Down payment assistance and closing costs can be executed through the CHDAP with eligible CalHFA’s first mortgage loans or non-CAlHFA fixed rate, first mortgage loans. Also, CalHFA will allow qualified homebuyers to utilize other down payment assistance loans or grants to aid in the buying of a home.
Interest rates will fluctuate and be based on a borrower’s current monetary circumstances and fees of the lender. It’s strongly advised that borrowers consult a CalHFA-approved loan officer to receive accurate interest rate information.
Funding is not lent directly to borrowers, instead CalHFA goes through approved private lenders to qualify authorize borrowers and make mortgage loans.
To qualify, a borrower must first meet the criteria of a first-time home-buyer. Simply put, this is a person who has not owned and occupied a home at least within the last three years.
Next, a borrower needs to complete a home-buyer education consultation and receive a completion certificate from an eligible institution. This can be done online or in-person, although there is a $50 fee for the online option.
Along with meeting certain requirements the lender or mortgage insurer may have, a borrower’s income also impacts their eligibility. CHDAP has income limits when using an FHA first mortgage and using a VA, USDA or Conventional First Mortgage.
Upon using an FHA first mortgage in Los Angeles County, the income limit for a single-person household is $52,150. For Riverside County and San Bernadino County, the limit is $52,300 for a single person.
When using a VA USDA or Conventional loan, the limit for a single-person household is $54,450 in Los Angeles County. Yet in Riverside County and San Bernadino County, the single-person loan limit is $54,600.
The property must be a single-family residence with one unit with a maximum of five acres. This includes condos and planned unit developments. Granny units, guest homes and in-law quarters could qualify.
In Los Angeles County, the sales price of the home must not be greater than $611,900 for non-targeted properties and $747,880 for targeted properties. Riverside County and San Bernadino County have identical sales price limits at #347,625 for non-targeted properties and $424,875 for targeted properties.
To apply for the CHDAP, borrowers must contact a private loan officer in their area since CalHFA is technically not a direct lender. Documents such as pay stubs, tax returns, bank statements and employment history should be assembled by the borrower upon contacting a loan officer.
Call Golden Empire Mortgage today at (909) 457-0257 for more information on the California Homebuyer’s Down payment Assistance Program.