CalHFA Gives Low to Moderate Income Californians More Opportunities to Purchase a Home. CalHFA’s program expansion now offers down payment assistance to non-first time homebuyers.
FOR IMMEDIATE RELEASE
Contact: Brittany Williams
Broadview Mortgage – Katella Branch
Orange, CA – Tuesday, July 15th, 2014 – For over 40 years, the California Housing Finance Agency (CalHFA) has been financially self-sufficient rather than rely on taxpayer dollars. Up until the year 2012, CalHFA was using proceeds of tax-free housing revenue bonds to fund loans, which were subject to restrictions such as being tax free on the condition that borrowers were federally defined as persons who have not owned a home in the past three years. Now, the CalHFA is deploying the use of other options to obtain financing because of the slow movement of the bond market and a lack of first-time homebuyers who meet the federal definition’s criteria. With these efforts, CalHFA is actively seeking ways to remove current obstacles that prevent Californians from becoming homeowners. Broadview Mortgage is proud to be a designated CalHFA lender.
According to a press release by CalHFA, “California’s homeownership rate stands at about 54.5 percent as of the end of the first quarter of this year , according to U.S. Census estimates, a full 10 percentage points below the national homeownership rate. California’s rate dropped from more than 60 percent before the Great Recession”. As a result, CalHFA is lengthening its reach outside to non-first time homebuyers, a market saturated with many low to moderate income earners, and thus providing more Californians with the opportunity to take advantage of the benefits that CalHFA’s affordable financing options offer.
CalHFA’s programs allow the purchase of homes with fixed-rate mortgages and down payment assistance programs. Three of the unique CalHFA opportunities include:
-A first loan of 97% the home value combined with 2nd low or no interest loan to cover 3% for the down payment.
-Access to low or no interest down payment assistance programs, which payments are deferred until the homeowners sell, refinance, or pay off the mortgage.
-A grant of 4% the first mortgage amount to pay for energy efficient improvements to the home as well as federal tax credits that can reduce potential federal income tax liability.
Homeownership is strongly linked to building community in the neighborhood as residents have long-term investments in their homes. CalHFA states that homeownership also fosters “better educational achievement, civic participation, and healthier outcomes…[homeownership is the] cornerstone for our communities and economy”. On top of this, CalHFA programs all require homebuyer education for future homeowners. A past article entitled, “The U.S. Department of Housing and Urban Development (HUD) Sets Plans to Improve Entry to the Housing Market Nationwide in its ‘Blueprint for Access’” discusses the crucial importance that homebuyer education plays in homeownership and the economy as a whole.