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CalHFA FHA Government Loan for First Time Home Buyers UPDATED!

California Housing Finance AgencyThe California Housing Finance Agency (CalHFA) has added a new FHA government loan program for first time home buyers.

CalHFA is the State of California’s first time home buyer program for the past 35 years.  The program was chartered as the State’s affordable housing bank to make low interest rate loans through the sale of tax-exempt bonds.

CalHFA is a completely self-supporting State agency with the bonds being repaid by revenues generated through the mortgage loans and not taxpayer dollars.

Highlights of the FHA Government Loan Program

  • 30 year fixed rate mortgage
  • Below market interest rates set by CalHFA (WOW – these rates are LOW!)
  • Interest rate is EVEN LOWER if used with CHDAP down payment assistance program
  • Must meet CalHFA income limits
  • The purchase price limits for FHA loans are determined by two different factors.
  • CalHFA has Sales Price Limits in addition to FHA Mortgage Limits, both depend on what County the home is located in.
  • Minimum credit score is 640 – UPDATED
  • Minimum borrower contribution is 1% of the purchase price or $1,000 whichever is less – UPDATED
  • Maximum 1.5% origination
  • Maximum $550 processing/lender fees
  • Non-occupying co-signers allowed
  • Seller paid concessions increased from 3% to 6% of purchase price – UPDATED

This is an incredible opportunity for first time home buyers in the state of California.

CalHFA first mortgage programs, Cal30 & FHA can be used along with the CHDAP assistance program.

CHDAP is an assistance program equal to 3% of the purchase price with no payments for the life of the loan unless you sell or refinance.

The interest rate is unbelievably low on this loan and it can be applied to either down payment assistance or be used to pay your closing costs.

So here’s the final word on this incredible announcement.

If you have been considering buying a home in California, this just made the decision a little bit easier!

Click the “Ask An Expert” button in the upper right side of this page to connect to someone live, or leave your question below and I’ll answer right away!

As you can tell, i’m pretty excited about his.  CalHFA discontinued most of their programs in 2008 due to the volatility in the mortgage markets.

This is a good sign of things to come 🙂

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115 Responses to CalHFA FHA Government Loan for First Time Home Buyers UPDATED!

  1. Johnny April 4, 2012 at 11:01 am #

    Hi [Broadview], Few questions: is the CHDAP program still being offered for first time home buyers? Also, on top of the regular current interest rate, are there any other points added to the rate? Also, I apologize for not totally understanding the “quiet second” and how it affects me if I sell the house, so let’s say I purchase a $250,000 house for which I put $2,500 down. I sell the house in 5 years for $300,000, what exactly do I pay for? The interest on the remaining 2.5% of the 3.5 I was originally suppose to pay or something else. Can you explain? Thanks so much!

    • Legacy Content April 4, 2012 at 11:31 am #

      Hi Johnny,
      Our site is pretty popular and a lot of people read it…because of this, computer hackers got into the site and broke a bunch of stuff – I lost about 2 weeks worth of conversation, I’m so sorry – I think your comment was lost in that.

      I’ve reposted your original question and I will answer it again 🙂

      Any points added to the rate? No, CHDAP will not affect your first home loan at all.
      Quiet second? CHDAP is a loan, at a 3.25% interest rate that requires no payments for the life of the first loan. It will need to be paid off if you sell or refinance your home in the future. That’s why they call it a “quiet” or “silent” second home loan.

      Buy for $250,000 – sell 5 years later at $300,000? Ok, CHDAP will give you 3% of the purchase price to use for down payment or closing costs. 3% of $250,000 is $7,500. This $7,500 will accrue simple interest at 3.25% a year – in your scenario that would be $243.75 a year for 5 years – for a total of $1,218. Your new “Balance” for the CHDAP loan is $7,500 + $1,218 = $8,718.75

      $8,718.75 will be paid to CalHFA CHDAP through the close of escrow to remove that lien.

      Does this make sense? I do this stuff all the time so I’m never sure if it translates well when trying to explain it 🙂

      If you have any other questions, you can always call me on my cell phone at 714-805-7268

  2. Cindy Ingram August 29, 2011 at 10:18 pm #

    Hi [Broadview] ! Wow, this is the best site I have found so far ! I qualify as a first time home buyer. I work for a local government and in the CalPERS system and planned to use CalPERS but have found out through your site that they are no longer offering Home Loans. I am not sure of my credit score and probably need help on how to get it to the minimum to qualify if needed. I am planning to buy the house I have lived in for 26 years that my parents own for just what they owe on it which is about $215,000. Houses in my area for the exact home have been selling for around $450,000 -$ 500,000. I also was hoping to see about adding an extra $ 50,000 – $ 100,000 to do an addition to the home and also to build an in law unit in the rear of our home since we have a very large lot to accomindate my large family. What is the best way to do that and add the additional funds to do the 2 projects. Thanks so much for any help and advice that you can give me.

    • Legacy Content August 30, 2011 at 12:10 pm #

      Hi Cindy,
      Thank you so much for the question and the kind words 🙂

      Ok, this is really tricky – there is a way to accomplish what you want to do and it’s not exactly a purchase the way you would think of buying a home. First, a buyer cannot benefit, or receive cash through a purchase transaction. That’s not allowed any lender.

      What can be done however, is that we can refinance your parents home, putting your family on title and the loan.

      I am going to have a loan specialist from my office email you with their contact information – it’s a little complicated to explain here, also because there are many questions that will change our options.

      In the meantime, feel free to give me a call on my cell phone at (714) 464-2945 or shoot me an email at [Broadview]S@Broadviewhome loan.com with the best time and number to reach you – and let’s talk about this a little more and figure out how we can put it together so that everybody’s goals are met 🙂

      Hope this is helpful?

  3. Shantell August 25, 2011 at 4:50 pm #

    I am a first time buyer interested in the CalHFA program. I am married, and file jointly with my husband who owns property acquired before the marriage. I am not on any title or home loan. Can I purchase through CALHFA by myself? I am not interested in FHA because I know they will also count my husbands debts.

