Mortgage Updates

The challenge in today's market for 1st time home buyers - isn't new... It takes time to save 3.5% for a down payment and possibly more for the closing costs if the seller isn't ready or willing to assist.  Now however, CalHFA has brought forth a new program just in time for the fall selling season that will help both buyers and hard hit new home sales communities where buyers can find some of the best buys. 

The CalHFA FHA 30 year fixed rate Government Insured loan program requires no home ownership for the last 3 years, and has income restrictions based household size.  The income limitations are based on the HUD median income for moderate income households per County.  The sales price limits also vary County by County.  The program is available State wide. Example: Sacramento and Placer sales price limits are $522,000.

This program differs from previous CalHFA programs in that the partnering with FHA and the CHDAP 2nd, buyers only need to have 1% of their own money available for the down payment.  This makes a substantial difference.  Example; $300,000 sales price... 3.5%= $10,500 1% = $3,000.

You'll want to allow a little longer escrow time since the loans will need to go to CalHFA for final underwriting.  This will not be your quick close transaction.  However, with a little patience you can benefit from some very attractive interest rates.  Additionally, a HUD or Fannie Mae Homeownership Education Class will be required.  The classes vary in cost average pricing is $50.00, a certificate must be provided to the lender.

I know I'm not alone in my hopes that this will bring a lift to lagging real estate sales, and bring back customers that felt "let down" when the tax credits expired.  We have a window of opportunity... Let's make the best of it.  Happy house hunting....