Affordable Housing Programs for all of Los Angeles County
Community Development Commission (CDC)
County of Los Angeles
- (HOP) Home Ownership Programs
- (ADDI) American Dream Down payment Initiative
- (SCHFA) Southern California Home Finance Authority
- (MCC) Mortgage Credit Certificate Program
Home Ownership Program (HOP) HOP loans are only available in the unincorporated areas of Los Angeles County and cities participating in the Community Development Block Grant (CDBG) Urban County Program. If purchased in the unincorporated areas within our designated census tract area the borrower will receive $90,000 or 25% of the purchase price whichever is least. If purchased in the participating cities the borrower will receive $80,000 or 20% of the purchase price whichever is least. You can order the HOP brochure by calling our recorded information line at (323) 890-7281, leave your name and address and the brochure will be mailed to you.
HOP is financed with HOME funds provided through the U.S. Department of Housing and Urban Development (HUD) and is subject to the applicable federal regulations. HOP has been designed to meet the needs of low-income families with the necessary down payment assistance. This program will provide a 2nd Trust Deed loan at 0% interest with all payments deferred until sale, transfer, refinancing, or full repayment of the first mortgage.
American Dream Down payment Initiative
Summary
The American Dream Down payment Initiative (ADDI) was signed into law on December 16, 2003. The American Dream Down payment Assistance Act authorizes up to $200 million annually for fiscal years 2004 - 2007. ADDI will provide funds to all fifty states and to local participating jurisdictions that have a population of at least 150,000 or will receive an allocation of at least $50,000 under the ADDI formula. ADDI will be administered as a part of the HOME Investment Partnerships Program, a formula grant program.
Purpose
ADDI aims to increase the homeownership rate, especially among lower income and minority households, and to revitalize and stabilize communities. ADDI will help first-time home buyers with the biggest hurdle to homeownership: down payment and closing costs. The program was created to assist low-income first-time home buyers in purchasing single-family homes by providing funds for down payment, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase.
Type of Assistance
ADDI will provide down payment, closing costs, and rehabilitation assistance to eligible individuals. The amount of ADDI assistance provided may not exceed $10,000 or six percent of the purchase price of the home, whichever is greater. The rehabilitation must be completed within one year of the home purchase. Rehabilitation may include, but is not limited to, the reduction of lead paint hazards and the remediation of other home health hazards.
Eligible Customers
To be eligible for ADDI assistance, individuals must be first-time home buyers interested in purchasing single family housing. A first-time home buyer is defined as an individual and his or her spouse who have not owned a home during the three-year period prior to the purchase of a home with ADDI assistance. ADDI funds may be used to purchase one- to four- family housing, condominium unit, cooperative unit, or manufactured housing. Additionally, individuals who qualify for ADDI assistance must have incomes not exceeding 80% of area median income.
Eligible Activities
ADDI funds may be used for down payment, closing costs and, if necessary, rehabilitation in conjunction with home purchase. ADDI funds used for rehabilitation may not exceed twenty percent of the participating jurisdiction's total ADDI allocation. The rehabilitation assisted with ADDI funds must be completed within one year of the home purchase.
Funding Status
In FY 2005, Congress appropriated $49,600,000 for ADDI. Previously, Congress appropriated $74,513,000 in FY2003 and $86,984 in 2004. HUD has issued formula allocations for FY 2005 to assist participating jurisdictions in preparing their consolidated plans.
Obtaining Assistance
First, check the formula allocation page to determine whether your local HOME administering agency received ADDI funding. If they did not receive ADDI funding, ADDI funds may be available through your state. Every state received ADDI funds. The contacts for state are available in the HOME administering agency list.
Mortgage Credit Certificate
WHAT IS AN MCC?
The MCC Program offers the first time home buyer a federal income tax credit. This credit reduces the amount of federal taxes the holder of the certificate would pay. It can also help the first time home buyer qualify for a loan by allowing a lender to reduce the housing expense ratio by the amount of tax savings.
The qualified home buyer who is awarded an MCC may take an annual credit against their federal income taxes paid on the home buyer's mortgage. The credit is subtracted dollar-for-dollar from your federal income taxes. The qualified buyer is awarded a tax credit of up to 15% and the remaining 85% are taken as a deduction from the income in the usual manner.
