For several months now, CalHFA required that at least half of a lender’s CHDAP loans MUST be used with a CalHFA first mortgage. This created challenges because there are certain aspects of a CalHFA first mortgage that do not necessarily make the loan program the best option for the home buyer.
We’ve written extensively about CalHFA, CHDAP and the CHF Platinum Grant program, and even wrote about using the two programs together (this was before it was outlawed) to double your assistance. That option went away….and now it’s back!
CalHFA’s CHDAP program is a “silent second” loan that does appear as a lien on the property, however, there are no payments due until you sell or refinance the loan. The interest rate on the CHDAP program is unbelievably low – Take a look at current CalHFA interest rates
CHDAP can be used for down payment or closing costs. Total assistance is 3% of the purchase price of the home. Example: Purchase price $300,000? CHDAP assistance $9,000
The CHF Platinum Grant is FREE money for home buyers.
If you qualify for a Government (FHA, VA or USDA) first mortgage through CHF Platinum, you automatically qualify for the Grant. The interest rates are set by CHF and tend to be just a tad higher than what you can get in the open market.
The CHF Platinum Grant is calculated as 3% of the loan amount.
Example – This one is a little trickier:
Purchase price $300,000 – 3.5% down payment + upfront mortgage insurance premium financed x 3% (Grant)= CHF Grant Amount: $8,788.50
We love buyer assistance programs, and the fact that these two programs are basically perpetually funded (for now) and always available make these program my all time faves.
If you have any questions about the CHF Platinum Grant or CalHFA CHDAP, drop us a chat, call or leave a message below.