California’s Largest Down Payment Assistance Program Ever!
Welcome to the Cheat Sheet for the new CalHFA Dream for All Loan (aka the 20% down assistance program).
This is for Consumers and Realtors alike, and the spirit of this is to get CORRECT information out to the masses who may be able to benefit from this program.
There is A LOT of information housed on this webpage - both pdfs and videos, and it is constantly updated, but here are some main points about this product that I think you should be aware of for starters:
@ This program is for first time homebuyers. The definition of a first time homebuyer is 'somebody who has not owned a primary residence in the last three years'
@ Everyone going on the loan MUST occupy the home being purchased (no non occupying cosigners).
@ The minimum credit score for this program is 680
@ CalHFA will lend you up to 20% of the sales price. They do not GIVE it to you. It is a loan, and it will need to be repaid when you SELL the home. The payments are therefore deferred AND it is a zero interest loan. Please see the video for more details
@ CalHFA is able to provide this program because they require an Equity Share Agreement - that means if they lend you 20% of the sales price, they are in for 20% of any equity gain when you SELL the property - please see video regarding Equity Share Agreement on this page for detailed info, as there are variables here
@ This is a Conventional Loan and requires DU approval - there are no exceptions here.
@ Manufactured homes on permanent foundations that meet Fannie Mae guidelines are acceptable
@ Max Debt to Income Ratio is 45% with a 680 and up to 50% for 700+ so long as DU allows
@ The interest rates for this program are set by CalHFA and change DAILY
@ We are one of the only lenders who can lock in this loan as soon as you go under contract (many lenders are not allowed to lock until much later in the process which is risky).
@ We are one of the only lenders who can permanently buy down the rate on CalHFA's rate sheet - YES it IS possible
In my opinion this is a great program for somebody who is a first time buyer and their ideal price range is just out of reach for qualifying reasons, for a first time buyer who just wants a lower payment and doesn't want to use their own funds for down payment, and for a first time buyer who doesn't have a whole lot of money saved for down payment who needs to buy a home to get in the game. There has never been a LARGER down payment assistance program available in the State of California with such common sense, real world guidelines. Thank You CalFHA!
Please share this with a friend or colleague who may need it - this link can also be posted to social media!
Cheers Friends!
Joe Wiggins
909-641-0527
This is for Consumers and Realtors alike, and the spirit of this is to get CORRECT information out to the masses who may be able to benefit from this program.
There is A LOT of information housed on this webpage - both pdfs and videos, and it is constantly updated, but here are some main points about this product that I think you should be aware of for starters:
@ This program is for first time homebuyers. The definition of a first time homebuyer is 'somebody who has not owned a primary residence in the last three years'
@ Everyone going on the loan MUST occupy the home being purchased (no non occupying cosigners).
@ The minimum credit score for this program is 680
@ CalHFA will lend you up to 20% of the sales price. They do not GIVE it to you. It is a loan, and it will need to be repaid when you SELL the home. The payments are therefore deferred AND it is a zero interest loan. Please see the video for more details
@ CalHFA is able to provide this program because they require an Equity Share Agreement - that means if they lend you 20% of the sales price, they are in for 20% of any equity gain when you SELL the property - please see video regarding Equity Share Agreement on this page for detailed info, as there are variables here
@ This is a Conventional Loan and requires DU approval - there are no exceptions here.
@ Manufactured homes on permanent foundations that meet Fannie Mae guidelines are acceptable
@ Max Debt to Income Ratio is 45% with a 680 and up to 50% for 700+ so long as DU allows
@ The interest rates for this program are set by CalHFA and change DAILY
@ We are one of the only lenders who can lock in this loan as soon as you go under contract (many lenders are not allowed to lock until much later in the process which is risky).
@ We are one of the only lenders who can permanently buy down the rate on CalHFA's rate sheet - YES it IS possible
In my opinion this is a great program for somebody who is a first time buyer and their ideal price range is just out of reach for qualifying reasons, for a first time buyer who just wants a lower payment and doesn't want to use their own funds for down payment, and for a first time buyer who doesn't have a whole lot of money saved for down payment who needs to buy a home to get in the game. There has never been a LARGER down payment assistance program available in the State of California with such common sense, real world guidelines. Thank You CalFHA!
Please share this with a friend or colleague who may need it - this link can also be posted to social media!
Cheers Friends!
Joe Wiggins
909-641-0527