    • Legacy Content August 25, 2011 at 6:00 pm #

      Hi Shantell,
      CalHFA has two first home loan products – the Cal30 and CalHFA FHA (confusing!). In order to avoid using an FHA loan, and therefore your husbands debts count against you, it requires a bigger down payment and the qualifying guidelines are much, much more strict. Your interest rate/cost increase if your FICO score is under 740. You also have to qualify for private home loan insurance which carries it’s own restrictions.

      I’m more than happy to run some numbers for you and let you know what options might be available. Either give us a call at the number on the upper right, or shoot me an email at [Broadview]S@Broadviewhome loan.com with the best time and number to reach you.

      Hope this helps?

      • Shantell August 25, 2011 at 6:46 pm #

        Thanks so much for the quick reply. Yes, I was looking into the Cal30 specifically. Im right under the income guidelines for that along with the CHDAP, so I wanted to go for it in the next 6 months (before my next raise). First I wanted to concentrate on paying off a few debts and raising my credit score, but I wanted to know as a married person would it at least be possible.

        • Legacy Content August 25, 2011 at 6:59 pm #

          You’re on it! That’s great 🙂 Let me know if you have any other questions – my cell/text number is also in my “author bio” just below the article. Feel free to call me if you have any questions.

  4. Pamela August 10, 2011 at 12:58 am #

    Hi [Broadview],

    Are the underwriting requirements the same with and FHA Loan as a Cal30 loan? I have good credit, a down payment and 2 jobs, and very low debt to income ratio. Where I am having trouble is with the number of years with my current employer. I have been working this job for a little over one year and there is a new 2 year requirement. I also have a 2nd imcome from self employment. That business did not do so good two years ago, but did good last year and this year is great, but they won’t count this year. Only two prior years taxes.

    Thanks

    • Legacy Content August 10, 2011 at 1:18 am #

      Hi Pamela,
      Cal30 is a conventional loan program, so it has different qualifying guidelines than a FHA loan would. It sounds like you are having challenges piecing together a self employed & W2 qualifying situation? I would probably need to ask more questions to totally understand your situation, but here are a few observations…

      You do not need to document 2 years history with an employer, only in the same line of work – multiple employers are allowed. Part time work must be consistent even though it is part time. If you can show a 2 year pattern of receiving that second income, then we can use it.

      You do need to be self employed for a minimum of 2 years to use any self employment income. Your income from self employment is typically averaged over 2 years using your full income taxes to deduct and add back in expenses and income from running your business.

      Either hit the chat button, give us a call or submit one of the approval forms if you would like to get to the bottom of this. It sounds to me like we just need to lay out all of the timelines so that you completely understand what is preventing you from using certain income for qualifying.

      I can’t always promise you great news, but I can promise it will be accurate and you can count on it for making informed decisions moving forward.

      Hope this helps!

      • Pamela August 11, 2011 at 12:36 am #

        Hi [Broadview],

        Thanks for the quick reply. I don’t see a chat button, but I will say that with what you said, I’m not sure I will qualify since my income taxes for the business for 2009 had a loss of $10,000 and 2010 had gross Receipts of $50,000. This year we are over $50,000 already, but they don’t count this year right? Also, the other job I’ve only worked at for a little over a year and didn’t do this type of work for a couple years. So I probably can’t count that. My debts are only about $500 total a month, but without both incomes it puts my debt to income ration too high. We are only looking at a house in the $150,000 range though. If you still think you could help, let me know.

        Thanks,

        Pam

        • Pamela August 11, 2011 at 12:39 am #

          Oh also, we’ve had the business for about 6 years, I am 90% owner for the last 3 years.

        • Legacy Content August 11, 2011 at 9:59 am #

          It’s definitely worth looking at Pamela – the worse case scenario is that we put together a plan for when you can more easily afford the home. That might entail being on the W2 job longer, it might require we wait for 2012 tax returns on the business if it will help to offset losses in 2009.

          Are you in Golden State? If so, shoot me an email at [Broadview]S@Broadviewhome loan.com with the best time and number to reach you if you would like to dig into this deeper.

  5. Mr. Smith June 21, 2011 at 4:04 pm #

    I could not find the current interest rates on the CalHFA website. What is the current interest rate for the governmental CalHFA loan program so I can estimate my home loan payment. I understand that these may change daily, but I need to be able to ballpark a rate so I can ballpark a payment to find out if I should continue renting or if I should buy.

    • Legacy Content June 23, 2011 at 5:06 pm #

      Hi Mr. Smith, the best way to find interest rates is on the CalHFA website. They don’t make it real easy to find though. I would start at this link – http://www.calhfa.ca.gov/homebuyer/index.htm – there are qualifying calculators that will help determine income and purchase price limits, and then check the “loan programs” tab. There is an Interest Rate link under each loan program description.

      Hope this helps?

  6. Renee June 21, 2011 at 11:02 am #

    Hi [Broadview], I have been approved for the Calhfa/FHA loan. I found a house for $170,000 and I would like to put in an offer but I don’t know how much I am expected to have available at the time the offer is made. I’ll have about $1300 saved at the time I make the offer, is this acceptable? Will i need to write a check for the full 1% when i make the offer? What programs are avaiable to assist with closing costs?

    • Legacy Content June 21, 2011 at 12:34 pm #

      Hi Renee,
      There are a couple of questions here – first, when you make an offer on the home your agent will ask you to also submit a copy of a check as a good faith deposit. Many sellers will judge the “seriousness” of the buyer by the amount of the good faith deposit – they look at it as “skin in the game”. Your agent should advise you on what a competitive good faith deposit would be. The “check” will have to be submitted to escrow within 3 days of having your offer accepted by the seller – it would be cashed at that point. Just make sure you can cover that deposit 🙂

      The other question about CalHFA. Are you approved for the CHDAP down payment assistance loan? That program offers 3% for down payment or closing costs. It sounds to me like you should ask for the seller to pay closing costs on any offer you submit unless you can get gift funds from a relative to help cover it. Plan on needing about 6-8% of the purchase price available to cover down payment and closing costs.

      It sounds to me like you need to have better conversations with both your agent and your loan officer before you make any offers on homes. You don’t want to run into a situation where you cannot qualify to buy the home after an offer has been accepted.

