Are you looking to buy your first home? Do you live in California? Do you have very little money to put down on a house? If you answered yes to these three questions, you are in luck. The California Housing Financing Agency (CalHFA) creates and finances progressive housing solutions so more Californians can get you into you’re their first house with no worries.
If this sounds too good to be true, it’s not! The first step is to contact a CalHFA preferred loan officer. They will walk you through the process of buying your first home. Buying your first home can be a daunting process and when you don’t have any money to put down it doesn’t seem possible, but a CalHFA preferred loan officer will help make the process possible and easy. The CalHFA preferred loan officer will get you into a loan called the “CalPLUS Conventional Loan with ZIP Extra”. This loan uses CalHFA’s most popular 30 year fixed loan and builds in a zero interest loan payment program. This Zero Interest Program is called ZIP Extra. With this loan, you have the comfort of knowing you are in a conventional loan, but you also are able to get into this loan with little to no money down.
You are probably wondering how this works and how much of a down payment will the loan cover. The CalPlus Conventional Loan with Zip Extra includes 3% of the loan amount as well as $6,500 towards the down payment and closing costs. The ZIP Extra is basically a small loan that will cover your down payment. It is a loan of 3% of the first mortgage loan amount. It is a no interest loan that only applies to the 3% down. The larger part of your loan or the CalPLUS Conventional Mortgage Loan is where you will pay the interest. Additional CalHFA programs can also be layered on if you qualify. This can potentially bring your down payment to over $10,000. These additional programs are called the California Homebuyer’s Downpayment Assistance Program (CHDAP) and the Extra Credit Teachers Home Purchase Program (ECTP). To understand more about the CalHFA loans and the incremental programs, check out this video.Your CalHFA preferred loan officer can also answer questions and find what programs are right for you.
If you are interested in doing upgrades to your new house, CalHFA can help you out with that as well. There are additional programs and grants available to help you install energy efficient upgrades. If you are worried about your income taxes, CalHFA has a program to help with income tax credits. Your CalHFA preferred loan officer can explain the different loans and how the incremental programs can be layered on. These loans will get you into your first home giving you the additional financial help that your need.
So, what does CalHFA need from you? CalHFA has maintained credible lending by requiring a few things from their borrowers. First, it is important to know that all loans are 30 year fixed loan, therefore the principle payment will stay the same throughout the life of the loan. Next, CalHFA asks its first-time homebuyers to have a credit score no lower than 640-680 and limit debt-to-income ratios. This will ensure that you have the means to afford your payment and will not default on your loan. Lastly, CalHFA asks that first-time homebuyers get a home warranty for their new house. A home warranty is a great idea with any new house. If unexpected repairs are needed, the home warranty will help financially.
To keep responsibly lending money, as they have for the last 35 years, CalHFA uses qualifying factors. If you don’t meet the qualifying factors above, don’t rule out getting a CalHFA loan. First speak directly to a preferred loan officer. CalHFA understands that everyone has specific situations. This being said, they will try their hardest to get you into a loan that works for you. When contacting the CalHFA preferred loan officer, you may want to have pay stubs, bank statements, employment history and previous tax returns available. These will help you answer questions that may be asked.
If you were hesitant on buying your first home and didn’t think you had the finances to make it happen, CalHFA will make it happen. Call a CalHFA preferred loan officer today for more information on the different types of housing loans. A CalHFA preferred loan officer will help you apply and can be contacted at 877-9-CALHFA. Remember to ask about the CalHFA CalPLUS loan. Just think of how happy you will be once you’re are a proud owner of a new home. You will be concentrating on what color to paint the walls and where to put your furniture, instead of worrying about how you will afford the down payment.