PROGRAM DESCRIPTION

The High Cost Area Home Purchase Assistance Program (HiCAP) is designed to help make homeownership a possibility for first-time homebuyers in some of California's higher cost counties. HiCAP is available only when combined with a CalHFA conventional first mortgage program.

HiCAP is a deferred-payment second loan in an amount not to exceed 4% of the lesser of the sales price or appraised value to be used only for down payment assistance. This second loan has a low simple interest rate and a term that will match the term of the CalHFA conventional first mortgage loan; however, payments on the HiCAP loan are deferred for the life of the first loan.

In addition, CalHFA will permit homebuyers to use other CalHFA-approved down payment assistance loans or grants (with the exception of CHAP) to help in the purchase of the home.

TARGET MARKETS

This program is intended for borrowers purchasing in Alameda, Contra Costa, Los Angeles (Except Palmdale/Lancaster Areas), Marin, Monterey, Napa, Orange, San Benito, San Francisco, San Luis Obispo, San Mateo, Santa Barbara, Santa Cruz, Solano, Sonoma, and Ventura counties.

PARTICIPATING LENDERS

CalHFA approved lenders .

BORROWER ELIGIBILITY

Borrowers must meet the following requirements :

• Be a U.S. citizen or permanent resident alien or qualified alien
• Be a first-time homebuyer
• 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 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
• Property must be located in one of the Target Market counties listed above.
• Be a single-family, one-unit residence, including condominium /PUD
• Manufactured housing must meet eligibility requirements

Meet the requirements of the mortgage insurer/guarantor of the CalHFA 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

4% 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.

REPAYMENT OF SECOND LOAN

Repayment of the principal and interest on the second 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)

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.

QUESTIONS

Questions regarding the High Cost Area Home Purchase 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