CALHFA PROGRAM

GOLDEN EQUITY

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Kristina Lee for Loan Pre-Approval 858-245-2502

CalHFA Introduction

04/13/23

Who are they?◦ CalHFA stands for California Housing Finance Agency which

was created by the State Legislature in 1975 to provide affordable financing to low-to-moderate income FIRST TIME HOMEBUYERS.

◦ Created as the state’s affordable housing bank, CalHFA has invested over $14 billion in non-taxpayer funds to help more than 135,000 California families live in a home of their own with a mortgage they can afford.

How is this program funded/financed?◦ The capital used to fund this program is raised through the

sale of tax-exempt mortgage revenue bonds.◦ Bonds are repaid by revenues generated through mortgage

loans, not taxpayer dollars – completely self supported state agency.

State Restriction◦ California properties only

Borrower Requirements

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Topic DescriptionFirst Time Home Buyer

Borrower must be a 1st Time Home Buyer.(Requirement is waived if property is located in a Federally Designated Targeted Area)

Income Limit Have an Annual Household/Family Income that does not exceed Income Limits for the family size and county in which the home is located.

Down Payment Have enough money to cover the down payment (usually 3% - 5%) plus closing costs.To help with this restriction, CalHFA offers Down Payment Assistance programs.

Occupancy Property must be owner occupied for term of the loan or until sold.

Underwriting Meet Credit, Income and loan requirements of the CalHFA lender and Mortgage Insurer.

Eligible Borrowers

Be a U.S. Citizen, a National, or a qualified Alien as defined by the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA).

First Time Home Buyer

04/13/23

Topic DescriptionFirst Time Home Buyer

Defined as a person who has not had an ownership interest in their primary residence (a home in which they lived) during the 3-year period prior to the execution of the loan. Exception:Properties in Targeted areas

Required Documents to prove FTHB

1. Borrower’s Affidavit2. Signed copies of Federal Tax Returns for the previous

3 years A Tax Return Affidavit is required for borrowers that were not

legally obligated to file and3. Signed 4506

TIP

Tax Returns are NOT REQUIRED if property is in a Targeted area.

Tax Returns are REQUIRED if borrower is self-employed regardless of property location

Tax Returns are used mainly to confirm a borrower’s FTHB status. Review Credit Report for past mortgage activity. Review Federal Tax Returns (1040’s) for reported mortgage interest.

Review Schedule A under Interest you paid line item #10.

Targeted Area

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Topic DescriptionTargeted Area?

33 of 58 Counties in CA have targeted areas with LA having almost ½.

Areas that are considered targeted areas by the Federal Government were identified in the 2000 Census as communities in CA where:70% or more of the families earn 80% or less than the

statewide median incomeNeighborhoods experiencing chronic economic

distress per IRS code of 1986.

Benefits of Buying in a Targeted Area?

First Time Homebuyer requirement is waivedFTHB still applies to Down Payment Assistance

ProgramsHigher Income Limits – Extends opportunities to more

borrowersHigher Sales Price LimitsTax Returns are not required except for Self-

Employed borrowers

CalHFA Targeted Areas Census Tract Locator

Sales Price Limits

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CalHFA maintains Sales Price limits that compare favorably to the Median Sales Price for each County in most cases. See samples below – March ‘08 CalHFA Sales Price

Limits vs. August ‘08 Median Sales Prices:CalHFA Sales Price Limits (Mar. 08) vs. Median Sales Price (August 2008)

(Non Targeted Resale areas)

County CalHFA Sales Price Limits (Mar. 08) Median Sales Price Est. (August 08)

Fresno $381,250.00 $210,000.00

Kern $368,750.00 $180,000.00

Los Angeles $729,750.00 $380,000.00

Orange $729,750.00 $440,000.00

Merced $472,500.00 $150,000.00

Riverside $500,000.00 $247,000.00

San Bernardino $500,000.00 $215,000.00

San Diego $697,500.00 $347,000.00

Sacramento $580,000.00 $210,000.00

Stanislaus $429,619.00 $185,000.00

Tulare $325,000.00 $185,000.00

Often New Construction Sales Price Limits and Sales Price Limits in Targeted areas are substantially higher than the Non-Targeted Resale Limits. Source: www.calhfa.ca.gov March 2008 & California Association of Realtors Sales Reports for August 2008

CA Median Sales Price Comparison

04/13/23

CA Median Home Price Comparison

Comparison Chart (February 2008 – August 2008)

(Non Targeted Resale areas)

County August 2008 July 2008 June 2008 May 2008 April 2008 February 2008

Fresno $210,000.00 $217,250.00 $219,000.00 $220,000.00 $237,250.00 $250,000.00

Kern $180,000.00 $190,750.00 $205,000.00 $210,750.00 $215,000.00 $230,500.00

Los Angeles $380,000.00 $400,000.00 $415,000.00 $420,500.00 $435,000.00 $460,000.00

Orange $440,000.00 $460,000.00 $470,000.00 $485,000.00 $505,000.00 $520,000.00

Merced $150,000.00 $155,000.00 $160,000.00 $176,000.00 $186,000.00 $225,500.00

Riverside $247,000.00 $260,000.00 $275,000.00 $287,250.00 $294,000.00 $325,000.00

San Bernardino $215,000.00 $229,750.00 $239,500.00 $250,000.00 $265,000.00 $290,000.00

San Diego $347,000.00 $365,000.00 $370,000.00 $380,000.00 $400,000.00 $413,500.00

Sacramento $210,000.00 $210,000.00 $219,500.00 $225,000.00 $232,000.00 $254,000.00

Stanislaus $185,000.00 $190,000.00 $201,000.00 $214,500.00 $225,000.00 $250,250.00

Tulare $185,000.00 $193,000.00 $187,250.00 $199,500.00 $196,000.00 $216,500.00

Often New Construction Sales Price Limits and Sales Price Limits in Targeted areas are substantially higher than the Non-Targeted Resale Limits. Source: California Association of Realtors 2008 Sales Report

No Down Payment? No Problem!

04/13/23

Recently awarded funds Awarded by CalHFA to various Cities,

Redevelopment Agencies, etc. for Down Payment Assistance Programs for Homebuyers :

Down payment Assistance Programs:

Because CalHFA funds are from MRB, any Subordinate Financing behind a 1st must be from a Non-Profit Redevelopment Agency, City or County Govt. (Locality).

CalHFA offers several different down payment assistance programs. These funds can be used towards down payment or cover closing costs.

Payments are deferred meaning you don’t have to pay it back until you sell, refinance or pay in full.

Highlights of the Program

04/13/23

Up to100% Combined Financing available with NO down payment required

2nd & 3rd Mortgages can cover Down Payment & Closing Costs CLTV’s up to 102% Loan amounts above agency limits (Up to $754,134) DTI to as high as 55% Gift funds OK for Reserves Below market interest rate on 1st mortgage loan First Time Homebuyer restriction waived when property is

located within a Federally designated Targeted area (certain restrictions apply)

Call Kristina Lee for loan pre-approval 858-245-2502