9 28-10 nhf - cal hfa - chdap

Educating and Empowering Homeowners to Make More Informed Decisions

Home Buyer Assistance LoansCHF Grant | CalHFA | CHDAPDown Payment & Closing Cost Assistance

We will begin in a momentClass Scheduled to begin at 5:00pm

Homeownership Educator

Scott SchangBranch Manager

Broadview Mortgage Corporation

1-866-667-6724


CHF Grant / CalHFA / CHDAPGetting the most value out of the class• You may type questions in at any time during the

presentation – Chat box on your screen

• Homeownership experts are standing by to answer your questions during the presentation

• This is an interactive learning environment. You will get the most value by having your specific questions answered

• There are no dumb questions!

Write this number down in case of technical difficulty

1-866-667-6724


CHF Grant / CalHFA / CHDAP

Chat on right side of your screen


CHF Grant / CalHFA / CHDAPTopics we will cover

• NFH CHF Homebuyer Grant Program

• CalHFA financing programs qualifying guidelines

• CalHFA FHA Government Loan Program

• California Housing Downpayment Assistance Program (CHDAP)

• Taking the next step – Getting approved



NHF CHF Grant


CHF Grant / CalHFA / CHDAPCHF Platinum Home Buyer Grant

• 30 Year fixed rate mortgage– Rates set and published by NHF – Currently 5%– Rates do not “float” like typical loan programs

• Must Qualify for NFH first mortgage to use Grant– FHA / VA / USDA loan programs only

• Grant equals 3% of the total loan amount– Which may include up front pmi or guarantee fee– Can be for down payment or closing costs

• Maximum Loan Amount– FHA loan limits


CHF Grant / CalHFA / CHDAPCHF Platinum Home Buyer Grant

• Income Limits 120% Area Median Income– Varies by County

• No First Time Home Buyer Requirement– Must purchase owner occupied home

• Minimum Credit Score 620– No risk based pricing

• Subordinate Financing– This program may be combined with approved subordinate

financing when available– CHDAP may also be used with this program

• Must use an approved Direct Lender

• Does not have to be paid back!



CalHFA is BACK!



Qualifying Guidelines


CHF Grant / CalHFA / CHDAPFinancing Programs Qualifying Guidelines

• Eligible Property Types– Newly constructed or existing (previously owned) home– Single family residence (detached)– Five acre maximum– Attached residence (a half –plex that is not part of a

planned unit development (PUD) or Condominium– A detached unit within a PUD– A Condominium or attached unit in a PUD (Check with

lender for eligible condominiums)

• Must be owner occupied if using CalHFA financing– Loan due and payable if home ceases to be owner

occupied

• Home must be located in the State of California



• First Time Homebuyer Requirement– Cannot have owned a “main home” in the past three years– This requirement is waived if home is in Federally

designated “Targeted” LMI area– This requirement is waived if you are a qualified veteran

pursuant to the Heroes Earning Assistance and Relief Act of 2008

• Sales Price Limits– Different programs have different sales price limits– Sales price limits are higher in “Targeted” areas

• Minimum 1% down payment required from borrower’s own funds – Recently reduced from 3%!



• Understanding the Federal Recapture Tax– Under specific circumstances there may be a federal

recapture tax that is assessed and collected on your federal tax return

• Recapture tax would not be paid – – If your household income does not rise significantly over

the life of the loan (generally more than 5% per year), there is no recapture.

– If you sell your home after nine years, there is no recapture.– If you sell your home within nine years, but there is no gain,

there is no recapture. – In other words, to owe any recapture at all, you must sell

your home within nine years, earn significantly more income than when you bought the home, and gain from the sale. All three of these criteria must be met.



