CalHFA Community Stabilization Home Loan Program (CSHLP)

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 CalHFA’s CHDAP and Fannie Mae eligible Community Seconds® programs (which are designated on CalHFA’s AHPP list as “CalHFA MBS Program Eligible”) for a 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: 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.

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%

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 (50% occupancy ratio required on existing condominiums) (See CalHFA Program Bulletin #2008-04).
  • 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
Los Angeles
90008 90043
93535 93550
Merced
All ZIP codes
Monterey
All ZIP codes
Riverside
All ZIP codes
Sacramento
All ZIP codes
San Benito
All ZIP codes
San Bernardino
92336
San Joaquin
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%

.59%

95.01 - 97%

18%

.50%

90.01 - 95%

16%

.46%

85.01 - 90%

12%

.34%

80.01 - 85%

6%

.23%

TRANSACTION TYPE

Purchase transactions only

PARTICIPATING LENDERS

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

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

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.

SUBORDINATE FINANCING

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

All non-CalHFA subordinate loans will require prior approval by CalHFA (see CalHFA Program Bulletin #2002-18).

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.
If no score is available, alternative documentation may be used only on loans with an LTV of 95% or less that have borrowers who demonstrate credit worthiness.

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
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.

09/08