This conventional first mortgage loan program
features a below market, 30-year, fixed interest rate, fully amortized
loan reserved for REO properties of participating financial institutions.
It has a maximum LTV limit of 100% and may be used with Fannie Mae eligible
Community Seconds® programs (which are designated on CalHFA’s
AHPP list as “CalHFA MBS Program Eligible”) for a maximum
total CLTV of 103%.
CSHLP
FAQs
INTEREST
RATE |
Fixed, special
reduced rate for
the entire loan term.
Currently at 5.50% |
| SPECIAL INSTRUCTIONS |
CalHFA-approved lenders originating
loans on these REO properties must provide a Legal
Owner-Investor-Seller/Servicer Certification (CSHLP
Certification), in addition to the standard CalHFA
REO Seller’s Affidavit.
Program Special Sales
Price (SSP): Owner or seller/servicer has reduced
the sales price for this program.
Specify CalHFA Financing on the purchase contract
when an offer is presented to the seller/servicer/financial
institution.
In cases where written offers are higher than
the SSP, an eligible CalHFA buyer/borrower who
makes a written counter-offer above the SSP will
still be allowed to proceed with a CSHLP Loan.
The SSP may also be increased in cases where the
seller [participating Financial Institution] is
paying all or any closing costs, not exceeding
the limited seller contribution. (For more details
see our CalHFA
Conventional Loan Underwriting Guidelines)
Homebuyer education required; refer to the Homebuyer Education section
of this program description.
Free CSHLP Marketing Materials and brochures are
available: Sign
Rider and CSHLP
Brochure.
Fannie Mae Adverse
Delivery Charge (AMDC) and Loan Level Price Adjustment
(LLPA) will apply with special provisions for this
program. See Program
Bulletin #2008-24 for details.
Reservations time limit is 90 days. No
extensions.
No relocks allowed.
For details on these Special Instructions, see CalHFA
Program Bulletin
#2008-24 and Program
Bulletin #2008-32. |
TERM |
30 years |
LTV |
Maximum LTV: 100% |
CLTV |
Maximum CLTV: 103% |
| MINIMUM BORROWER CONTRIBUTION |
There is no minimum borrower contribution
from the borrower’s own funds required for
this program.
If the loan is combined with a CalHFA subordinate
loan, a minimum contribution of 3% of the sales
price or appraised value, whichever is less, is
required from the borrower(s) own funds. Please
see CalHFA
Underwriting Guidelines for
complete details.
In the case of conflicting guidelines, the lender
must follow the more restrictive. |
ORIGINATION FEES AND OTHER
RELATED FEES |
- Maximum 1.5% Origination fee (or combination
of origination fee and
discount points, except as provided in CalHFA Program
Bulletin #2008-24 and Program
Bulletin #2008-32.)
- Fannie Mae Adverse Market Delivery Fee
- Fannie Mae MyCommunityMortgage® (MCM®)
Loan Level
Price Adjustment Fees
For details on Fees, see Program
Bulletin #2008-24 and Program
Bulletin #2008-32. |
BORROWER ELIGIBILITY |
Borrower(s) must meet the following requirements:
- Be a U.S. citizen, permanent resident alien
or qualified alien
- Be a first-time homebuyer, unless home is
located in a federally designated Targeted
Area.
- 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 eligible county
in which the borrower(s)is purchasing.
Meet credit, income and loan requirements of CalHFA. |
| PROPERTY LIST |
Property must be a selected REO from
one of the participating financial institution or
seller/servicers. Those include: Wells Fargo Premiere,
Citibank and its affiliates, HomEq Servicing, and
Fannie Mae - See the Current
Property List. |
PROPERTY ELIGIBILITY |
Property must meet all of the following
requirements:
- Properties must meet all CalHFA and Fannie
Mae repair, inspection, and health and safety
code requirements (See CalHFA Program
Bulletin #2007-44).
- Sales price of the home cannot exceed CalHFA’s sales
price limits established for the county
in which the property is located.
- Property must be vacant.
- Property must be an existing single-family,
one-unit residence, including approved condominium/PUDs
(See CalHFA Program
Bulletin #2009-13).
- Manufactured housing is NOT eligible.
|
| ELIGIBLE PROPERTY LOCATIONS |
|
Designated County
|
Eligible Zip Codes
|
| Alameda |
| 94601 |
94602 |
94603 |
94605 |
| 94606 |
94607 |
94608 |
94609 |
| 94610 |
94611 |
94612 |
94618 |
| 94619 |
94621 |
|
|
|
| Contra Costa |
All ZIP codes
|
| Kern |
All ZIP codes
|
| Los Angeles |
|
| Merced |
All ZIP codes
|
| Monterey |
All ZIP codes
|
| Riverside |
All ZIP codes
|
| Sacramento |
All ZIP codes
|
| San Benito |
All ZIP codes
|
| San Bernardino |
All ZIP codes
|
| San Joaquin |
All ZIP codes
|
| Solano |
All ZIP codes
|
| Stanislaus |
All ZIP codes
|
|
| ELIGIBLE OCCUPANCY |
Owner-occupied, primary residence
only |
MORTGAGE INSURANCE |
Mortgage Insurance is provided
by CalHFA Mortgage Insurance Services. Mortgage
insurance coverage is required on first loans in
excess of 80.00% LTV.