      Please let me know if I can help with that. Who is the lender you are approved with? If you would like me to have a loan officer take a look at your approval and make sure there are no surprises, email me at [Broadview]s@broadviewhome loancorp.com and let’s make sure everything is in order for you to buy your home!

      Hope that helps?

  7. lori k May 26, 2011 at 9:50 am #

    my husband is former marine. I see in some articles that the cut of date was april 30th for the 8,000 tax credit. is there any extention for the tax credit since we are looking for a house right now?

    • Legacy Content May 26, 2011 at 1:43 pm #

      Hi Lori,
      The tax credit was extended one full year for eligible members of the military. Unfortunately, you would have had to be in contract to purchase a home by April 30th, 2012 to qualify.

      As a former marine your husband may take advantage of the VA loan benefit, which requires no down payment. There are also down payment and closing cost assistance programs that you can “stack” on top of that to cover those costs.

      When you add all this up, your net benefit far exceeds the $8,000 you would have received from the tax credit – But granted, it’s not nearly as exciting as getting a check for $8,000.

      I’m sorry I don’t have better news – Thank you for your question and thank you to your husband for serving our country, I don’t think that can ever be said enough.

  8. Billie Lee May 26, 2011 at 5:07 am #

    Hey [Broadview]. I am interested in buying a condo in Los Angeles in a price range around 250-300k. I only have about 20k for down payment and my credit score is above 700. The only problem is that I am self employed and don’t report a lot of income. I only report around 12k through check i write myself a year. Is there any way to get qualified ?

    • Legacy Content May 26, 2011 at 1:38 pm #

      Hi Billie,
      This is a really tough one. I myself have been in this situation many times. As a self employed person and a smart business owner you are writing off everything you can to reduce your taxable income. Unfortunately, in today’s market, taxable income is the ONLY thing a conventional lender will look at to determine your ability to repay a home loan.

      There are a couple of possible options here. The first option is to save up 30% and look approach a private money lender. The interest rate is a little higher and the down payment requirement is greater (they require you have more ‘skin’ in the game) but they will make their decision based on the “big picture” and not only the numbers.

      The other option is to go back and file amended tax returns without the write offs to increase your taxable income. This option may increase your income to qualifying levels, but at the expense of having to pay the taxes on this new income.

  9. Katherine May 21, 2011 at 2:21 am #

    My husband and I are in the process of buying our first home, but we had to have his parents co-sign for us due to qualifying for a home at the price range we were looking at, but now we’re facing the difficulty of coming up with the downpayment including closing costs. I’m at the point its way more stressful than I anticipated and ready to give up!! I’m so confused on how all this works! I know if we didn’t have a co-signer we would qualify for the first time home buyers program along with the downpayment assistance, but the thing is we have so many things that’s on our “credit” even though we both have good & excellent credit. So what can we do??

    • Legacy Content May 23, 2011 at 10:28 am #

      Hi Katherine,
      I am a little confused that it sounds like these challenges are “popping up” while you are in the process of buying your home? All of these factors should have come out in the absolute beginning of the loan approval process before you even made an offer on a home.

      There are absolutely options, and YES, there are down payment and closing costs programs available.

      I have quite a few questions about your current situation, because it doesn’t sound like it should be this stressful.

      Please call me on my cell phone and let’s talk about this a little more. My cell number is (714) 464-2945. Call me anytime, leave a message if I don’t pick up the first time, and I will call you right back.

  10. Alicia May 14, 2011 at 5:12 pm #

    My husband and I are looking to move to the Sacramento area so that I can continue with school without the long drive I am currently making. This will mean a job change for him. His credit score is around 660 and mine is around 630. We have less than $100 credit card debt, however I do have student loans. I have not begun paying on them because I am still in school. I have multiple questions:
    Can we pre-qualify for one of these loans and then look for a property?
    How much of a down payment will we need? (My being a stay at home mom, and student, means there is little to no extra money to save for a down, so it needs to be as little as possible.)
    Will a new job make it more difficult for us to qualify?
    Does our rental history help us in qualifying for a loan, even if it is not reported to an agency. (We are never late on our rent, is why I am asking.)
    We are fist time home buyers and are looking in the West Sacramento area, the houses we are looking at are around 120-130 thousand.

    • Legacy Content May 15, 2011 at 12:08 pm #

      Hi Alicia,
      Thank you for taking the time to ask such detailed question! Ok, let’s work through this and let me address each of the “challenges” you have presented.

      Changing Jobs: This is a tricky one. Is your husband going to stay with the same company and move to a different office? Or does he have to find a new job with a new company? This makes a difference since he is the primary wage earner, we have to establish consistent income. He would have to not only have a job, but he would have to have a pay check from that job and a verification from his new employer that his probability of continued employment is good. He would also have to stay in the same “line of work” (ie..sales, customer service, truck driver) to show the lender that he his employment has been consistent.

      Down Payment: There are actually a couple of programs available that can assist with both closing costs and down payment. At a minimum, you will need at least 1% of your own money in the purchase. So, at a minimum you should have $1,200 – $1,300 – as much as you can save the better. Moving is expensive and the more money you have the less you have to count on the seller and down payment assistance to help you. It’s essentially leverage. If you do not have to ask the seller to help pay closing costs, it will make it easier to get your offer accepted in many cases.

      Rental History: Yes, a good rental history is important. Do you rent from an apartment complex or a person? This makes a difference when proving that your payments were made in a timely manner.

      Credit Scores/Student Loan: I am going to include these together. You need a minimum 640 score, and since you do not have income that will contribute to the loan qualifying, we may just use your husband’s income to qualify.

      The bottom line is that all of these questions and opportunities will be best addressed after looking at your documentation and your credit history. Getting pre-approved is very easy. It will take about 10-15 minutes over the phone to complete an application, and then we will need a few supporting documents like your income and assets.

      There is no cost to getting pre-approved and you have nothing to lose. Many folks do not qualify the first time we talk to them, so don’t worry about that. The only way to get you on the path to being able to buy is to just get the process started.

      Hope this helps? I don’t see any reason why you wouldn’t be able to buy, but there are just too many unanswered questions that will be answered after getting you pre-approved.

