Being a first time home buyer in California can be a daunting task. However, there are many solutions and ideas which could help you make things easier without stressing yourself too much. The California Housing Finance Agency (CalHFA) will help you on this matter. The agency offers lots of programs for the first time home buyers to make it more affordable for them to purchase a home.
To qualify for the said loan program, you must be a veteran, and if you do not have a home for more than 3 years. You can also avail the benefit of the program if you target that place to live for. The CalHFA grant conventional and government loan programs for the first time home buyers. Home buyers won’t regret to avail the program since it is guaranteed and insured by the Federal Housing Association (FHA). The loan has a fixed rate of around 30 years and it must be used in order to finance at least 96.5% of the appraised value of the property.
Homebuyers can get the benefits of lower down payment when they avail the program. The loan can also be combined with the approval of the non-CalHFAdown payment and the closing cost program. The presentation of the loan program can limit the cost of the property. You can also combine the Cal30 Conventional Loan Program with the approved CalHFA as well as the closing cost assistance program to have a lesser down payment cost of the new home. However, the Cal30 Conventional Loan Program is not supported by the federal government but you can use this as well.
General Borrower Requirements
You must be a first time home buyer without a home for the last 3 years, veteran, and eager to have a home in the targeted area.
Must be a citizen of the US and permanently live in the US.
Have the capacity to meet all the requirements like loan lender, income, credit, insurer, CalHFA, and master service.
Had accomplished the education counseling of the home buyer and had obtained a certificate of completion from an eligible home buyer counseling.
Must live and stay in the newly bought home throughout the duration of the loan or perhaps until such time that the house is refinanced or being sold.
General Property Requirements
1. The property price must be lesser than the allowable sales limit on price for the county.
2. The land must be in five acres or perhaps lesser than that.
3. The house is only a single (detached) residence and an attached unit in the planned unit development (PUD).
4. The home is not allowed for leasehold and cannot be sold at auction.
5. Coops and land trusts are prohibited
The income of the beneficiary shall not be exceeded upon the allowable income limits of the CalHFA FHA for the designated county in which you want to buy a house. You are only allowed up to 4 co-borrowers. The co-signers are allowed but they must not occupy the home.
With California Housing Finance Agency (CalHFA), buying a home for the first time home buyers is easy.