CalHFA Loans – Another Option for Buyers
In 2006-2007 we saw many conventional loan programs disappear, seemingly overnight. The media talked about the credit crunch and many people did not have any idea if they could still qualify for a loan and if so, how much. Savvy loan officers have taken the time to re-examine what is available to their borrowers, and have been looking at programs that were in many cases forgotten for several years. CalHFA is one of those programs.
CalHFA loans are designed for California buyers that meet these criteria:
- You have not owned & occupied your home in the last 3 years. (exception is for certain targeted areas)
- Household income is within an acceptable limit. For instance, moderate income for Alameda County 1-2 persons is $95,532, while in Fresno County it is $61,750.
- Purchase home must be within an acceptable price limit. Examples: Alameda non-targeted $585,699 (higher for targeted areas), Fresno $343,125.
- Must live in home until home is sold or loan is paid off.
- Meet lender loan requirements.
- Citizen of US or resident alien.
There are some other issues like limits of 5 acres, and more explanation of the terms at the CalHFA website. You can also visit the website and find a list of approved CalHFA lenders.
For those who qualify, the CalHFA loan allows for up to 100 percent financing and 30 to 40 year terms at fixed, below market rates. Downpayment and closing cost assistance is also available.
If your California property falls into the price range of the program, you might want to remind potential buyers to research the CalHFA program.