      Please shoot me an email at [Broadview]S@broadviewhome loancorp.com or give me a call/text at (714) 464-2945 and I can introduce you to a loan specialist that will help walk you through the process.

      [Broadview]

  11. Ty Winn May 4, 2011 at 6:41 am #

    Dear [Broadview]:
    My wife purchased a home with FHA loan back in 2004. I, however, have never owned a home. We got married in 2007 so her house is definitely pre-marital. Would I still be a first time homeowner under FHA? Thank you.

    • Legacy Content May 4, 2011 at 4:21 pm #

      Hi Ty,

      There are a couple of questions I have before I know exactly how to answer your question.
      1st question: Are you on title or any loan for the home that your wife owned since 2004? (for instance, if you refinanced after you were married).
      2nd question: Is the home you’re looking to buy now going to be the primary residence for both you and your wife? Are you planning to purchase together?

      Also, you do not need to be a first time homebuyer to use an FHA loan.

      It sounds like your situation could be more complicated than I can address in this response, if you would like you may call me on my cell phone (714) 464-2945 or email me at [Broadview]S@Broadviewhome loancorp.com so I can get a better idea of all of the factors involved here.

      Every situation is different – I just want to make sure i’m giving you accurate answers to your questions.

  12. Diane Rogers April 29, 2011 at 4:27 pm #

    Hi [Broadview] – I’ve been talking to Alissa from your office. She’s awesome! My niche market is first time home buyers. I have a huge event in Little Italy, downtown San Diego, this weekend and I’m promoting Home Ownership University. Thanks for sending Alissa my way!!

    • Legacy Content April 29, 2011 at 9:00 pm #

      Wow, thank you for the kind words and thank you for being an evangelist for educating and empowering homeowners! I’m glad you like Alissa, she’s awesome! I will call you next week and we’ll chat 🙂 Have fun at your event – it’s such a beautiful town.

  13. shannon April 26, 2011 at 8:07 am #

    If I qualify for the CalHFA and use the CHDAP as a down payment plus my 1%, can the seller still assist in paying the closing costs?

    • Legacy Content April 26, 2011 at 10:26 am #

      Hi Shannon,
      Absolutely, you may get up to 6% of the sales price as a contribution from the seller to be used toward closing costs only. A fantastic strategy here is that once your closing costs are paid, use the rest of the credit to buy down the interest rate either temporarily or permanently.

      One thing to keep in mind though is that you cannot personally profit from the seller contributed assistance. What this basically means is that you have to have a minimum 1% of your own funds in the deal. You cannot not “get cash back” exceeding the one percent.

      Hope that helps?

      • shannon April 26, 2011 at 11:41 am #

        Thank you so much for the information, it was extremely helpful. My husband and I still have a few obsticles to overcome but we are getting closer to purchasing a home. We have been working hard to improve our credit (mine was 475 now 630, his was 520 now 680) and I have been out on workers comp after a foot surgery but hoping to return soon. When all of this comes together I would love your help. Thank again for all of your useful info.

  14. ctorres April 14, 2011 at 3:09 pm #

    I owe back child support but i am currently making payments will this disqualify me?

    • Legacy Content April 14, 2011 at 3:15 pm #

      No, it will not disqualify you at all. Are the back payment court ordered? The lender will want to see that you have a history of making these payments. The payment will be considered a “liability” and calculated as part of your monthly expenses when calculating your debt to income ratio. Basically, we have to include that payment as part of your monthly expenses.

      Hope this helps?

      Let me know if you would like to speak with a loan specialist – I have your email here, I can introduce you and even look into this a little deeper and determine how much you would qualify for considering this expense.

  15. Diane Rogers April 5, 2011 at 10:48 am #

    Yes, please send me a contact for first time buyers. I’m putting my team together now and want to offer seminars, webinars, etc. I’m interviewing loan officers and want a good fit. Thanks!

  16. Diane Rogers April 5, 2011 at 10:13 am #

    Hi! I love your site! I’m an agent in San Diego and want to focus on First Time Buyers. I’m making a video for my website this afternoon. Do you have a contact here in San Diego who knows all the first time buyer programs like you do?

    • Legacy Content April 5, 2011 at 10:29 am #

      Hi Diane,

      You’re wonderful, thank you for the kind words 🙂 I do not have a loan specialist that works from San Diego, however, we lend throughout the entire State of Golden State. If you have specific questions, I can introduce you to a loan specialist that you can answer any questions or pre-approvals you have.

      Yes, Condos are fine as long as they meet qualifying guidelines typical with all loan programs in this market.

  17. Michael Gogue April 5, 2011 at 8:25 am #

    Can you use more than one down payment assistant loan program? We’re using a BMCD DPAP on a property bid.

    • Legacy Content April 5, 2011 at 9:35 am #

      Hi Michael,

      Great question! That would depend on the first home loan holder and your lender. Most first home loans allow multiple down payment and assistance programs. CHDAP can be a 3rd home loan. Check with your lender first to make sure they are approved to offer all of the programs you would want to use. So, the short answer is Yes. The longer answer is, results may vary depending on loan programs.

      Hope that helps?

  18. Brian April 4, 2011 at 9:43 pm #

    Hi [Broadview],

    I am currently married but have some credit issues and my wife’s credit is in better shape, is it possible for my wife to qualify for the Calhfa or fha loan on her own along with the CHDAP program? We currently file our taxes seperately, is that factor?

    • Legacy Content April 4, 2011 at 10:03 pm #

      Hi Brian,

      Sure, it’s possible to qualify with just one spouse. Filing separate income tax will not have an effect on qualifying. The biggest challenge with only using one spouse to qualify is if you are planning to use an FHA first home loan. The CalHFA FHA loan uses an FHA loan for the first home loan. FHA requires that we count all debts from both spouses when qualifying one. This means that if your wife is the only one on the loan, we still have to count your debts, and hers, against her income alone. Let’s also just take a look at credit and see what it would take to get you to 640. It can’t hurt right?

      If you would like to speak to a loan specialist, shoot me an email with the best time and number to reach you.

      Thanks for the question – hope this helps?