|
LTV:
|
Coverage: |
Premium: |
97.01 - 100% |
20% |
.84% |
95.01 - 97% |
18% |
.77% |
90.01 - 95% |
16% |
.72% |
85.01 - 90% |
12% |
.52% |
80.01 - 85% |
6% |
.38% |
|
TRANSACTION TYPE |
Purchase transactions only |
PARTICIPATING LENDERS |
(to seek Bank of America, N.A. approval, call
800.669.6065, extension 8160)
|
| MAXIMUM LOAN AMOUNT |
The maximum loan amount will be the
lesser of the CalHFA Sales Price limit for the county
in which the property is located, or the maximum
Fannie Mae loan limit for the area in which the property
is located. |
HOMEBUYER EDUCATION |
Homebuyer education
is required for each borrower using this program.
CalHFA will accept a homebuyer’s education
counseling certificate of completion issued through
Fannie Mae or Freddie Mac identified counseling
administration agencies, mortgage insurance companies,
or HUD-approved homebuyer counselors. CalHFA accepts
education completion via online, face-to-face,
or phone.
|
SUBORDINATE FINANCING |
This program may be combined with
the following subordinate financing options, when
available:
- California Homebuyer’s Downpayment
Assistance Program (CHDAP)
- Any Fannie Mae eligible Community Seconds® programs
which are designated on CalHFA’s Affordable
Housing Partnership Program (AHPP) list and subsequently
approved by CalHFA’s master servicer (shown
on AHPP list as “CalHFA MBS Program Eligible”).
For locality programs not showing as “CalHFA
MBS Program Eligible” the locality should
contact the CalHFA, AHPP Coordinator at 916.322.1349
for document submission to the master servicer.
When
using CalHFA subordinate financing, separate
income limits may apply.
When CalHFA subordinate
financing is used in conjunction with the first
loan, CalHFA Conventional Loan Underwriting Guidelines
must also be followed. In the case of conflicting
guidelines, the lender must follow the more restrictive.
|
UNDERWRITING |
In addition to the Credit Score
Minimums and Debt-to-Income Requirements listed
below, the CSHLP loans must meet all other Fannie
Mae MyCommunityMortgage (MCM) underwriting guidelines,
as well as CalHFA’s
Conventional Loan Underwriting Guidelines.
Credit Score Minimums:
- Whether a loan is manually or MCM DU underwritten,
loans with an LTV between 95% - 100% will require
borrowers to have a minimum representative credit
score of 680.
- Loans with an LTV equal to or less than 95%
will require a minimum representative credit
score of 660.
- A representative credit score for a single
borrower is the middle credit score, or for multiple
borrowers it is the lowest middle of their three
individual scores.
Total Debt-to-Income Ratios:
- MCM DU maximum 55%
- MCM Manual Underwriting maximum 45%
If no credit score is available, loans must be manually
underwritten where alternative documentation may
be used only on loans with an LTV of 95% or less
with borrowers who demonstrate credit worthiness. |
FILE TRANSMITTAL |
Only one file is necessary
for submission to CalHFA for MIS approval and Conditional
Tax Act Loan Approval. Refer to the Loan
Submission Checklist for minimum documentation
needed.
Once the loan is closed, the first purchase package,
including the original first note should be sent
to Bank of America, N.A.at:
Bank of America, N.A.
Attn: Bond Department
8501 Fallbrook Avenue
West Hills, CA 91304
MS: CA9-901-03-03
http://bondloans.bankofamerica.com/ProgramByState.aspx
CalHFA subordinate loan purchase package(s), including
the original CalHFA subordinate note(s) should
be sent to:
CalHFA Homeownership Programs
1121 L Street, 7th Floor
Sacramento, CA 95814
|
HOW TO APPLY |
Borrowers apply through one of
CalHFA’s approved
lenders. (Originating Lenders must also be
approved by both Fannie Mae and Bank of America,
N.A.)
Lenders make reservations through CalHFA’s Lender Access System (LAS). |
NOTES AND DEEDS |
The following forms are in effect:
- Multistate Fixed Rate Note Single Family Form
3200 (01/01)
- California Single Family Fannie Mae/Freddie
Mac Uniform Instrument (Deed of Trust) 3005 (01/01)
- CalHFA
Financing Rider to the Note and Deed of
Trust
Lenders must use applicable documents (e.g., MERS,
PUD Rider, etc.). |
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.
09/09
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