HOW DO I APPLY?
The County does not make loans. You, the home buyer, go through the normal process of choosing a Realtor, finding a house, condo, townhouse mobile home or two unit properties (duplex) and arranging financing with a participating lender. If you and the home you are buying are eligible, the lender fills out the MCC application forms for you, and sends them to the County for review. If you and your home qualify, the County can then issue an MCC.
After you receive your MCC, you can take the income tax credit every year, as long as you keep the same home and the original first mortgage and continue to live in the house as your principal residence.
There is a $250.00 NON-REFUNDABLE application fee for an MCC, of which $150.00 is passed on to the CDC.
INCOME TAX DETAILS
The MCC will reduce the amount of your income taxes due to the federal government; however, the tax benefit cannot exceed the amount of federal taxes owed for the year after other credit and deductions have been taken. Instead, the tax credits can be carried forward three years until used.
You may wish to adjust your federal income tax withholding in order to receive the MCC benefit on a monthly basis. Talk to your payroll department at your place of work. By reducing your monthly withholding, you will have more disposable (after-tax) income with which to make mortgage payments.
What is the difference between a "Tax Credit" and a "Tax Deduction"?
A Tax deduction is subtracted from your adjusted gross income before you calculate your federal income taxes. A tax credit, on the other hand, entitles you, the taxpayer, to subtract the amount of credit from your total federal income tax bill. We are not tax advisors. If you have any questions about how your taxes will be affected, you should contact your tax accountant or the IRS at 800-TAX-1040
ABOUT (SCHFA)
Southern California Home Financing Authority (SCHFA) is a joint powers authority between Los Angeles and Orange Counties formed in June 1988 to issue tax exempt mortgage revenue bonds for low and moderate income First Time Home buyers. To date, SCHFA has helped thousands of individuals and families fulfill their dreams of owning their own home through its First-Time Home buyer Program. This program makes purchasing a home more affordable for qualifying home buyers by offering below market interest 30-year fixed rate, 40-year fixed rate, and a 40-year fixed rate loan with 10 years interest only payments.
The program is administered by the County of Los Angeles Community Development Commission (CDC) and the Public Finance Division of the County of Orange. SCHFA does not lend money directly to home buyers. Home buyers must work directly with a participating lender.
First Time Home buyer Requirement
A first-time home buyer is defined as a person(s) who has not had an ownership interest in their primary residence during the previous three years unless you are buying a home in an IRS Designated Targeted Area Census Tract.
Eligible Areas in Los Angeles County
All unincorporated areas and incorporated cities in the County of Los Angeles except the City of Los Angeles areas.
Eligible Areas in Orange County
All unincorporated areas and incorporated cities in the County of Orange.
Property Types
Single Family Residences, Condominiums, Town homes and Planned Unit Developments.
INTEREST RATES (Subject to Change Without Notice)
Terms |
Interest Rate |
Origination Fee |
Discount Points |
30 Year Fixed Rate |
6.50% |
1% |
0 |
40 Year Fixed Rate |
6.625% |
1% |
0 |
40 Year Fixed Rate with 10 YearsInterest Only |
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LOAN TYPES
FHA,VA, Conventional
DOWNPAYMENT AND CLOSING COST ASSISTANCE
The home buyer will receive a gift of 4.0% of the loan amount to be applied toward the down payment, non-recurring closing costs and/or prepaid items.
INCOME AND PURCHASE PRICE LIMITS
Maximum Income Limits Los Angeles County
Type of |
One or Two |
Three or More |
New and Existing |
Up to $88,800 |
Up to $103,132 |
Maximum Income Limits Orange County
Type of |
One or Two |
Three or More |
New and Existing |
Up to $103,920 |
Up to $121,240 |
Maximum Purchase Price Limits Los Angeles and Orange County
Non-Targeted Areas |
Non-Targeted |
Targeted Areas |
Targeted Area
|
$571,278 |
$591,272 |
$698,229 |
$722,665 |
California Housing Finance Agency (CalHFA) FIRST MORTGAGE LOAN PROGRAMS CalHFA Conventional Loans Interest OnlyPLUS
County of Los Angeles
These are below market rate loans offered to low and moderate income homebuyers in California. Silent second programs are also available for downpayment assitance and for closing costs. There are special programs for teachers through the Extra Credit Teacher Program (ECTP). Thes are first time buyer programs with strict income and other guidelines. See below for details, and visit our affiliated site at http://loanZdirect.com and http://HomeNLoan.com to learn more or to apply.
