California Housing Finance Agency (CalHFA)
Requirements to Qualify
To even be considered for one of the California Housing Finance Agency’s loans, buyers must meet certain requirements. First, you must be a first-time homebuyer. That means that you either never owned a home before or you have not owned one in the previous three years. Secondly, your credit score below 660 (for conventional low-income rate) or 680 (for conventional standard rate). Then, your debt-to-income ratio must not exceed 43% to 45%, depending on the type of underwriting used. CalHFA puts an income cap on loan applicants depending on where they wish to purchase a home. Only US citizens, permanent residents, or qualified aliens may apply. Finally, all applicants must attend and complete a home-buying course.
In order for a property to qualify for a CalHFA loan, it needs to meet certain requirements. First, the sale price cannot exceed $765,000. Next, it must be located within the California state limits. Also, it must be the buyer’s primary residence. Finally, they only allow single-family homes on no more than five acres of land. In some cases, a condo, guest home, or manufactured home may qualify.
Types of Loans Offered
- CalHFA FHA Program – 30-year fixed-rate loan. Must meet FHA’s requirements as well.
- CalPLUS FHA Program – Slightly higher rate than a regular FHA loan but can be combined with other assistance programs.
- CalFHA VA Program – 30-year fixed-rate loan for current and former members of the military. Must meet VA’s requirements as well.
- CalFHA Conventional Program – 30-year fixed-rate loan that includes PMI.
- CalPLUS Conventional Program – Also a slightly higher rate than a regular conventional loan but can be combined with other assistance programs.
- Dave & Pat Zumbrun, Your Ventura County real estate specialists