INTEREST
RATE

Fixed, special reduced rate for the entire loan term.
Currently at 5.50%

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: 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 instituion.

Homebuyer education required; refer to the Homebuyer Education section of this program description.

Fannie Mae Adverse Delivery Charge (AMDC) and Loan Level Price Adjustment (LLPA) will apply with special provisions for this program.

Reservations time limit is 90 days. No extensions.

No relocks allowed.

TERM

30 years

LTV

Maximum LTV: 100%

CLTV

Maximum CLTV: 103%

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

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.

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 (50% occupancy ratio required on existing condominiums) (See CalHFA Program Bulletin #2008-04).
• Manufactured housing is NOT eligible.

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. 

TRANSACTION TYPE

Purchase transactions only

PARTICIPATING LENDERS

All CalHFA-approved lenders
Originating lenders must also be approved by both Fannie Mae and Countrywide

HOMEBUYER EDUCATION

Required for all borrowers 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, Countrywide Bank, FSB, or HUD-approved homebuyer counselors. CalHFA accepts education completion via online, face-to-face, or phone.

• Fannie Mae Homebuyer Counseling Counselors/Administrators Search
• Freddie Mac Homebuyer Counseling Counselors/Administrators Search
  
• Genworth Homebuyer Counseling Online Option
• Countrywide Homebuyer Counseling Online Option
• HUD-approved Housing Counselors

SUBORDINATE FINANCING

The following subordinate loans are eligible to be used with this program:

• California Homebuyer’s Downpayment Assistance Program (CHDAP)
• Affordable Housing Partnership Program (AHPP) - Any Fannie Mae eligible Community Seconds® program which is approved for use with Fannie Mae and is designated on CalHFA’s AHPP list as “CalHFA MBS Program Eligible” for a total CLTV of 103%.

UNDERWRITING

All CSHLP loans must meet Fannie Mae MCM underwriting standards, CalHFA’s Conventional Loan Underwriting Guidelines, and this Program as follows:

Credit Score Minimums:

• Whether a loan is manually or AUS underwritten, loans with an LTV greater than 95% 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.

FILE TRANSMITTAL

Only one package is necessary for CalHFA loan files. Refer to the Loan Submission Checklist for minimum documentation needed.

Unless directed otherwise, send first mortgage loan files and documents to Countrywide Bank, FSB at:

Countrywide Bank, FSB
Attn:  Bond Department
8501 Fallbrook Avenue
West Hills, CA 91304
MS:  WH-50D

Send CHDAP subordinate loan files 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 Countrywide)

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