a complete guide to calhfa first time homebuyer programs - cal30 & chdap

Where homeownership education takes flight!

A Complete Guide to CalHFACal30 & CHDAP Programs

Thank you for attending

We will begin in a momentClass Scheduled to begin at 10:00am

Homeownership Educator

Scott SchangBranch Manager

Broadview Mortgage Corporation

1-866-667-6724


A Guide to Cal30 & CHDAP

Purpose and Goals of this Class

• Educate and Empower first time homebuyers by explaining special programs that are available

• Explain CalHFA first time homebuyer guidelines – AKA - “CHAFA” – phonetic spelling

• Keep you informed of new home buyer programs as they become available

• Discuss the practical application of these programs to assist in the purchase of your first home



Topics we will cover

• An introduction to the California Housing Finance Agency – State First Time Homebuyer Program– How CalHFA has changed with the market

• CalHFA financing programs qualifying guidelines

• A Complete Guide to the Cal30 Conventional Loan Program

• A complete guide to the California Housing Downpayment Assistance Program (CHDAP)

• Challenges and opportunities with CalHFA first time homebuyer programs



Getting the most value out of the class

• You may type questions in at any time during the presentation – Questions 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

• The only dumb question is the one you don’t ask

Write this number down in case of technical difficulty

1-866-667-6724



An Introduction to CalHFARe-printed from CalHFA website – www.CalHFA.ca.gov/about/

• For over 30 years, California Housing Finance Agency (CalHFA) has supported the needs of renters and first-time homebuyers by providing financing and programs that create safe, decent and affordable housing opportunities for individuals within specified income ranges

• Established in 1975, CalHFA was chartered as the State’s affordable housing bank to make low interest rate loans through the sale of tax-exempt bonds

• A completely self-supporting State agency, bonds are repaid by revenues generated through mortgage loans, not taxpayer dollars.



How CalHFA has Changed with the Market

• CalHFA “temporarily suspended” loan programs in September 2007

• Programs that were suspended include – Conv/FHA– 30 Year fixed– 35/5 – 35 Year fixed / 5 Year Interest Only– 40 Year fixed

• Down payment assistance programs– CHAP – 3% Down payment only – Lower income– CHDAP – 3% Down payment or closing costs– ECTP – Extra Credit Teacher Program - 3%– HiCAP - Up to $15,000 down or closing costs

• Discontinued CalHFA Mortgage Insurance Program– PMI required over 80% LTV – Strict qualifying guidelines



Financing 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– See link on “tools & resources” page

• Sales Price Limits– Different programs have different sales price limits– Sales price limits are higher in “Targeted” areas– See link on “tools & resources” page

• Minimum 3% down payment required from borrower’s own funds – Cannot be gift funds

• 2 months PITI reserves required for all loans




• 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.



Cal30 – Conventional Loan Program

• Fixed interest rate for the entire loan term– Rates set and published by CalHFA– Rates do not “float” like typical loan programs– See “tools & resources” on site for link to rate sheet

• Maximum LTV – Loan to Value– 95% (subject to mortgage insurance availability)

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

• Maximum Loan Amount– Fannie Mae conforming loan limit– High balance loan limits not available for this program– See “tools & resources” on site for link to area loan limits



Cal30 – Conventional 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

• Private Mortgage Insurance required– Must meet PMI eligibility guidelines which take precedence

over any CalHFA qualifying guidelines– Only Radian Platinum members will insure over 90%– Radian Platinum only available to direct lenders– Any approved Private Mortgage Insurance may be used up

to 90% LTV – Must meet qualifying guidelines



California 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




• 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

– Note: When CalHFA subordinate loans are combined with FHA, VA or USDA first loans, the financed upfront MIP or guarantee fee is included with the base loan amount in calculating the first loan amount LTV




• Fixed interest rate for the entire loan term– Rates set and published by CalHFA– Rates do not “float” like typical loan programs– See “tools & resources” on site for link to rate sheet

• 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 3% of the sales price required from the

borrower(s) own funds




• 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 ECTP- Extra Credit Teacher Program– May not be used with CalSTRS 80/17 per CalSTRS

guidelines



Challenges and opportunities with CalHFA

• Challenges with CalHFA Loan Programs– Private mortgage insurance qualifying guidelines are often

much more restrictive than first mortgage lender guidelines and must be given precedence

– Maximum LTV for Cal30 is 95%– Minimum 3% down payment required from borrower’s own

funds – Cannot come from gift funds, grant or subordinate financing (CHDAP)

• Opportunities with CalHFA Loan Programs– CHDAP may be used with non-CalHFA first mortgages if

first lender is approved with CalHFA– CHDAP may be used in tandem with CalPERS FHA and

CalPERS personal loan (borrower’s own funds)

• Other CalHFA loans may soon be released?


When, How & What to do Guide

Wrap up and Take Aways

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

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

• We are more than happy to recommend a qualified Real Estate Agent that we have interviewed and worked with – Shares our values and education


When, How & What to do Guide

Wrap up and Take Aways

• You will receive a “Thank you” email with links to the information we’ve talked about here today including

– Copy of Workbook & Notes PDF– Links to the topics we discuss in class

• CalHFA loan programs• CalHFA interest rates• CalHFA loan limits• CalHFA income limits• CalHFA sales price limits• CalHFA recapture tax guidelines• Federally targeted areas search


Thank You for AttendingIf you enjoyed this class – Tell a friend

Please tell us how we’re doingFollow up email includes a link to “Praise” page

Your feedback is greatly appreciated

For more information

1-866-667-6724Homeownership Educator

Scott SchangBranch Manager

Broadview Mortgage Corporation

a complete guide to calhfa first time homebuyer programs - cal30 & chdap

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