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 (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.

TERM

30 years

LTV

Maximum LTV: 100%

CLTV

Maximum CLTV: 103%

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

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 (See CalHFA Program Bulletin #2009-13).
• 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

• CalHFA-approved lenders, and
• Bank of America, N.A. correspondent lenders approved for this program.

(to seek Bank of America, N.A. approval, call 800.669.6065, extension 8160)

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. 

• Fannie Mae Homebuyer Counseling Counselors/Administrators Search
• Freddie Mac Homebuyer Counseling Counselors/Administrators Search
• HUD-approved Housing Counselors

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%

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