Here's a great article just published by Central Valley Business Times. See a quick overview below. Read the full story here.
The California Housing Finance Agency (CalHFA) announced this week the launch of a new fixed-rate, 30-year, FHA-insured mortgage program for low- and moderate-income home buyers.
MAKING SENSE OF THE STORY FOR CONSUMERS
- CalHFA provides financing and programs for low- and moderate-income Californians. The program announced this week enables qualified, first-time home buyers in California to receive a 30-year mortgage with a fixed interest of approximately 4 percent.
- The CalHFA program includes upfront mortgage insurance, which is required for most FHA- insured home loans. Borrowers are eligible to use the California Homebuyer's Downpayment Assistance Program, which can provide up to 3 percent of the purchase price of the home for down payment or closing costs.
- In addition to being a first-time home buyer - defined under federal law as not having owned and occupied a home for the past three years - borrowers also must meet income limits, which vary by county and family size. Income limits can be found on the CalHFA Web site at http://www.calhfa.ca.gov/homeownership/limits/income/income-main.pdf.
- Borrowers also must purchase homes within FHA's loan limit and CalHFA's sales price limits. Mortgage loans are limited to $417,000 under FHA guidelines, while CalHFA's sales price limits vary by county.
- Additionally, borrowers must meet the minimum credit score requirements and maximum debt-to-income ratios and complete a HUD-approved home buyer education program. More information about the CalHFA program can be found at http://www.calhfa.ca.gov/homebuyer/programs/30fha.htm.