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California First-Time Home Buyer Program

California First Time Home Buyer Program

CalHFA

The California Housing Finance Agency (CalHFA) offers a variety of loan programs designed to make purchasing a new home more affordable for first-time home buyers.

To qualify for these programs, you must not have owned and occupied your own home for the last three years.However, if you are a veteran or are looking to buy a home in a targeted area, you may also qualify for these special first-time loan programs.

CalHFA First Mortgage Loan Programs

CalHFA offers both government and conventional loan programs for first-time buyers:

The CalHFA FHA Loan Program is insured/guaranteed by the Federal Housing Administration (FHA). These fixed-rate 30-year loans can be used to finance up to 96.5% of either the purchase price or appraised value (whichever is lower) of a property.  One of the main benefits of this program is that it allows first-time home buyers to purchase a new home with as little as 3.5% down. In addition, these loans may also be combined with an approved CalHFA or non-CalHFAdown payment and closing cost assistance program to further limit out-of-pocket costs.

The Cal30 Conventional Loan Program is not backed by the federal government. However, it also features a fixed-interest rate over a 30-year term. It has a maximum Loan-to-Value (LTV) of 95% and a maximum total Combined Loan-to-Value (CLTV) of 102%.  Like CalHFA FHA Loans, a Cal30 Conventional Loan may also be combined with an approved CalHFA or non-CalHFA down payment and closing cost assistance program to further reduce the initial out-of-pocket costs of purchasing a new home.

General Borrower Requirements for CalHFA First-Time Home Buyer Loan Programs

  • Must be a first-time home buyer (as defined above). Exceptions include military veterans and those seeking to purchase a home in a targeted area.
  • Must be a U.S. citizen, permanent resident or other qualified alien.
  • Need to meet all credit, income and loan requirements of the lender, insurer, master servicer and CalHFA.
  • Must live in the purchased home for the entire term of the loan, or until the home is sold or refinanced.
  • Must complete home buyer education counseling and obtain a certificate of completion from an eligiblehomebuyer counseling organization.

General Property Requirements for CalHFA First-Time Home Buyer Loan Programs

  • To qualify for either the CalHFA FHA or the Cal30 Conventional Loan Programs, the following general property requirements must also be met:
  • The purchase price of the property must be less than the allowable sales price limits for the county where it is located.
  • Property can be either newly constructed or previously owned.
  • The property must be on five acres or less.
  • The home must be a) a single family residence (detached), b) a detached unit within a planned unit development (PUD), or c) a condominium or attached unit within a PUD
  • Manufactured homes not allowed.
  • Leaseholds/Land Trusts and Co-ops not allowed.
  • Properties sold at auction by the builder, developer or construction lender not allowed.

In addition to the general borrower and property requirements outlined above, the following program-specific requirements also exist for each program.

CalHFA FHA Loans

Program-Specific Borrower Requirements:

  • Your income can not exceed the allowable CalHFA FHA income limits for the county in which you plan to purchase a home.
  • You must possess a minimum FICO score of 620.
  • Up to four co-borrowers are allowed.
  • All co-borrowers must live in the home as a primary residence.
  • All co-borrowers must be first-time home buyers.
  • Co-signers are allowed, but may not occupy the home.

Program-Specific Property Requirements:

  • Loan amount limited to $417,000 per FHA guidelines. If sales price exceeds this amount, the borrower will need to contribute the amount above $417,000.

Cal30 Conventional Loans

Program-Specific Borrower Requirements:

  • Your income can not exceed the allowable Cal30 income limits for the county in which you plan to purchase a home.
  • You must possess a minimum FICO score of 620.
  • No more than four co-borrowers allowed.
  • All co-borrowers must live in the home as a primary residence.
  • All co-borrowers must be first-time home buyers.
  • Co-signers are not allowed.

Please note, the above requirements are meant as general guidelines and are subject to change. To best determine which CalHFA program or mortgage loan is right for you, call to speak to one of our experienced loan professionals today.

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*Union Home Mortgage Company is a Preferred Lender for CalHFA’s First Mortgage Loan Programs