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 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a Notice of Default (unless rescinded)
|
| PROGRAM RESTRICTIONS |
CHDAP cannot be combined with CalHFA’s Extra
Credit Teacher Home Purchase Program (ECTP). |
| ADDITIONAL PROGRAM OPTIONS |
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. |
| 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. |
| UNDERWRITING |
See
CalHFA’s Underwriting Guidelines. |
| QUESTIONS |
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 |
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.