
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 the CalHFA Housing Assistance Program should be directed to CalHFA- approved lenders or the CalHFA’s Homeownership Division: P.O. Box 4034 , Sacramento, CA 95812 Phone: 877.9.CalHFA Email: homeownership@calhfa.ca.gov

IMPORTANT DISCLOSURE INFORMATION:

CalHFA does not lend money directly to consumers. We use approved private lenders to qualify consumers and make all mortgage loans. Rates can vary depending on loan program and income level.

The information provided in this program description is for guidance only. While we have taken care to provide accurate information, we cannot cover every circumstance or program nuance. This program description is subject to change from time to time without prior notice. CalHFA does not discriminate on any prohibited basis in employment or in the admission and access to its programs or activities.

03/08