PROGRAM DESCRIPTION

The California Homebuyer’s Downpayment Assistance Program (CHDAP) is designed to provide a deferred payment, simple interest rate junior loan of an amount up to three percent (3%) of the sales price or appraised value, whichever is less. The junior loan may be used for down payment or closing costs and may be combined with a CalHFA or non-CalHFA conventional or government first mortgage loan.

TARGET MARKETS

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

PARTICIPATING LENDERS

CalHFA- approved lenders .

BORROWER ELIGIBILITY

Borrowers must meet the following requirements :

• Be a first-time homebuyer
• Occupy the property as their primary residence; non-occupant co-borrowers are not allowed
• Borrower’s income cannot exceed HCD-defined moderate 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
• 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

3% 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. The maximum 102% CLTV also applies to CHDAP loans used with a non-CalHFA first mortgage.

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• Upon the formal filing and recording of a Notice of Default (unless rescinded)

Effective January 1, 2005, State Legislation has increased the amount of down payment assistance offered under the CHDAP, from 3% to 5% of the purchase price or the appraised value (whichever is less) for borrowers purchasing a newly constructed home in specific eligible areas.

See the list of government entities that have eligible areas (such as, an infill opportunity zone, transit village development district or transit-oriented development plan area) or you may contact your local city/county planning department.

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 regarding the California Homebuyer’s Downpayment Assistance Program should be directed to CalHFA- approved lenders or the CalHFA’s Homeownership Division at:

P.O. Box 4034 , Sacramento, CA 95812
Phone: 877.9.CalHFA
Email: homeownership@calhfa.ca.gov