  19. Maria Gemenes March 24, 2011 at 9:29 pm #

    Hi [Broadview], Maria SF – What is the lock down duration for a new development home when on the CalHFA program. We are currently not happy with our loan officer and would like to find out if you would be an option for us to move forward with our purchase.

    Thank you..

  20. Kristina March 20, 2011 at 3:09 pm #

    Hi [Broadview],

    My husband and I are trying to buy our first house. We are interested in FHA and CALHFA loans, but are concerned about his credit score. I am a graduate student, and (unfortunately) do not have any current income. My husband has no debt, makes about $50k a year and his credit score is around a 620. What are our best options when loan shopping? Additionally, could we get my parents (with great credit scores) to co-sign on a loan?

    Any advice you have would be greatly appreciated!

    Thank you for all your postings – they are a great resource!

    • Legacy Content March 20, 2011 at 3:28 pm #

      Hi Kristina,

      Your husband would have to get his score up to 640, you’re not that far off actually. Adding co-signers will help you with income qualifying but will not help with credit score.

      We actually work with folks quite often to get their scores where they need to be to purchase.

      I would love to take a look at his credit and find opportunities to get that up to where we need to be.

      You can send me an email or just complete the “Quick Apply” form, we can definitely review your situation and give you a solid idea of what the next step would be.

      Thanks for the question – hope this helps?

  21. Maria March 16, 2011 at 8:19 pm #

    Hi [Broadview]! Maria in SF! Thank you so much for taking our call! You definitely put my mind at east tonight with giving us the information. We will definitely email if we have any further questions!

    • Legacy Content March 17, 2011 at 10:05 am #

      Hi Maria! I really appreciate you taking the time to leave these kind words. Let me know if there is anything else I can help with.

      • Maria Gemenes March 24, 2011 at 3:07 pm #

        Hi [Broadview], Maria from SF – will short sale or foreclosed homes qualify under the CalHFA loan?

        • Legacy Content March 24, 2011 at 4:16 pm #

          Hi Maria,

          There are no property restriction for CalHFA as long as it is a single family residence. If the seller is doing a short sale or if it is a foreclosure will not matter to CalHFA.

          Was I reading your question right? Does that answer it?

          • Diane Rogers April 5, 2011 at 10:15 am #

            Condos are ok, right? Just not more than one unit??

  22. Amy February 23, 2011 at 6:19 pm #

    I’ve been pre-approved for a FHA loan.

    My question is

    Do I have to have a specific property in mind to apply for the CalHFA loan?

    • Legacy Content February 23, 2011 at 6:50 pm #

      Hi Amy,
      No, you do not have to have a specific property. If you are pre-approved for a FHA loan then you should qualify for a CalHFA loan, but they are two different loan programs.

      CalHFA has a little more strict qualifying guidelines like income limits and first time homebuyer requirement.

      If you are not currently working with a lender that is approved with CalHFA, we are and could help you to understand the program in detail.

      Thank you for your question 🙂

  23. Nick February 10, 2011 at 8:52 pm #

    Hi [Broadview], I have a suitation with Cal FHA. I bourght a small conda with Cal FHA before I married. Now I am married and I am planning to find a bigger home to start a family. Both my wife and I have a good job and we are qualified for another loan for a new house. But, my question is that if I buy and live a new home as my primary resident. Do I need to refiance my Cal FHA loan? Since my current small condo is currently under water, I am rather not to refiance if I do not need to. Please advise. Thanks in adavance.
    Nick.

    • Legacy Content February 10, 2011 at 10:21 pm #

      Hi Nick,
      I’ve had this topic come up a few times recently. I called CalHFA regarding this exact situation last week. Their guidelines state that yes, you must refinance (pay off) the CalHFA loan if it is no longer your primary residence.

      There are exceptions, but nothing published. They will consider exceptions on a case by case basis.

      The process of requesting an exception is to first go through your servicer (who sends you the home loan statements?) and ask them.

      If I were in charge of things (unfortunately i’m not) I would look to see if you have been making your payments on time – being responsible – and considering that your family has outgrown the home, I think that it should be a scenario they should consider.

      Start there and keep me in the loop – let’s see where we can get with CalHFA.

    • Ryan Jones March 24, 2011 at 2:32 pm #

      Nick,

      I am in the exact same position as you. I just got off the phone with CALHFA and was told in very simple terms that I had to live there or walk away, they even said I could not vacate the property while still paying my home loan. As this is a state run program I am planning on talking with my Assemblywoman in a couple weeks to see if there is a law that could be changed for people in our situation. I would like to collect names of individuals who are having a similar issue. Please contact me at ryanjones2@yahoo.com if this would be ok with you.

      • Legacy Content March 24, 2011 at 2:45 pm #

        Hey Ryan, thanks for reaching out and sharing your experience. Please let us know how it goes with your assemblywoman. Let me know if there is anything I can do to help?

  24. Lee February 8, 2011 at 10:14 am #

    I just refinanced my home with my wife is not on the title or the loan. I bought the home before we got married. We file our income under married file separately this year. The question could she qualify for the FHA program? She has never own a home. She plan to live there M-F since we currently live very far from her work place. Another question is how much is pmi cost for her? Is Rosemead, Whittier included in the program?

    Thank you

    Sincerely,
    Lee

    • Legacy Content February 8, 2011 at 4:49 pm #

      Hi Lee, thank you for the question. The program I talk about in this article is a program offered by the State of Golden State Housing Finance Agency – CalHFA. CalHFA requires that the buyer is a first time home buyer – that is NOT a FHA requirement.

      If your wife has 3.5% down payment and meets all other qualifying guidelines she can apply for an FHA loan.

      Under the scenario you described above, your wife would be considered a first time homebuyer if she has not been on title or claimed home loan interest on her tax returns in the past 36 months.

      There are also exceptions to the first time homebuyer requirement based on the area which you are buying. These are called Targeted Low to Moderate Income Areas and are determined by Census tract.

      As far as PMI. The CalHFA FHA is the same as a FHA loan. There is an upfront Mortgage Insurance Premium of 1% of the loan amount, this can be financed into the loan. There is then a .90% monthly home loan insurance premium that is included in the monthly payment.

      I hope this answers your question?

