State-Funded alternatives to FHA…CalHFA

A great option to FHA loans, particularly for the “first time” potential home buyer, you’ve got favorable rates, low down payments and fairly liberal underwriting guidelines just like FHA with the CalHFA loan.. 

The California Housing Finance Agency (or CalHFA) has over $19 billion in non-taxpayer funds to help California families buy their first home with affordable payment options. CalHFA offers down payment assistance programs, the funds from which can be used to make your down payment or cover your closing costs. Payments on these loans are deferred so you don’t have to pay it back until you sell or refinance.

Some options let you borrow up to 102% of the value of the home (the additional 2% would go towards your closing costs). And with today’s low rates, you may even end up paying less than renting.

There are restrictions on these programs as they are designed for low to moderate income families. But in higher-income areas of California, the income limits for a household of 4 are up to $107,150! In most cases you must be a first time homebuyer and you may only use the program to finance a 1-unit property.

If you’re concerned with the unsteadiness in the economy, most CalHFA-insured loans include a mortgage protection program for free. That means if you become involuntarily unemployed you can be covered for as long as six months for your mortgage payment of up to $2,500. You pay nothing extra and it comes automatically with most CalHFA-insured loans. How many landlords offer the same protection for your rent???

Call us today and we can find the right program to get you into a home of your own. Given the above options along with FHA, now is a great time to get into a home with little or no cash out of pocket! In fact, with the new extended homebuyer tax credit, you can actually be paid to purchase a home!