If you are first time home buyers in California, you must understand that this defined as somebody who does not owned and occupied a home in 3 years. Meaning, you have never ever have a home or someone that owned a home in the previous years but sold the property. In this case, as a resident of California, you can avail the benefits of California Housing Finance Agency (CalHFA) program intended for the first time home buyer.
However, there are 2 exceptions for the first time home buyer;
• You buy the home in the designated target area of the federal government
• You must be a veteran
What are the requirements?
CalHFA provides loan program for first time home buyer and this depends on the different criteria like credit scores, limit of income, citizenship, and a lot more. To know more about the detailed requirements and the benefits of the program, you can review the description of the program on their website. You can also estimate your payments every month with the use of a mortgage calculator. You can determine here how much loan you can afford and what kind of program you are eligible. The following are the borrower eligibility requirements;
• Must be a citizen of the USA, qualified alien and permanent resident.
• Must meet the loan requirements, income, and credit of the CalHFA mortgage insurer and approved lender.
• Must live in the home that you buy for the duration of the loan or perhaps until the home is refinanced or sold.
• The borrowers of CalHFA must complete the education counseling for the home buyer and get the certificate of completion from the eligible counseling organization.
• Must be an eligible first time home buyer as stated above that you must be someone who do not own a home in the previous 3 years.
What are the property requirements?
The properties that are eligible to CalHFA financing include single family homes up to condominiums in the entire state. However, there is a limit when it comes to sales price but the limit depends upon the county in which the house is bought.
There are also types of restrictions and housing requirements to consider like duplexes, manufactured homes, acreage, and more. Each of the criteria is unique for each loan program. Generally, the requirements for property eligibility for CalHFA programs include;
• The home must be situated in California
• The home shall be considered as the main residence
• The home’s sales price must be lesser compared to the allowable sales price limits
• The maximum size of the property should be 5 acres
• The home should be a single family residence
• The home must be an attached unit or condominium in Planned Unit development (PUD)
What are the targeted areas?
The federal government targeted the areas of California in which the families who reside their earned 80% less than the median income of the statewide. There are at least 58 counties that are targeted in California.
How to search the targeted areas in California?
To help you find and view the maps of the areas that are targeted by the federal government in each county, use the census tracts.
How to find a loan officer to help you?
Purchasing your first home is not really intimidating if there is a loan officer that can help you through the process. Remember, that CalHFA only deals with the expert loan officers that are familiar with the program, requirements, benefits, and options. The loan officers can help and guide you during the processing until it is finished.
Where to find these loan officers?
Loan officers can be found if you view the lists of qualified CalHFA loan officers in your area. Additionally, you can as well find them if you visit their branch office or perhaps you can search in the data base branch office.
However, when contacting the loan officer, prepare the information and the list of documents to help you when the loan officer asks you several questions.
• Bank statements
• Pay stubs
• Tax return
• Employment history
The information listed here can help you if you want to apply to the California Housing Finance Agency (CalHFA) program.