Buying Your 1st Home in California With The CalHFA Program

First time buyers signing mortgage documentsAs of September 2010 buying a home in California got a little more interesting for some people – first time buyers. And, a first time buyer in California for the purposes of what I’m writing about today is if you have not owned and occupied a home in the past 3 years.

If you find yourself in the category of being a first time home buyer who does not have VA loan eligibility, then you should keep reading. If you are a Vet then you should probably talk to a VA lender about getting a VA loan because of the record low VA rates. Also, in my opinion in most cases the VA loan is a superior mortgage program on the market today, including the one that I’m getting ready to present below.

California first time home buyers can once again take advantage of the CalHFA FHA Loan Program. The CalHFA FHA loan program is solely designed to build homeownership opportunities and home affordability for first time home buyers. The program offers a low fixed interest rate mortgage to those first time buyers who meet certain specified income and home sales price guidelines and qualify for FHA financing. Unlike VA loans – which allow an eligible home buyers to buy a home with 100% financing, FHA loans require home buyers to have a down payment of 3.5%. The CalHFA FHA loan program is no different.

However, what makes this program unique and a good deal for first time home buyers in California is that it can be coupled with the California Homebuyer’s Downpayment Assistance Program (CHDAP). The CHDAP provides eligible and qualified first time buyers a payment deferred “junior” mortgage (small second mortgage) of up to 3% of the sales price that can be applied to the home buyer’s 3.5% down payment requirement when getting an FHA mortgage. site down domain data . I was talking about one person who had recently bought a house in Riverside (by the way Riverside home loans are available for this program now as well as virtually any other area of California) and used the program.

Some notes about this program – use can only use it to buy either a new or existing single family home or condo which means you cannot use it to buy investment properties, manufactured homes, or multi family homes. You also are limited in the amount of income you can make and the home price that you can purchase is capped. The income and home price caps are determined by the county where the property being purchased is located.

You will have to work with a CalHFA approved lender to get access to the program. Learn more about this program at the CalHFA website (California Housing Finance Agency).