How would you like to buy a $670,000 home here in California as a First Time Homebuyer? Low Credit Score? Nothing Down? Not much in the bank account? At a Great Rate? Is that too much to ask for?
Impossible you say?
I don't think so. This program is just for you.
How does 100% financing sound? Can we cover all your closing costs too? How about if this was also backed by a secure government agency?
That sounds contradictory to everything you are hearing in the news doesn't it? Nationwide, we are seeing alarming increases of mortgage defaults. Lenders are forced to shut their doors overnight or at a minimum create only new loans with much stricter guidelines and higher rates. The secondary mortgage markets don't want to buy pools of mortgages from lenders because of these defaults. Who could blame them?
Those astute enough will be quick to point out that FHA and VA guarantee the performance of their loans. Both of those entities are government programs. FHA will take you to 97%, VA will get you to 100% but certain restrictions apply.
So why is this new program, The Best First Time Buyer Program Ever?
First of all, it's not new. It's been around since 1975. It's called CalHFA, it stands for California Housing Finance Agency.
CalHFA is a California agency that provides financial backing not by reselling their loans on the secondary mortgage market but by selling tax exempt Mortgage Revenue Bonds.
For in depth reading, try Freddie Mac's page on MRB's. To learn more about Mortgage Backed securities, try this page from the S.E.C. There is a lot of highly detailed information out there.
Better yet, here's the beef. CalHFA will allow you to buy a home with a lower credit score, no money down, and help pay your closing costs. They can do it with an FHA loan, a V.A. loan, a conventional conforming loan (Fannie Mae or Freddie Mac), and they can do it with a Jumbo loan (over $417,000).
- First Time Home Buyer is anyone who has not owned in the last 3 years.
- Just a 620 middle Credit Score - a 720 score is required by many of those other "traditional" for 100% financing.
- Great Rates - Here's today's rates
- Great Programs, 30 Year Fixed, 40 Year Fixed, Interest Only.
- Down Payment Assistance, $7,500 and 3% of the sales price (all deferred for the term of the loan)
If the property is in a designated area, or you work for a school, the benefits could be much much better.
There's one catch. Per the CalHFA website, "CalHFA does not lend money directly to consumers. CalHFA works through and uses approved private lenders to qualify consumers and to make all mortgage loans."
You need to work with a mortgage professional that is certified to complete these special programs. Unfortunately very few mortgage originators are certified for CalHFA loans.
I am - Just give me a call. (925) 288-9977 Ext. 104
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