A Complete Guide to CalHFA First Time Homebuyer Programs - Cal30 & CHDAP
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The California Housing Finance Agency recently introduced two new first time homebuyer programs. The Cal30 is a fixed rate, low cost loan program, CHDAP is a 3% down payment assistance or closing cost assistance loan program. These are the slides from the online webinar, please feel free to contact us for questions or more information
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A Complete Guide to CalHFA First Time Homebuyer Programs - Cal30 & CHDAP
- 1. A Complete Guide to CalHFA Cal30 & CHDAP Programs Thank you for attending We will begin in a moment Class Scheduled to begin at 10:00am Homeownership Educator Scott Schang Branch Manager Broadview Mortgage Corporation 1-866-667-6724
- 2. A Guide to Cal30 & CHDAP Purpose and Goals of this Class Educate and Empower first time homebuyers by explaining special programs that are available Explain CalHFA first time homebuyer guidelines AKA - CHAFA phonetic spelling Keep you informed of new home buyer programs as they become available Discuss the practical application of these programs to assist in the purchase of your first home
- 3. A Guide to Cal30 & CHDAP Topics we will cover An introduction to the California Housing Finance Agency State First Time Homebuyer Program How CalHFA has changed with the market CalHFA financing programs qualifying guidelines A Complete Guide to the Cal30 Conventional Loan Program A complete guide to the California Housing Downpayment Assistance Program (CHDAP) Challenges and opportunities with CalHFA first time homebuyer programs
- 4. A Guide to Cal30 & CHDAP Getting the most value out of the class You may type questions in at any time during the presentation Questions box on your screen Homeownership experts are standing by to answer your questions during the presentation This is an interactive learning environment. You will get the most value by having your specific questions answered The only dumb question is the one you dont ask Write this number down in case of technical difficulty 1-866-667-6724
- 5. A Guide to Cal30 & CHDAP An Introduction to CalHFA Re-printed from CalHFA website www.CalHFA.ca.gov/about/ For over 30 years, California Housing Finance Agency (CalHFA) has supported the needs of renters and first-time homebuyers by providing financing and programs that create safe, decent and affordable housing opportunities for individuals within specified income ranges Established in 1975, CalHFA was chartered as the States affordable housing bank to make low interest rate loans through the sale of tax-exempt bonds A completely self-supporting State agency, bonds are repaid by revenues generated through mortgage loans, not taxpayer dollars.
- 6. A Guide to Cal30 & CHDAP How CalHFA has Changed with the Market CalHFA temporarily suspended loan programs in September 2007 Programs that were suspended include Conv/FHA 30 Year fixed 35/5 35 Year fixed / 5 Year Interest Only 40 Year fixed Down payment assistance programs CHAP 3% Down payment only Lower income CHDAP 3% Down payment or closing costs ECTP Extra Credit Teacher Program - 3% HiCAP - Up to $15,000 down or closing costs Discontinued CalHFA Mortgage Insurance Program PMI required over 80% LTV Strict qualifying guidelines
- 7. A Guide to Cal30 & CHDAP Financing Programs Qualifying Guidelines Eligible Property Types Newly constructed or existing (previously owned) home Single family residence (detached) Five acre maximum Attached residence (a half plex that is not part of a planned unit development (PUD) or Condominium A detached unit within a PUD A Condominium or attached unit in a PUD (Check with lender for eligible condominiums) Must be owner occupied if using CalHFA financing Loan due and payable if home ceases to be owner occupied Home must be located in the State of California
- 8. A Guide to Cal30 & CHDAP Financing Programs Qualifying Guidelines First Time Homebuyer Requirement Cannot have owned a main home in the past three years This requirement is waived if home is in Federally designated Targeted LMI area See link on tools & resources page Sales Price Limits Different programs have different sales price limits Sales price limits are higher in Targeted areas See link on tools & resources page Minimum 3% down payment required from borrowers own funds Cannot be gift funds 2 months PITI reserves required for all loans
- 9. A Guide to Cal30 & CHDAP Financing Programs Qualifying Guidelines Understanding the Federal Recapture Tax Under specific circumstances there may be a federal recapture tax that is assessed and collected on your federal tax return Recapture tax would not be paid If your household income does not rise significantly over the life of the loan (generally more than 5% per year), there is no recapture. If you sell your home after nine years, there is no recapture. If you sell your home within nine years, but there is no gain, there is no recapture. In other words, to owe any recapture at all, you must sell your home within nine years, earn significantly more income than when you bought the home, and gain from the sale. All three of these criteria must be met.
