The California Housing Finance Agency (CalHFA) has to announce the return of the California Homebuyer's Downpayment Assistance Program (CHDAP).
CHDAP provides down payment assistance in the form of a deferred payment junior loan of an amount up to the lesser of three percent (3%) of the purchase price or appraised value. Interest is calculated at 3.25% per annum simple interest.
Borrowers must be first-time homebuyers as well as meet the program income guidelines and requirements and the property must be within CalHFA's sales price limits. CHDAP may be combined with the following first mortgage programs:
• CalHFA Cal30 Conventional Loan Program (more about this later)
• CalHFA Community Stabilization Home Loan Program (CSHLP)
• CalHFA SMART Loan Program
• Any non-CalHFA conventional or government first mortgage loan
CHDAP down payment assistance can not replace borrower required down payment. For example, if you are using CHDAP with FHA, you will still need to come in with 3.5% down payment in accordance with FHA requirements but you can use CHDAP in addition to your required down payment or to cover your closing costs.
CalHFA will also be requiring prospective homebuyer education counseling for all borrowers applying for a CalHFA conventional first mortgage or subordinate mortgage loan program, even if the first mortgage loan is a non-CalHFA program.
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