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ATTENTION CALIFORNIA FIRST TIME BUYERS: CalHFA is Bringing CHDAP Back!

By Donne Knudsen

Mortgage and Lending with Los Angeles & Ventura Counties in CA

May 05, 2009 10:01 AM

The California Housing Finance Agency (CalHFA) issued a press release last night stating that due to the successful sale of mortgage revenue bonds in California, money for CalHFA's down payment assistance program, CHDAP, should be released towards the end May.

CHDAP is a deferred payment, simple interest rate, junior loan of 3% of the sales price or appraised value, whichever is less. CHDAP may be combined with a CalHFA conventional loan program or a government first mortgage loan program like FHA or VA. CHDAP can be used for down payment assistance and/or closing costs.

I do not know any details yet (rate, loan amount, guidelines, etc.) but will forward them as soon as I know anything. Hopefully, it will still be a 3% down payment assistance (DPA) loan program where the payments are deferred for the life of the loan.

If this is the case, eligible borrowers will be able to pair this loan program with an FHA loan program for a combined loan to value (CLTV) of 95.5%. Eligible borrowers will then only need to come up with .5% for their share of the down payment. Be on the lookout for my announcement.

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Michael Wayne Jackson

Luxe Places International Realty - Novato, CA

Broker - Seniors Real Estate Specialist Novato

Well this is great news for first time homebuyers. Thank you for the upate Donne.

May 05, 2009 10:45 AM

Jake Planton

www.JakePlanton.com - Portland, OR

I am pretty sure that all DPA programs were made illegal by Congress? The fact that 30% of them are now going into foreclosure, and that 1/8 FHA loans is delinquent should be some red flags for some people. I am totally in the mind that people should have at LEAST 5% skin into the game. It takes discipline, but all home owners should have some discipline when buying a home anyways...ok, off my soap box :)

May 05, 2009 11:00 AM

Sheldon Neal

Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ

That British Agent Bergen County NJ

Donne !

For the right people, this could be a nice option !

Well spotted Donne :o)

May 05, 2009 11:21 AM

Donne Knudsen

Los Angeles & Ventura Counties in CA - Simi Valley, CA

CalState Realty Services

Mike- Happy to oblige. Thx for stopping by; I appreciate it.

Jake- The CalHFA DPA program is not a seller funded DPA program. The CalHFA DPA is funded by the sale of state mortgage revenue bond sales. Furthermore, they are only offered to low income first time buyers. I don't know what the market there in Oregon is like for first time buyers, but here in Los Angeles and Ventura Counties it is extremely difficult because both of these counties are considered high cost counties.

For many first time buyers here in CA, DPA is the only way for them to realize the American dream of homeownership. Lastly, in regards to foreclosures and CalHFA borrowers, they have a verylow percentage of foreclosures. The reason for this is because besides being fully documented, fully amortized, below market, fixed rate mortgage, there are also verystringent guidelines regarding dti ratios, reserves and fico scores.

Ok, now I'll get off my soapbox.

Sheldon - Exactly! Not every first time buyer is going to qualify for this program because of it's guidelines and requirements but for those that do, it's a great program.

May 05, 2009 11:52 AM

Shirley Parks

Sands Realty 210-414-0966 - San Antonio, TX

Broker, 210-414-0966, San Antonio TX Real Estate

Hi Donne, This is really great news for California home buyers. Will be looking for your next announcement. :o)

May 05, 2009 02:14 PM

Shirley - Yes, it is good news. Back in December, when the program was suspended because of our state budget issues, I had quite a few clients who were just left hanging. Every one of them is now excited about starting up their home searches again.

Thx for stopping by Shirley; I appreciate it.

May 05, 2009 02:27 PM

Greg Nino

RE/MAX Compass - Houston, TX

Houston, Texas

And here I was thinking this was a thing of the past..

May 05, 2009 05:57 PM

G - For awhile, they were here in CA. These programs have been suspended for months because of budgeting issues. But now that those budget issues have been settled, they are slowly coming back. Thx for stopping by; I appreciated it.

May 06, 2009 02:05 AM

ATTENTION CALIFORNIA FIRST TIME BUYERS: CalHFA is Bringing CHDAP Back!

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