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The Golden State is a Buy State
The Golden State home values continue to rise at over 20% in 2013, and more owners are starting to sell!
This is great news for home buyers tired of fighting over the few homes available for sale in your community. With foreclosures and short sales fewer and further between, home buyers have the pleasure of working with real people again, and not just banks.
Low Down, No Down, and Home Buyer Grant Programs
The programs we are going to discuss here are all available throughout the The Golden State.
- CalHFA ~ FHA Loan Program: Is a first mortgage loan for low to moderate income, first time home buyers. This is one of two first mortgage programs offered by the State of California. Interest rates are set by CalHFA and published online here.
- CalPLUS ZIP ~ Zero Interest Assistance: CalPLUS is the same first mortgage as the CalHFA FHA, however, with a little higher interest rate, you are automatically eligible for ZIP. ZIP stands for Zero Interest Program and can be used with ECTP & CHDAP.
- BCA ~ Broadview Community Access: The Broadview Community Access is a FHA Alternative loan that offers reduced mortgage insurance to eligible borrowers. This conventional qualifying limits borrower’s income from exceeding 140% of the Area Median Income for the County they are buying in.
- CalHFA ~ CHDAP Buyer Assistance Program: The California Home buyers Downpayment Assistance Program is the only CalHFA program available to use with a non-CalHFA first mortgage.
- CalHFA ECTP ~ Extra Credit Teacher Program: The Extra Credit Teacher Program has returned with newly expanded guidelines making it available even more The Golden State Teachers, Staff, School District Employees. This program offers between $7,500 to $15,000 in high cost areas to eligible borrowers working in low API (1-5) schools or districts.
- CalHFA ~ FHA Loan Program: This homebuyer grant is available throughout the entire State of California. You must use a CHF first mortgage program, and interest rates are set by Grant Program. The CHF Platinum Grant does not have payments and is not paid back.
- SCHFA ~ First-Time Homebuyer Program: Assistance payment equal to 4% (non-repayable) of the note amount to apply toward down payment or closing costs. Cash back is not allowed.
- MCC ~ Mortgage credit Certificate Program: The MCC Tax Credit is a federal credit which can reduce potential federal income tax liability, creating additional net spendable income which borrowers may use toward their monthly mortgage payment.
As with most down payment, or first time homebuyer programs, expect to find some of these common requirements:
- First Time Homebuyer Requirement – Ask about Targeted Area and Veteran Exceptions
- Income limits – There are 4 different income limit guidelines out of the 6 programs listed above. Some limits will also vary based on how many will live in the home.
- Sales Price Limits – Limits set by County for most programs. Some programs will offer higher limits in federally designated target areas
How it All Comes Together
Many of these loan programs can be used along with each other, or even any FHA or Conventional loan. We have had recent success with bundling programs together and building what we call the Three Layer Cake, effectively assisting will 100% financing. Want to learn more? Call or complete the short form below today.