The program features a conventional loan with a low fixed interest rate, 35-year term, and interest-only payments for the first five years. The interest rate does not change for the entire 35-year term. The interest only PLUS loan has a maximum Loan-to-Value (LTV) limit of 100% and can be used together with CalHFA approved down payment and/or closing cost assistance options for a total Combined Loan-to-Value (CLTV) of 107%.
INTEREST |
Fixed interest rate for the entire loan term. See the current published rates. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TERM |
Interest-only payments for the first five years, followed by a 30-year fully amortized loan for a total of 35-year term | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LTV |
Maximum LTV: 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CLTV |
Maximum CLTV: 107% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ORIGINATION FEES |
1.5% origination fee | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY ELIGIBILITY |
Property must meet all of the following requirements:
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MORTGAGE INSURANCE
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Mortgage Insurance is provided by CalHFA Mortgage Insurance Services and is required on the first loan in excess of 80.00% as follows:
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BORROWER ELIGIBILITY |
Borrowers must meet the following requirements:
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TRANSACTION TYPE |
Purchase transactions only | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PARTICIPATING LENDERS |
Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or online through http://loanZdirect.com | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAXIMUM LOAN AMOUNT |
Financing is available up to 100% of the lesser of the appraised value or the sales price limits established for the county in which the property is located
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SUBORDINATE FINANCING |
All CalHFA subordinate loan programs except CalHFA Housing Assistance Program (CHAP) are eligible to be used with this loan program. These include:
*Only eligible for one program per transaction. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UNDERWRITING GUIDELINES |
See CalHFA’s Underwriting Guidelines. interest only FIRST MORTGAGE LOAN PROGRAMS CalHFA Conventional Loans Interest OnlyPLUS
INTEREST Fixed interest rate for the entire loan term. See the current published rates. TERM Interest-only payments for the first five years, followed by a 30-year fully amortized loan for a total of 35-year term LTV Maximum LTV: 100% CLTV Maximum CLTV: 107% ORIGINATION FEES 1.5% origination fee PROPERTY ELIGIBILITY Property must meet all of the following requirements: MORTGAGE INSURANCE Mortgage Insurance is provided by CalHFA Mortgage Insurance Services and is required on the first loan in excess of 80.00% as follows: BORROWER ELIGIBILITY Borrowers must meet the following requirements: TRANSACTION TYPE Purchase transactions only PARTICIPATING LENDERS Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com MAXIMUM LOAN AMOUNT Financing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTEREST ONLY PERIOD |
During the interest only period (first five years), the required monthly payment will consist of interest, taxes and hazard insurance. Flood and mortgage insurance and homeowner's association dues may also be included if required. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAYMENTS |
No prepayment penalty. If principal prepayments are made during the interest-only period, the required monthly payment will adjust downward to reflect the principal reduction. Additional principal payments made after the interest-only period will be applied to decrease the outstanding principal balance. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PAYMENT INCREASE NOTICES | Servicers must give Borrowers a reminder notice each year that their payments will increase beginning in year six, as well as a final payment increase reminder 45 days prior to the actual adjustment. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DOCUMENTATION
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| HOW TO APPLY | Questions regarding this program should be directed to Adriana Toyama at 323 259-11773 or online through http://www.loanZdirect.com | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES AND DEEDS |
Non-conforming loans may use either the CalHFA conventional documents or Fannie Mae/Freddie Mac uniform documents until September 1, 2007. At that time use of the Fannie Mae/Freddie Mac documents are mandatory. Conforming loans must immediate use the Fannie Mae/Freddie Mac documents, including but not limited to:
Lenders must use applicable documents (e.g., MERS, PUD Rider, etc.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
IMPORTANT DISCLOSURE INFORMATION:
CalHFA does not lend money directly to consumers. We use approved private lenders to qualify consumers and make all mortgage loans. Rates can vary depending on loan program and income level.