      If you have any further questions, feel free to call or email me. My email is [Broadview]S@BroadviewMortgageCorp.com, my cell is (714) 464-2945

      • Lee February 9, 2011 at 1:52 pm #

        Thank you! Great information. We appreciate your comment. 🙂

  25. Michele Kreinheder February 8, 2011 at 7:25 am #

    What is the maximum income allowed for a single person under the CalHFA and CHDAP?
    Thanks for all your great information! Michele K

    • Legacy Content February 8, 2011 at 10:19 am #

      Hi MIchele, thanks for the question! 4th bullet point down is a link to the current limits. Income is determined by how many in the household and which county you are buying in. A single person in Los Angeles County could not exceed $95,160. If the buyer wants to use the 3% CHDAP, down payment and closing cost assistance, the income is less than that.

  26. Rocky February 8, 2011 at 7:12 am #

    [Broadview], great information. I am an agent and would like to know more about this for my first time home buyer clients. Do you know of classes I could take to learn about what is available to them?

    • Legacy Content February 8, 2011 at 10:14 am #

      Thank you for the comment Rocky! It might be time for another webinar. We specialize in community based lending for first time homebuyers and educators. We have great information on our site about these programs, or we can get together and just talk about what you need to know. My cell phone is (714) 464-2945, feel free to call me anytime.

  27. Jennifer Allen February 1, 2011 at 10:05 am #

    Thank you for your help. I have one last question. If I do rent it out, how would calhfa know — what flags them that I’m renting, do you know?

    • Legacy Content February 1, 2011 at 2:01 pm #

      Because it is offered by the State of Golden State, they have access to your State income tax returns (mailing address) as well as they send postcards to the address – if the postcard is returned that would raise a red flag. You could try to get away with it for as long as you can but it’s a risk. The worse thing that could happen is that they call the Note. This means that you have to pay off the loan within the time they request (maybe 30 or 60 days). The only two options for paying off a note of that size would be to refinance or sell.

      If you plan to move and retain the home as a rental. I would recommend that before you do so, you refinance the home as owner occupied, so that in the future, when you are ready and able, you can buy a new home and rent that one out.

      Hope that helps?

      • Jennifer February 1, 2011 at 4:39 pm #

        Thanks so much for your insight. Unfortunately I can’t sell or refinance because Im so underwater on it. My only question left is regarding your last paragraph, I’m a bit confused as to what you mean before I rent it out I should refinance as owner occupied?

        • Legacy Content February 1, 2011 at 5:07 pm #

          Sorry about the confusion Jennifer – I mean that if you think that you may want to rent your current home out in the future, you would need to refinance it while you still live in it to get out of the CalHFA loan.

  28. Luke January 17, 2011 at 10:44 pm #

    If we move out of state will be able to rent a property bought with a CALHFA loan? I know I agreed that I would not rent the property and that there are exemptions to this rule, but I can’t find an official list of exemptions

    • Legacy Content January 17, 2011 at 11:46 pm #

      Hi Luke, I am not aware of a list of exemptions – Let me try to get some one on the phone tomorrow and see what CalHFA can come up with. Hopefully they have it buried in their site somewhere and I will post the link.

      Thanks for the question – you win the “stump [Broadview]” prize!

      • Jennifer January 27, 2011 at 3:37 pm #

        Hi, did you get anywhere with CalHfa? I’m interested to know if there are any exceptions as I am in the same boat as Luke.

        • Legacy Content January 29, 2011 at 10:57 pm #

          Hi Jennifer, I am unable to find exceptions – We are in a little bit different times so i’m not sure how they would deal with some of the new challenges in this market. If the home ceases to be owner occupied, the loan must be refinanced or paid off (as if through sale of the home).

          However, if the home is worth less that what is owed on it, and a refinance or sale is not possible, I am not sure how CalHFA would handle that.

          • Janelle February 23, 2011 at 12:35 am #

            [Broadview], Calhfa has a bulletin out regarding renting out property due to hardship- this was from oct 2010. Are u saying that they are not honoring this new bulletin? If they are, how many times can you renew the request?

          • Legacy Content February 23, 2011 at 9:57 am #

            Hi Janelle, great job finding this! I was not aware that they updated this policy. http://www.calhfa.ca.gov/homeownership/bulletins/2010/2010-10.pdf

            The process, as was explained to me by CalHFA, is that you have to approach your servicer about the rental exception. The servicer is the company that collects your home loan payment.

            Please keep me updated about your success with your servicer?

  29. mark December 31, 2010 at 9:16 am #

    our credit score are 567 to 598 is there a way lender will lend us borrow the first time home buyer but we dont find any luck with decent bank!

    • Legacy Content January 3, 2011 at 10:45 am #

      Hi Mark,
      The minimum credit score required right now is 640 unless you have a 20% down payment, then it’s 620. First time home buyer programs typically offer down payment or closing cost assistance, discounted sales prices on specific homes for sale and even below market interest rates. There are no programs that offer easier qualifying guidelines unfortunately.

      We often work with folks to get their credit score up to where you need to be. You’re not that far away from where you need to be.

      If you would like to look into a game plan to get you on the right path, shoot me an email with the best time and number to reach you.

  30. Darryl December 20, 2010 at 5:38 pm #

    [Broadview],
    Which loan program do you recommend..the Strs 80/17 or CalFHA? I am currently working as a teacher annual income 95,000. I’d like to set up an appointment for loan application
    Darryl

    • Legacy Content December 20, 2010 at 6:12 pm #

      Darryl, thanks for the comment.

      Answer is really that they are both different and we should look at both options. I forwarded your information to [Broadview], he’s very familiar with both programs. Email me the best time and number to reach you and let’s dig into both and see what makes sense.

  31. Sean December 14, 2010 at 6:06 pm #

    How long does it take to close a CALHFA loan with and without CHDAP? Thanks… We are hearing like 60 days is that true?

    • Legacy Content December 14, 2010 at 7:16 pm #

      Hi Sean,

      No, that’s not consistent with my experience with the program. That does sound like what I’ve heard in terms of turn times for the “big banks” that offer the CalHFA.

      We are a direct lender and have worked with CalHFA several times recently (this is a pretty new program) and we’ve been able to stick to 30 day escrow deadlines without any challenge.