- 10. A Guide to Cal30 & CHDAP Cal30 Conventional Loan Program Fixed interest rate for the entire loan term Rates set and published by CalHFA Rates do not float like typical loan programs See tools & resources on site for link to rate sheet Maximum LTV Loan to Value 95% (subject to mortgage insurance availability) Maximum CLTV Combined Loan to Value 102% (subject to mortgage insurance availability) Maximum Loan Amount Fannie Mae conforming loan limit High balance loan limits not available for this program See tools & resources on site for link to area loan limits
- 11. A Guide to Cal30 & CHDAP Cal30 Conventional Loan Program Subordinate Financing This program may be combined with approved subordinate financing when available CHDAP may be used to cover down payment or costs Homebuyer Education Free, on-line homebuyer education course print certificate of completion and submit to lender Private Mortgage Insurance required Must meet PMI eligibility guidelines which take precedence over any CalHFA qualifying guidelines Only Radian Platinum members will insure over 90% Radian Platinum only available to direct lenders Any approved Private Mortgage Insurance may be used up to 90% LTV Must meet qualifying guidelines
- 12. A Guide to Cal30 & CHDAP California Homebuyers Downpayment Assistance Program - CHDAP CHDAP is a deferred payment, simple interest rate junior loan CHDAP can be used for down payment assistance or closing costs May be combined with a CalHFA or non-CalHFA conventional or government first mortgage loan May use other down payment assistance loans or grants (with the exception of ECTP) to help in the purchase of the home If homebuyer is using a CalHFA first mortgage loan, all additional programs must be CalHFA approved
- 13. A Guide to Cal30 & CHDAP California Homebuyers Downpayment Assistance Program - CHDAP Maximum Loan Amount 3% of the sales price or appraised value, whichever is less Under no circumstances can the CLTV exceed 102% when utilizing any combination of CalHFA first mortgage loans and subordinate loan products or approved programs The maximum 102% CLTV also applies to CHDAP loans used with a non-CalHFA first mortgage Note: When CalHFA subordinate loans are combined with FHA, VA or USDA first loans, the financed upfront MIP or guarantee fee is included with the base loan amount in calculating the first loan amount LTV
- 14. A Guide to Cal30 & CHDAP California Homebuyers Downpayment Assistance Program - CHDAP Fixed interest rate for the entire loan term Rates set and published by CalHFA Rates do not float like typical loan programs See tools & resources on site for link to rate sheet Term of CHDAP Loan Term matches the term of the first mortgage Payments on the junior loan are deferred for the life of the first loan Minimum Borrower Contribution Minimum 3% of the sales price required from the borrower(s) own funds
- 15. A Guide to Cal30 & CHDAP California Homebuyers Downpayment Assistance Program - CHDAP Repayment of the principal and interest on the junior loan shall be due and payable at the earlier of the following events: Transfer of title Sale of the residence Payoff or refinance of the first loan Upon the formal filing and recording of a Notice of Default (unless rescinded) Program Restrictions May not be used with ECTP- Extra Credit Teacher Program May not be used with CalSTRS 80/17 per CalSTRS guidelines
- 16. A Guide to Cal30 & CHDAP Challenges and opportunities with CalHFA Challenges with CalHFA Loan Programs Private mortgage insurance qualifying guidelines are often much more restrictive than first mortgage lender guidelines and must be given precedence Maximum LTV for Cal30 is 95% Minimum 3% down payment required from borrowers own funds Cannot come from gift funds, grant or subordinate financing (CHDAP) Opportunities with CalHFA Loan Programs CHDAP may be used with non-CalHFA first mortgages if first lender is approved with CalHFA CHDAP may be used in tandem with CalPERS FHA and CalPERS personal loan (borrowers own funds) Other CalHFA loans may soon be released?
- 17. When, How & What to do Guide Wrap up and Take Aways We are a direct Lender that specializes in CalSTRS, CalPERS, CalHFA, FHA, VA, USDA and Community based down payment assistance programs We are more than happy to be your second opinion if you are already working with someone We are more than happy to recommend a qualified Real Estate Agent that we have interviewed and worked with Shares our values and education
- 18. When, How & What to do Guide Wrap up and Take Aways You will receive a Thank you email with links to the information weve talked about here today including Copy of Workbook & Notes PDF Links to the topics we discuss in class CalHFA loan programs CalHFA interest rates CalHFA loan limits CalHFA income limits CalHFA sales price limits CalHFA recapture tax guidelines Federally targeted areas search
- 19. Thank You for Attending If you enjoyed this class Tell a friend Please tell us how were doing Follow up email includes a link to Praise page Your feedback is greatly appreciated For more information 1-866-667-6724 Homeownership Educator Scott Schang Branch Manager Broadview Mortgage Corporation