The information provided in this program description is for guidance only. While we have taken care to provide accurate information, we cannot cover every circumstance or program nuance. This program description is subject to change from time to time without prior notice. CalHFA does not discriminate on any prohibited basis in employment or in the admission and access to its programs or activities.
This conventional first mortgage loan program features a below market fixed interest rate fully amortized loan over a 40-year term. It has a maximum Loan-to-Value (LTV) limit of 100% and may also be used with CalHFA-approved down payment and/or closing cost assistance options except CalHFA Housing Assistance Program (CHAP) for a total Combined-Loan-to-Value (CLTV) of 107%.
INTEREST |
Fixed interest rate for the entire loan term | |||||||||||
TERM |
40 years | |||||||||||
LTV |
Maximum LTV: 100% |
Manufactured Housing LTV: 90% | ||||||||||
CLTV |
Maximum CLTV: 107% |
Manufactured Housing CLTV:90% | ||||||||||
ORIGINATION FEES |
1.5% origination fee | |||||||||||
PROPERTY ELIGIBILITY |
Property must meet all of the following requirements:
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MORTGAGE INSURANCE
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Mortgage Insurance is provided by CalHFA Mortgage Insurance Services and is required on the first loan in excess of 80.00% as follows:
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BORROWER ELIGIBILITY |
Borrowers must meet the following requirements:
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TRANSACTION TYPE |
Purchase transactions only | |||||||||||
PARTICIPATING LENDERS |
Refer to our loan website to apply http://www.loanZdirect.com to find 40-Year Fixed Mortgage. | |||||||||||
MAXIMUM LOAN AMOUNT |
CalHFA does not establish maximum loan amounts. Financing is available up to 100% of the sales price limits established for the county in which the property is located. | |||||||||||
SUBORDINATE FINANCING |
All CalHFA subordinate loan programs except CalHFA Housing Assistance Program (CHAP) are eligible to be used with this loan program. These include:
* Only eligible for one program per transaction | |||||||||||
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DOCUMENTATION
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HOW TO APPLY |
Refer to our website at http://www.loanZdirect.com to find 40-Year Fixed Mortgage Loans. Lenders make reservations through CalHFA’s Lender Access System (LAS). Follow procedures outlined in Lender Program Manual. | |||||||||||
NOTES AND DEEDS |
Use CalHFA Conventional Deed of Trust and Promissory Note located on the Conventional Loan Forms web page. | |||||||||||
IMPORTANT DISCLOSURE INFORMATION:
CalHFA does not lend money directly to consumers. We use approved private lenders to qualify consumers and make all mortgage loans. Rates can vary depending on loan program and income level.
The information provided in this program description is for guidance only. While we have taken care to provide accurate information, we cannot cover every circumstance or program nuance. This program description is subject to change from time to time without prior notice. CalHFA does not discriminate on any prohibited basis in employment or in the admission and access to its programs or activities.
Government Insured/Guaranteed Loans
PROGRAM DESCRIPTION |
CalHFA purchases first mortgage loans that are insured/guaranteed by FHA, VA or USDA to enhance affordability and homeownership opportunities in the form of 30-year below market fixed rate loans. Financing may be used for purchasing either existing or new construction homes. |
TARGET MARKETS |
This program is intended for low to moderate income first-time homebuyers throughout California. |
PARTICIPATING LENDERS |
Questions about this program should be directed to Adriana Toyama at 323 259-1773 or apply online at http://www.loanZdirect.com |
BORROWER ELIGIBILITY |
Borrowers must meet the following requirements:
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PROPERTY ELIGIBILITY |
Properties must meet all of the following requirements :
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TRANSACTION TYPE |
Purchase transactions only |
INTEREST RATE |
CalHFA offers a unique interest rate for this program. For more detailed information contact: Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com |
MAXIMUM LOAN AMOUNT |
Maximum as allowed by mortgage insurer, subject to borrower credit eligibility. |
SUBORDINATE FINANCING |
This program may be combined with the following subordinate financing options:
*Only eligible for one program per transaction |
DOWN PAYMENT ASSISTANCE LOAN PROGRAMS
Affordable Housing Partnership Program (AHPP)
