August 21, 2008
SACRAMENTO, CA – The California Housing Finance Agency (CalHFA), the state's provider of affordable loans for first-time homebuyers, has expanded to three additional counties its special program to help first-time homebuyers purchase homes in communities hardest hit by the foreclosure crisis.
The expansion to Monterey, Sacramento and San Benito counties and additional areas in Alameda and Contra Costa County builds on the effort announced last month by Governor Schwarzenegger. Under the program, first-time homebuyers will be eligible for below market rate loans to purchase foreclosed homes in ZIP codes with some of the state's highest foreclosure rates.
Several lenders have agreed to partner in the program and offer sales prices on foreclosed properties in those ZIP codes of at least 12 percent below the estimated value.
"The CalHFA Community Stabilization Home Loan Program benefits first-time homebuyers and neighborhoods affected by these foreclosures," said Theresa Parker, Executive Director of CalHFA. "Loans for these properties will be at fixed, below market interest rates and the reduced prices on the properties will make them attractive and affordable for first-time homebuyers."
This program is available in areas identified as among the most impacted by foreclosures in the state.
CalHFA estimates that the program will finance loans for between 800 and 1,000 firsttime homebuyers. The homes must fall at or under CalHFA's sales price limits, and families must meet income requirements.
In Sacramento County, for example, families of three or more can earn up to $99,400 and still be eligible for the program. The limit on the home sales price in Sacramento is $580,000.
"While this program will not solve the crisis, it is an important step in addressing some of the negative impacts of foreclosure on communities and also helping people who have long been priced out of homeownership achieve their dream of buying their first home," Parker said.
The program involves properties owned by lenders who have opted to partner with CalHFA on this program and offer reduced prices. Importantly, Parker said, each of the homes will be purchased by people who will live in the homes.
"This program will put homeowners into these houses, not speculators or investors," Parker said.
The program began July 21, 2008 and will be offered until the $200 million in financing is allocated. The program is funded using tax-exempt bonds, without any cost to California taxpayers. The initial areas covered by the program included Riverside, Stanislaus, San Joaquin and Merced counties as well as parts of Los Angeles, Contra Costa and Alameda counties. All or parts of the following counties are also included in the program: Alameda, Contra Costa, Los Angeles, Merced, Monterey, Riverside, San Benito, San Bernardino, San Joaquin and Stanislaus.
For a list of foreclosed properties eligible for this program, sales price limits and income eligibility requirements please visit www.calhfa.ca.gov.
CalHFA has been playing a key role in helping Californians purchase their first homes since it was created by the legislature in 1975 to offer safe, fixed rate financing for firsttime homebuyers. The agency has invested more than $18 billion in non-taxpayer funds to help more than 150,000 California families live in a home of their own, with mortgages they can afford.
Contact: Evan Gerberding
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