Are you a first-time homebuyer? Finding the right mortgage can be intimidating. It’s a significant investment to buy a home, and the right mortgage can be a difference of thousands of dollars over the life of the loan. If you happen to live in the state of California, you might be eligible for a CalHFA loan, a 30-year loan with a guaranteed low fixed interest rate designed for low-to-moderate-income borrowers. Learn more about what you need to do to qualify and the different types of loans that CalHFA provides.
For many first-time homebuyers, the down payment on your home loan can be one of the largest hurdles. That’s why CalHFA offers several options for down payment and closing cost assistance, often called a second or subordinate loan. The payments on a subordinate loan are deferred so you do not have to make a payment on this assistance until your home is sold, refinanced, or paid in full – keeping your monthly mortgage payment affordable.
Griffin Funding is an approved broker of CalHFA and can offer the program to any of our borrowers. Check out the different types of zero down payment mortgage programs we can help you secure.
Depending on what kind of mortgage you are looking for, there are several different programs based on your needs, each with its own specifications.
For more information, here is the provided handbook.
CalPLUS with ZIP
This is a package of a fixed-rate mortgage with closing cost assistance.
CalPLUS Loan Terms
CalHFA ZIP is a deferred payment, zero-interest mortgage that is only available when used with the CalPLUS first mortgage program with down payment assistance to cover borrower closing costs.
CalHFA VA
A VA loan with a CalHFA fixed rate. This is a fully amortized 30-year loan that can be combined with the MyHome assistance program. VA loans are meant for veterans and service members.
CalHFA USDA
A USDA loan with a CalHFA fixed rate. This is a fully amortized 30-year loan that can be combined with the MyHome assistance program. USDA loans are meant for homes in rural areas.
Yes. While CalHFA is prohibited from offering refinances, other lenders can offer you a refinance.
By applying for the limited 203(k) loan, you can acquire up to $35,000 for minor remodeling and minor structural repairs.
An FHA loan is a loan guaranteed by the U.S. Department of Housing and Urban Development (HUD) to help first time buyers to buy a home. Low-income families have to put as little as 3.5% down in order to secure the loan. Because they are backed by the FHA, lenders take on less risk when offering these loans.
CalHFA is a program which provides FHA loans for families in California. It not only offers the government FHA loans, but also provides conventional loans backed through private mortgage insurance.
In order to qualify for a CalHFA loan, you must meet several requirements:
To reiterate, you need at least a 640 credit score or higher, and those without credit will not be permitted. However, having a higher credit score may lead to better terms.
As of January 1, 2022, the loan limit for conventional, VA, USDA, and FHA loans of $647,200. CalHFA maximum first mortgage base loan amount on the CalHFA VA is the FHFA High-Cost Loan Limit of $970,800.
Depending on the county, the annual income limit changes. It starts with a limit of $139,00 in several counties such as Del Norte or Stanislaus county, up to an income of $248,000 in counties like Alameda or San Francisco county.
Yes, you do have to repay your CalHFA loan. However, there aren’t standard monthly payments like other types of mortgage loans.
This depends on your circumstance, but if you are looking for your first home and wouldn’t be able to afford a house otherwise, then using a CalHFA loan can provide the assistance you need. If you have any doubts or questions about whether this loan is right for you. You can speak with one of Griffin Funding’s knowledgeable loan specialists who can walk you through any questions you may have and assist you with the application process.
If you are a first-time home buyer from California, getting a CalHFA loan might be your ideal solution. Griffin Funding is a qualified CalHFA loan provider and our lending team is happy to help you secure your first home loan. Apply online today or give us a call at (855) 394-8288 or (855) 651-2871 to get the process started.
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