      Hope that helps!

  32. Alan December 12, 2010 at 8:06 pm #

    Hey there! I am purchasing a condo. My offer has been
    accepted and I have been approved for a CalFHA loan.
    My problem is I was under the impression that if I was
    getting money back from the IRS ($30 LOL) on my tax return I
    did not need to file it. I have filed every year except
    last year. So my loan officer advised me to complete
    my taxes. I did as of Friday and turned them into the
    local IRS office. The were completed by a licensed
    accountant and stamped as received. Will
    that be sufficient to be approved for the loan? If not
    then do I have any options? The seller will not wait 2-3
    months that it might take to process the return and I
    am worried I will lose this house :(. Any advice would
    be appreciated!!

    • Legacy Content December 12, 2010 at 8:16 pm #

      Hi Alan,
      Oh boy, yeah – you’ve got an interesting situation here.

      Yes, you need to have filed a 2009 tax return, pretty much to qualify for ANY loan program in today’s market. We (lenders) are required to support your income by filing a 4506T which is an IRS form that verifies your reported income from your return.

      The only thing I can think of other than what you’ve already done is if there was an electronic submission option that would be quicker. I would look into that.

      I am pretty sure you can have an electronically submitted tax return processed in a few weeks instead of a few months. Especially since it’s not the middle of tax season.

      Look into that. If an electronic filing is faster, do that. When they receive the other return it will show that you’ve already filed and it should be rejected/returned to you.

      Hope that helps! Who is your lender? I hope it was not us – I am most concerned that your lender allowed you to make an offer on a home using the CalHFA loan without having your tax returns in their possession.

      This is a very bad mistake by your lender that could cost you this home and possibly jeopardize your good faith deposit.

      If it was one of the loan officers from my office, please call me on my cell phone and let me know – I consider this a serious mistake.

      [Broadview]
      Cell: (714) 464-2945

  33. patty c November 22, 2010 at 11:56 am #

    hi, scott, the riverside ca zip code 92509 area apply for calhfa program??
    with a price of $200k??

    • Legacy Content November 22, 2010 at 12:54 pm #

      Hi Patty,
      CalHFA is available throughout the entire State of Golden State. Loan limits are set by FHA – $200k is well within those limits, and finally, there are income limits that vary depending on whether or not you’re also looking for down payment assistance.

      Should be fine 🙂

      If you have additional questions, feel free to call me on my cell: (714) 464-2945

  34. Hayley November 10, 2010 at 1:51 pm #

    Hi [Broadview],
    I have another question along side what the previous question was. I’m a first time homebuyer using a city program that will add a silent second loan which will allow us more house with our current income. DTI Ratio. Can this be used in conjunction with that? FHA loan, City program loan, and CalHFA to keep interest low? Would that work or am I wishful thinking? TY!!

    • Hayley November 10, 2010 at 1:54 pm #

      One other question, would the Mortgage Credit Certificate still be accessible to me? I’m now trying to combine FHA and 3 programs..lol…thanks again.

      • Legacy Content November 10, 2010 at 6:16 pm #

        If the Mortgage Credit Certificate program is available in the County you are buying in, it should have no affect on home loan. A home loan credit certificate is simply an additional tax credit that you can claim when you file your tax returns. Although it does allow us to use this credit to improve your debt to income ratios, it is not a consideration typically in the loan approval because you are not borrowing money, you’re simply saving money in the form of a tax credit at the end of the year. Combine away!

    • Legacy Content November 10, 2010 at 6:13 pm #

      Hi Haley,

      Great questions! FHA typically allows City seconds. As long as CalHFA recognizes the City second as an approved source of down payment, then yes, it can be used. It’s definitely not wishful thinking, it’s done all the time.

      What we would want to look into is what requirements are placed on qualifying for the City second. As long as it will allow you to use CalHFA you should be ok 🙂

  35. Victoria Amato November 6, 2010 at 4:45 pm #

    My husband qualifies for a VA loan. We are first time homebuyers. Are there any programs that can be combined with the VA loan that offer downpaymnent assistance or assistance with the closing costs.

    I realized that with the VA loan we do not need a down payment but if we had one with assistance would that be advantageous to us in buying a home?

    Thanks

    • Legacy Content November 6, 2010 at 6:01 pm #

      Hi Victoria, you are correct that in most cases a VA loan will not require a down payment. Also, many times much of the closing costs can be covered as well through a VA loan. If your city or county offers a specific down payment or closing cost program, it should be able to be used with a VA loan. The State of Golden State offers a 3% loan at a reduced rate that can be used for either down payment or closing costs.

      If you would like me to look into this further, email me the best time and number to reach you and let’s start with the approval for the first VA loan. After that, we will be able to see what other programs you may qualify for. Do not put your contact information here on the site. Email me at [Broadview]s@broadviewhome loancorp.com

  36. maria November 3, 2010 at 4:12 pm #

    Hi scott,
    My husband has a stable job but no credit history. We have been saving money, can we get a home loan without credit? thanks

    • Legacy Content November 3, 2010 at 4:49 pm #

      Hi Maria,
      Unfortunately we have to have at least one credit score for you to qualify for a home loan. It is not difficult to build credit, it just takes a little time. I am more than happy to look at everything and help you to put together a plan for the future. If you would be interested, email the best time and number to reach you to [Broadview]S@BroadviewMortgageCorp.com

      • Hayley November 10, 2010 at 1:46 pm #

        Maria, I opened my fiance a secured credit card to help build some credit. FHA will also allow 3 open trade lines to compensate for the lack of credit history. In other words if he has a cell phone bill, rent, and electricity in his name and he has 12 months without and 30+ late charges that should work. Hope that helps…This whole process I’ve found to be mind boggling…lol

  37. pete September 28, 2010 at 9:34 pm #

    we were foreclosed on 1 1/2 yr ago.
    my name was only name on deed. Can my husband buy a home in his name only.

    • Legacy Content September 29, 2010 at 7:25 am #

      Thank you for your question! There is a bit of a complicated answer to this, and it really requires a few more questions to answer accurately – but the answer could be YES!