PROGRAM DESCRIPTION The Affordable Housing Partnership Program (AHPP) is a joint effort between CalHFA and over 300 cities, counties, redevelopment agencies, housing authorities and nonprofit housing organizations. Low income first-time homebuyers, who obtain direct financial assistance from a local government agency or locality with their down payment and/or closing costs, may be able to obtain a CalHFA below market fixed rate first loan. (The low income reduced interest rate is not available on the CalHFA interest only PLUSSM or the 40-Year Fixed Mortgage loan programs.) Not all CalHFA’s loan products are available to partner with AHPP. As of August 1, 2007, CalHFA interest only PLUSSM conforming loan can only partner with those locality programs noted as “CalHFA MBS Program Eligible” on the AHPP approved program list. TARGET MARKETS This program is intended for low income first-time homebuyers. . PARTICIPATING LENDERS CalHFA Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com BORROWER ELIGIBILITY Borrowers must meet the following requirements: PROPERTY ELIGIBILITY Properties must meet the following requirements: TRANSACTION TYPE Purchase transactions only. INTEREST RATE CalHFA offers a preferential interest rate to low-income borrowers on the first mortgage loan. Junior loan interest rate is determined by individual AHPP partners for their respective programs. MAXIMUM LOAN AMOUNT First mortgage loan amount is subject to borrower credit eligibility. Junior loan amount is determined by individual AHPP partners for their respective programs. HOW TO APPLY For instructions on applying for financing, contact Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com QUESTIONS Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com
A joint effort by CalHFA and cities, counties, redevelopment agencies and housing authorities whereby a deferred payment subordinate loan from a locality is utilized by the first-time homebuyer to assist them with down payment and/or closing costs.
IMPORTANT DISCLOSURE INFORMATION:
CalHFA does not lend money directly to consumers. We use approved private lenders to qualify consumers and make all mortgage loans. Rates can vary depending on loan program and income level.
The information provided in this program description is for guidance only. While we have taken care to provide accurate information, we cannot cover every circumstance or program nuance. This program description is subject to change from time to time without prior notice. CalHFA does not discriminate on any prohibited basis in employment or in the admission and access to its programs or activities.
PROGRAM DESCRIPTION The CalHFA Housing Assistance Program (CHAP) is designed to provide up to 3% of the down payment assistance needs of eligible homebuyers purchasing a home anywhere in California. The program, for both new construction and existing home sales, is only available when combined with an FHA-insured CalHFA 30-Year Fixed Mortgage. CHAP is a deferred-payment junior loan for down payment assistance. The junior loan has a low simple interest rate and a term of 30 years; however, payments on the junior loan are deferred for the life of the first loan. In addition, CalHFA will permit homebuyers to use other CalHFA-approved down payment assistance loans or grants to help in the purchase of the home. TARGET MARKETS This program is intended for low and moderate income first-time homebuyers anywhere in California. PARTICIPATING LENDERS Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com BORROWER ELIGIBILITY Borrowers must meet the following requirements: PROPERTY ELIGIBILITY Properties must meet the following requirements: TRANSACTION TYPE Purchase transactions only. INTEREST RATE Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com MAXIMUM LOAN AMOUNT 3% of the sales price or appraised value, whichever is less. REPAYMENT OF JUNIOR LOAN Repayment of the principal and interest on the junior loan shall be due and payable at the earlier of the following events: HOW TO APPLY Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com QUESTIONS Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com
CalHFA Housing Assistance Program (CHAP)
Offers a deferred-payment junior loan of an amount up to the lesser of three percent (3%) of the purchase price or appraised value.
IMPORTANT DISCLOSURE INFORMATION:
CalHFA does not lend money directly to consumers. We use approved private lenders to qualify consumers and make all mortgage loans. Rates can vary depending on loan program and income level.
The information provided in this program description is for guidance only. While we have taken care to provide accurate information, we cannot cover every circumstance or program nuance. This program description is subject to change from time to time without prior notice. CalHFA does not discriminate on any prohibited basis in employment or in the admission and access to its programs or activities.
California Homebuyer's Downpayment Assistance Program (CHDAP)
Offers a deferred-payment junior loan of an amount up to the lesser of three percent (3%) of the purchase price or appraised value.
