CalHFA FHA has lowered it’s interest rates .5% last week, which once again puts this program on my radar as a viable and awesome option.
A while back, I wrote a post about how I had lost favor with this program because it was priced out of the market.
With interest rates continue to inch toward historic lows, once again, there are many great options surfacing for home buyers and home owners looking to reduce their interest rate.
CalHFA interest rates do not change very often as is the case with “market” rates. When they do change, however, they usually postion the rates so that they will be competitive for some time.
CalHFA FHA & CHDAP
The California Housing Finance Agency (aka-CalHFA) is the official State of California first time homebuyer program.
The great thing about this program is that they actually offer incentives for buyers that use the CHDAP down payment assistance program.
The interest rate improves by 1/8% when used in conjunction with the CalHFA FHA first mortgage.
CalHFA FHA Good, Bad and the Ugly
The Good: This is a great opportunity for low to moderate income families that need a little extra help qualifying for a home purchase loan.
The Bad: Not everyone qualifies for this program. There are income limits and purchase price limits that must complied with. The income limits for CHDAP are different from the CalHFA FHA so check both links.
You also have to be a first time homebuyer to qualify.
The Ugly: Recapture could be ugly. Recapture means that if you sell or refinance the home within 9 years, there could be a federal recapture tax. I personally have never seen the recapture trigger, but it’s a good idea that you understand the risk.
This is a really good time for home buyers. Interest rates are low. Homes affordability is at an all time high.
If the CalHFA FHA does not seem like it’s exactly what you’re looking for, if you are not a first time homebuyer or if you would like to explore other down payment assistance programs – check out the CHF Platinum Homebuyer Grant.
Questions or comments? Ask your question below – I answer ALL questions 🙂