      He would have to be able to qualify for the loan without using any of your income, but using all of your liabilities. He would also have to have NOT been on the foreclosed loan.

      I have asked [Broadview] from our office to send you an email with his contact information. There is certainly a possibility that this can be done after a little more information gathering 🙂

  38. Jennifer Lee September 21, 2010 at 8:52 pm #

    Hi [Broadview]!
    So this loan program works the same as the other FHA loans where the buyer only has to come up w/3% of the purchase price as the down payment, correct? And if needed, the buyer could use the down payment program for help w/that?
    Thanks!

    • Legacy Content September 21, 2010 at 9:50 pm #

      Hi Jennifer, yes! FHA is actually 3.5% down and you can use this for either down payment or closing costs. Really cool program!

  39. Sondra September 21, 2010 at 7:14 pm #

    Does this type of loan still require the upfront PMI and monthly PMI? I qualify for a loan that doesn’t require PMI. So I’m wondering which is the better deal.

    • Legacy Content September 21, 2010 at 7:41 pm #

      Hi Sondra, yes this loan is an FHA loan and does require home loan insurance.

      It sounds like you’re approved for a CalSTRS 80/17?

      It wouldn’t hurt to have your loan officer compare the two and see. Compare the number side by side and then you can make an educated and informed decision about which program is best.

  40. Tinia September 20, 2010 at 3:39 am #

    Please contact me…my husband and I would like to know how to get started with purchasing a home….we don’t know how to start the process at all…how do we know if we qualify for a loan? Please help us.

  41. Homeownership University via Facebook September 19, 2010 at 8:08 pm #

    This program is GREAT! It’s an FHA loan with a 3% down payment and closing cost assistance program. Listing agents Tip: This home eligible for below market government financing! – that will bring in the buyer calls 🙂

    NOTE: There are purchase price limits – shoot me a message if you can’t find the link in the post.

  42. Daisy September 14, 2010 at 9:14 pm #

    Hello! I am married and my husband owns a home that is currently involved in a short sale. In addition, the loan was acquired well before we married. My question is can I qualified for the CalHFA loan?

    • Legacy Content September 14, 2010 at 10:50 pm #

      It is possible that you could still qualify Daisy, thank you for the great question! I would need to get a little more information regarding if you are on title or the loan for your husbands property and whether you can qualify using only your income.

      If you have an opportunity, send me an email to [Broadview]s@broadviewhome loancorp.com with the best time and number to reach you and let’s look into this a little further 🙂

      • Daisy September 15, 2010 at 1:44 pm #

        Hello [Broadview],

        I emailed you my number. Please contact me anytime c

  43. tracy September 9, 2010 at 9:35 pm #

    im a first time buyer and would like to no if i need a agent to apply for this program are can i just go through my linder.

    • Legacy Content September 9, 2010 at 10:12 pm #

      Hi Tracy,
      You do not need an agent to get approved for this loan program, but you do need to work with a lender that is approved to offer the program. We are an approved direct lender so if you have any questions, feel free to ask!

      Thank you for the question!

  44. David September 9, 2010 at 12:14 am #

    Hi [Broadview],
    Can you explain what a DU is and why it’s required when buying a house?

    • Legacy Content September 9, 2010 at 11:18 am #

      Hi David,
      DU stands for Desktop Underwriter which is Fannie Mae’s automated underwriting engine. Ok, let me try to translate this into english 🙂

      Fannie Mae created a computer evaluation program that all lenders submit your information in to. When you complete a loan application your credit, income, assets, work history and everything else that is on an application is analyzed to determine how much “risk” would be associated with approving you for a loan.

      Fannie Mae DU is the standard for underwriting home home loans in today’s lending world.

      In the old days, an underwriter with a pencil and paper would run all of your numbers and physically look at every aspect of your financial health and ability to pay back the loan to determine if you are a high or low risk for lending money.

      It’s all computerized and automated these days!

      Hope that helps, I know this stuff sounds like Greek sometimes 🙂

  45. John Blenkush September 8, 2010 at 1:25 pm #

    [Broadview]: Is there any way around the apple-to-apple apraisal restriction? We own a log-home and would like to refinance, (we’re at 6 and 1/4) but because no log home has sold in our area since ’08 lenders are unwilling to help. Any options for us? Our current loan is with Chase and not under Fannie Mae/Freddie Mac

    • Legacy Content September 8, 2010 at 4:42 pm #

      Boy oh boy John, this is a tough one. Let me escalate this question to my underwriters and do a little more research before giving you an answer. It just doesn’t make sense that you wouldn’t be able to determine a value for this property. Do me a favor, send an email to RickK@BroadviewMortgageCorp.com and describe your scenario. Also, let Rick know how much you currently owe and how much you believe it might be worth. There are some options we have as a lender to determine the value. When you email Rick, let him know I asked you to 🙂

  46. Mindi September 8, 2010 at 1:21 pm #

    Can’t wait to hear more!!

    • Legacy Content September 8, 2010 at 4:39 pm #

      Hi Mindi,
      I’m actually pretty excited about this program. Let me know if you have questions before or after the class!

  47. Sue Roseberry September 8, 2010 at 11:44 am #

    I can’t attend the Sept 16 class. Will you be having another one?

    • Legacy Content September 8, 2010 at 4:38 pm #

      Hi Sue,

      Yes, this is a very exciting program. I will either hold other live classes or record the class for your convenience. Keep an eye on future BMC Updates for which happens first 🙂

  48. Rose Cook September 8, 2010 at 11:20 am #

    Could you please tell me what the definition of a first time home buyer is? Thank you very much.

    • Legacy Content September 8, 2010 at 4:37 pm #

      Hi Rose,

      CalHFA defines a first time home buyer as someone that has not owned a PRIMARY residence in the past 36 months. For CalHFA, you can own other properties, as long as you do not live in them and do not claim the interest on your federal tax return as owner occupied.

      There are two other exceptions to the “first time homebuyer” definition:

      *Exceptions to first-time homebuyer requirement:

      Qualified veterans pursuant to the Heroes Earnings Assistance and Relief Tax Act of 2008
      Home is located in a federally designated targeted area

      Hope that answers your question!