100% Financing Options, Try CalHFA’s New Program

This weekend is the virtual end of Nehemiah and seller-funded down payment assistance programs. Although the formal deadline is October 1, 2008, lenders will stop taking new applications and lock for this program in the next week or so. Unless you have a property under contract this weekend, chances are slim that you’ll be able to get your down payment help from the seller.

So what’s a buyer to do? There are a few options that remain (I’ll be writing about VA and CalVET loans in the coming weeks). Today however, I want to address a program that has just been expanded to include Sacramento County. It is run by the California Housing Finance Agency (CalHFA), the state’s provider of affordable loans for first-time home buyers.

The Community Stabilization Home Loan Program began in July of this year and was funded by $200 mil in tax exempt bonds. It provides 100% financing at low 30 year fixed rates to qualified first-time buyers who select a property from a list of foreclosed homes. The list includes properties owned by lenders who have agreed to partner with CalHFA to offer reduced prices. Here are some pertinent facts:

• You must be a first-time buyer (have not owned a home in the last three years)
• You must live in the property (you cannot convert this to a rental for as long as it remains encumbered by the CalFHA loan)
• Can be combined with California Homebuyer’s Downpayment Assistant Program (CHDAP) for a total 103% financing
• Sacramento sales price limits: $580,000
• Sacramento income limits: 2 person family, $85,200 / 3+ persons, $99,400
• Home buyer education required
• Select a property from the approved list (scroll down until you see Sacramento County)
• 30 yr fixed rate loan, currently at 5.5%

Want to see if you qualify? Give me a call or send an email if you live in California.