Down Payment Assistance (CHDAP) for Inland Empire California First Time Home Buyers

By
Mortgage and Lending with First Time Home Buyer & Down Payment Assistance Specialist in So Cal. NMLS 315238

The California Housing Finance Agency (CalHFA) is making it easier for California''s first time home buyer’s to qualify for the CHDAP 3% down payment or closing cost assistance program for the Inland Empire residents, which covers Riverside and San Bernardino County.  CalHFA reduced the buyers minimum financial contribution to just 1%! On a home purchase of $200,000, the home buyer only needs to contribute $2,000 of their own funds!California Down Payment Assistance

Do you qualify?  Lets find out with this checklist what is required.

What is CHDAP: The CHDAP is a 3.25% deferred payment junior/2nd loan up to 3% of the purchase price.  This 3% can be used to pay your down payment or closing costs.  Yes, California will actually loan you money and not require you make a monthly payment.…it’s almost like a grant in this aspect.  Crazy huh?  CHDAP stands for California Housing Downpayment Assistance Program.

Where is it Available: The CalHFA CHDAP 3% down payment assistance program is available for all counties in California.  This includes cities of Temecula, Murrieta, Menifee, Winchester, French Valley, Corona, Riverside, Lake Elsinore, Canyon Lake, Sun City, Moreno Valley, Chino, Chino hills, Norco, Ontario, Rancho Cucamonga, Fontana, and all cities in California.

Who is Eligible: First time home buyers purchasing a primary residence.  If you haven’t owned a home in the last three years, you qualify.  This means if you had a foreclosure or short sale, you may qualify after your three year waiting period.  This requirement is waived if you are a qualified Veteran or the property is located in a designated target area.

Home Buyer Education: Completing a home buyer education class is required for each borrower.  This can often be done online and is easy.

Property Eligibility: Single family one unit residences only.  Manufactured housing is not allowed.  Condominium’s are allowed but extremely difficult right now to get qualified…..call me for reasons why.

Income Limits: Since the purpose of this program is to help first time buyers in the low to moderate income range, if you make too much you do not qualify.  The limits are determined by county and the number of people living in the home.

  • Riverside & San Bernardino County: Range is from $54,600 to $102,950 depending on number of people in the house.
  • Orange County: Range is from $73,250 to $138,150 depending on number of people in the house.
  • Los Angeles County: Range is from $52,900 to $99,800 depending on number of people in the house.
  • San Diego County: Range is from $63,400 to $119,600 depending on number of people in the house.
  • Don’t see your county?  Call me.

Sales Price Limits: The maximum sales price can vary depending if the home is an existing resale home or new construction and if the home is in a targeted or non-targeted area.  I know, can they make it more confusing?

  • Riverside & San Bernardino County: Max sales price in non-targeted area is $450,000 and $550,000 in a targeted area
  • Orange County: Max sales price in non-targeted area is $656,775 and $802,725 in a targeted area
  • Los Angeles County: Max sales price in non-targeted area is $656,775 and $802,725 in a targeted area
  • San Diego County: Max sales price in non-targeted area is $627,750 and $767,250 in a targeted area

Frequently Asked Questions

Question #1: Do I have to live in the home for a certain number of years or is there a penalty if I sell in 3-5 years like so many other down payment assistance programs have? Answer: nope.

Question #2: Is the 3% CHDAP junior deferred payment loan forgiven at any point?  Answer: Nope.  Payment is due when mortgage is paid off, home sold, or title transferred.

Question #3: Are funds available for the CHDAP down payment assistance program?  Answer: Yes.  About $48 million left.

Question #4: What kind of loan is best used for the first loan?  Answer: Depends.  We need to discuss your situation to determine the best option for you.

Question #5: Does loan approval take longer for this program  Answer: Not really.  Review time by CalHFA is 3-5 days.  If we receive all your pre-approval documentation on time and in order, we can still close in 30.

Question #5: Are non-occupant co-borrowers allowed when using down payment assistance?  Answer: Nope, CalHFA won’t allow it, but I may have other down payment assistance programs that will.

Question #6: Is there a limit to how much the seller can contribute to paying closing costs?  Answer: yes, 3%….it’s a CalHFA rule.  Traditional FHA first loans allow up to 6%.

If you have a question about this or would like to get approved, please call me at (951) 215-6119 or email me at brad(at)homeloanartist.com. I’m here to help.

Comments (8)

Jerry Wilson
Paramount Residential Mortgage Group - Corona, CA
California Loan Officer-Retired

 Brad,

It even gets better: 

This program may be combined with the following down payment and/or closing cost assistance financing options, when available:

  • Affordable Housing Partnership Program (AHPP) - Eligible locality programs can be used for closing cost or down payment assistance as per individual requirements. Select programs from AHPP partners which are designated on the AHPP list as "CalHFA MBS Eligible". (See the AHPP program description for details on adding additional programs)
  • To be eligible for the reduced interest rate, locality program(s) must provide down payment and/or closing cost assistance. Program(s) must also be CalHFA MBS eligible on the CalHFA-approved AHPP list
Nov 15, 2010 07:41 AM
Sidney Kutchuk - Realty Works Temecula Kutchuk - Realty Works Temecula
Realty Works Temecula - Temecula, CA
Realty Works Temecula

Brad:  Good information, I am glad that they are having the participants get a little education about home ownership, perhaps this will prevent foreclosures later on.

Aug 22, 2011 10:47 AM
Brad Yzermans
First Time Home Buyer & Down Payment Assistance Specialist in So Cal. - Temecula, CA
Temecula-Murrieta-Menifee FHA/VA Mortgage Lender

Hi Jane, yeah, the infamous first time buyer education course?  I wish that helped prevent someone from losing there job.  But it does bring greater awareness to the other costs of home ownership that most FTHB's are unaware of. 

Aug 22, 2011 10:59 AM
Anonymous
Gina

Hi Brad,

Do you know if the county of Riverside or specifically the City of Canyon Lake is offering any grant/incentive for first time buyers?

Please kindly advise.  

Thank you.

Gina

Mar 05, 2013 04:30 AM
#4
Brad Yzermans
First Time Home Buyer & Down Payment Assistance Specialist in So Cal. - Temecula, CA
Temecula-Murrieta-Menifee FHA/VA Mortgage Lender

Hi Gina,

Riverside County does have one remaining assistance program left after all the cuts in redevelopment funds......but it's not really something many people qualify for and in this market, would be very diffocult for a seller to accept an offer knowing it would take 60+ days to close a down payment assistance program from Riverside county.

Riverside County is very slow in their turn around times and delays escrow, whch is too bad.

Canyon lake has no special assistance programs.

Here is a link to compare three very popular assistance programs.  http://homeloanartist.com/2012/04/compare-chdap-platinum-access-down-payment-assistance-programs/

 

 

Mar 05, 2013 05:55 AM
Anonymous
Michelle

Do you have to make 54k to qualify?

Aug 18, 2015 12:40 PM
#6
Brad Yzermans
First Time Home Buyer & Down Payment Assistance Specialist in So Cal. - Temecula, CA
Temecula-Murrieta-Menifee FHA/VA Mortgage Lender

Hi Michelle,

CHDAP income limit is dependent on which county you are buyign in and number of people in your household, and the type oof loan you are using.

For example, for a family of 4 in Riverside or San bernardino County using a 3% down Conventional 1st lien, the income cap would be $78,000.

You can search many different down payment assistance programs here ==> Homebuyer Assistance Programs in California

Aug 18, 2015 01:46 PM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Great post! Some one with a good job and good credit can use a multitude of different loan programs that don't require a large downpayment.

Jul 15, 2017 06:19 AM