FHA Government


CHF Grant / CalHFA / CHDAPCalHFA FHA – Government Loan Program

• Fixed interest rate for the entire loan term– Rates set and published by CalHFA – 4% today– Rate is .125% lower if you use CHDAP– Rates do not “float” like typical loan programs

• Maximum LTV – Loan to Value– 96.5% - FHA Down Payment Requirement 3.5%

• Maximum CLTV – Combined Loan to Value– 102% (subject to mortgage insurance availability)

• Maximum Loan Amount– FHA loan limits


CHF Grant / CalHFA / CHDAPCalHFA FHA – Government Loan Program

• Subordinate Financing– This program may be combined with approved subordinate

financing when available– CHDAP may be used to cover down payment or costs

• Homebuyer Education– Free, on-line homebuyer education course – print certificate

of completion and submit to lender

• FHA Highlights– Non-occupant co-signers are allowed– Minimum Credit Score 620 – not risk based pricing– Government insured Mortgage Insurance– 1% UFMIP financed / .90% MIP


CalHFA FHA / Cal30 / CHDAP

CHDAP


CHF Grant / CalHFA / CHDAPCalifornia Homebuyer’s Downpayment

Assistance Program - CHDAP• CHDAP is a deferred payment, simple interest rate

junior loan

– CHDAP can be used for down payment assistance or closing costs

– May be combined with a CalHFA or non-CalHFA conventional or government first mortgage loan

– May use other down payment assistance loans or grants (with the exception of ECTP) to help in the purchase of the home

– If homebuyer is using a CalHFA first mortgage loan, all additional programs must be CalHFA approved



Assistance Program - CHDAP• Maximum Loan Amount

– 3% of the sales price or appraised value, whichever is less

– Under no circumstances can the CLTV exceed 102% when utilizing any combination of CalHFA first mortgage loans and subordinate loan products or approved programs

– The maximum 102% CLTV also applies to CHDAP loans used with a non-CalHFA first mortgage



Assistance Program - CHDAP• Fixed interest rate for the entire loan term

– Rates set and published by CalHFA – 3.25%– Rates do not “float” like typical loan programs

• Term of CHDAP Loan– Term matches the term of the first mortgage– Payments on the junior loan are deferred for the life of the

first loan

• Minimum Borrower Contribution– Minimum 1% of the sales price required from borrower’s

own funds – Recently Reduced!



Assistance Program - CHDAP• Repayment of the principal and interest on the junior

loan shall be due and payable at the earlier of the following events: – Transfer of title – Sale of the residence – Payoff or refinance of the first loan – Upon the formal filing and recording of a Notice of Default

(unless rescinded)

• Program Restrictions– May not be used with CalSTRS 80/17 per CalSTRS

guidelines– MAY be used with CalPERS FHA 1st & DPA loans


CHF Grant / CalHFA / CHDAPHiring your Real Estate Agent & Lender Team

• The decision to work with a Loan Officer and Real Estate Agent is a decision to hire someone for a professional service it is to be taken very seriously

• Hold your team accountable to high expectations of character, communication and expertise

• A quality home buying team will educate and inform you

• Always avoid pressure tactics and implied urgency

• Make sure your team specializes in the programs that you are interested in to purchase your home


CHF Grant / CalHFA / CHDAPWhat you need to get Pre-Approved

• Income documents you will need to show your lender– Last 30 days pay stubs for all buyers– Last 2 years W2’s for all buyers– 2 yrs tax returns IF non W2 income or expenses

• Asset documents you will need to show your lender– Last 60 days statements for all reserves including – checking, savings, 401K, stocks, bonds

• Tell your loan officer if you plan to use Gift– Incorrectly receiving or documenting gift funds could

cause delays or problems closing on purchase


CHF Grant / CalHFA / CHDAPAbout Broadview Mortgage

• We are a direct Lender that specializes in CalSTRS, CalPERS, CalHFA, CHF, FHA, VA, USDA and Community based down payment assistance programs

• Would like the opportunity to be your lender if you have not already chosen one

• We are more than happy to be your “second opinion” if you are already working with someone

• If you are not working with an Agent, we can recommend a qualified Real Estate Agent in your area that shares our values and expertise


CHF Grant / CalHFA / CHDAPWrap up and Take Aways

• Video & Power point will posted on site later this week

• We will stay online until all of your questions are answered

• Call 1-866-667-6724 to speak with specialist now

• If you enjoy these classes please tell your friends about – www.HomeownershipUniversity.com


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For more information

1-866-667-6724Homeownership Educator

Scott SchangBranch Manager

Broadview Mortgage Corporation

9 28-10 nhf - cal hfa - chdap

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