CALHFA Down Payment Assistance Helps First Time Home Buyers in California
The California Housing Finance Agency or CALHFA provides first-time home buyers with different grants for buying a home in California. Only CALHFA lenders that are participating members of this program can offer this type of down payment assistance in California to qualifying home buyers. The CHDAP or California Homebuyers Down Payment Assistance Program provides financial assistance to those individuals who can qualify for the program.
It's no secret that many renters are unable to meet the lending requirements of homeownership. Many potential first time buyers are unable to qualify for home financing because their credit history does not meet the standards for buying a house in California. We can connect you with CALHFA lenders that offer mortgages for new home buyers. The second reason renters choose not to participate in the house buying process is the mere fact that they are unable to save enough money for the down-payment requirements. This is why people speak so highly of CALHFA for a down-payment, assistance on first time home buying in California.
About The CHDAP
The CHDAP is classified as a "junior" loan program with a deferred payment schedule. It provides individuals with funds in the amount of 3% of the appraised value or purchase price of the home (whichever is less). The funds can be applied to either the closing costs or the down-payment on this CALHFA loan, or if needed, can be applied to both. The funds can also be used in conjunction with other first-time mortgage loans whether they are CalHFA or non-CalHFA in nature.
Eligibility Requirements For The First-Time Homebuyer
According to the CALHFA guidelines, there are certain eligibility requirements that must be met by the borrower as well as the property in question. These requirements can be found on pages 1 and 2 of the CALHFA guidelines .pdf file entitled "California Homebuyer's Downpayment Assistance Program (CHDAP)." Basically, the borrower must be a first-time home buyer and must use the property as their principal residence.
Additionally, their income must fall below the allowable limits of conventional, FHA, USDA, or VA first-time mortgage loans. As far as the property requirements are concerned, the structure must be a one-unit, single family residence and the price cannot exceed the CALHFA-established limits. Be aware that participating lenders will go with the more restrictive guidelines if there are any conflicting issues.
There are some other CALHFA Down Payment Assistance in California program property guidelines that need to be considered. For instance, if the property is a condominium, the buyer must meet any applicable first mortgage guidelines in order to qualify for assistance. Furthermore, manufactured housing does not qualify for the CALHFA program nor are co-ops, land trusts, and leaseholds permitted. Finally, the property size cannot exceed 5 acres.