Just got this announcement from CalHFA. This is a huge blow to First Time Home Buyers in California. These programs help a lot of people bridge the down payment gap. I hope we get these back soon!
Effective immediately and until the financial markets stabilize, the following CalHFA first mortgage products are temporarily unavailable:
- 35 Year Fixed Rate Mortgage - interest only PLUSSM
- 40 Year Fixed Rate Mortgage
- HomeChoice Program
- New BLOCK Forward Commitments will not be issued, including forward commitments for the Self-Help Builder Assistance Program (SHBAP) Additionally the following subordinate loan programs are also temporarily unavailable:
- High Cost Area Home Purchase Assistance Program (HiCAP)
- CalHFA Housing Assistance Program (CHAP)
Effective September 23, 2008, the interest rate on all 30-Year Fixed Mortgages will be 6.750%. This situation is being monitored daily and these rates and loan products are under continual review. When conditions warrant, programs will be reinstated, announced by Program Bulletin and posted on CalHFA’s website.
View the complete CalHFA Bulletin #2008-31
Danke Schoen,
Nate Ellis
888-808-6283
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Nate - I got word of this change yesterday as well and have spent a long day scrambling to get my current CalHFA pre-approved buyers, who are out there looking and putting in offers, into other programs. I currently only had one CalHFA file in underwriting (THANK GOD) and that will proceed as expected.
This is not good news for some of my buyers. I am, of course, trying to save as many as possible by going FHA but one or two I am probably going to lose because they are not going to be able to scrap together the 3.5% down payment.