PROGRAM DESCRIPTION |
The California Homebuyer’s Downpayment Assistance Program (CHDAP) is designed to provide a deferred payment, simple interest rate junior loan of an amount up to three percent (3%) of the sales price or appraised value, whichever is less. The junior loan may be used for down payment or closing costs and may be combined with a CalHFA or non-CalHFA conventional or government first mortgage loan. |
TARGET MARKETS
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This program is intended for low and moderate income first-time homebuyers anywhere in California. |
PARTICIPATING LENDERS |
Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or apply online through http://www.loanZdirect.com |
BORROWER ELIGIBILITY |
Borrowers must meet the following requirements :
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PROPERTY ELIGIBILITY |
Properties must meet the following requirements:
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TRANSACTION TYPE |
Purchase transactions only. |
INTEREST RATE |
Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or apply online through http://www.loanZdirect.com |
MAXIMUM LOAN AMOUNT |
3% of the sales price or appraised value, whichever is less. |
| REPAYMENT OF JUNIOR LOAN | Repayment of the principal and interest on the junior loan shall be due and payable at the earlier of the following events:
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| PROGRAM RESTRICTIONS | CHDAP cannot be combined with CalHFA’s Extra Credit Teacher Home Purchase Program (ECTP). |
| ADDITIONAL PROGRAM OPTIONS | Effective January 1, 2005, State Legislation has increased the amount of down payment assistance offered under the CHDAP, from 3% to 5% of the purchase price or the appraised value (whichever is less) for borrowers purchasing a newly constructed home in specific eligible areas. See the list of government entities that have eligible areas (such as, an infill opportunity zone, transit village development district or transit-oriented development plan area) or you may contact your local city/county planning department. |
| HOW TO APPLY | Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or apply online through http://www.loanZdirect.com |
| QUESTIONS | Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or apply online through http://www.loanZdirect.com |
IMPORTANT DISCLOSURE INFORMATION:
CalHFA does not lend money directly to consumers. We use approved private lenders to qualify consumers and make all mortgage loans. Rates can vary depending on loan program and income level.
The information provided in this program description is for guidance only. While we have taken care to provide accurate information, we cannot cover every circumstance or program nuance. This program description is subject to change from time to time without prior notice. CalHFA does not discriminate on any prohibited basis in employment or in the admission and access to its programs or activities.
Extra Credit Teacher Home Purchase Program (ECTP)
A below market interest rate CalHFA first loan, together with a forgivable interest CalHFA junior loan to assist eligible teachers, administrators, staff members and classified employees to purchase their first home.
PROGRAM DESCRIPTION |
The Extra Credit Teacher Program (ECTP) is designed to make homeownership a possibility for eligible teachers, administrators, classified employees and staff members working in high priority schools in California. The ECTP is intended to help high priority schools attract and retain education professionals by offering an incentive in the form of down payment assistance for the purchase of a home anywhere in California. The Program provides: 1. A deferred payment, junior mortgage loan for down payment assistance of an amount not to exceed the greater of $7,500 or 3% of the sales price, or; of an amount not to exceed the greater of $15,000 or 3% of the sales price in CalHFA-defined high cost areas . 2. A special reduced interest rate on the CalHFA 30-Year Fixed Mortgageor Government Insured/Guaranteed30-year fixed Mortgage. (The special reduced rate is not available on the CalHFA interest only PLUSSM or the 40-Year Fixed Mortgage loan programs.) Interest on the junior loan is deferred and may be reduced to zero if the borrower meets continued eligibility requirements. In addition, CalHFA will permit homebuyers to use other CalHFA-approved down payment assistance loans or grants to help in the acquisition of the home. |
TARGET MARKETS |
This program is intended for eligible teachers, administrators, classified employees and staff members in high priority schools across the state. |
PARTICIPATING LENDERS |
Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or apply online through http://www.loanZdirect.com |
BORROWER ELIGIBILITY |
Borrowers must meet the following requirements:
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ELIGIBLE CREDENTIAL LIST |
For Teachers: (Credential held must be either a Preliminary or Full Credential. Intern Credentials and Emergency Permits are not eligible under the program.)
For Administrators :
For Staff Members:
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ELIGIBLE CLASSIFIED EMPLOYEES |
For Classified Employees: Classified Employee means an employee of a school district, employed in a position not requiring certification qualifications. |
PROPERTY ELIGIBILITY |
Properties must meet the following requirements :
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TRANSACTION TYPE |
Purchase transactions only. |
INTEREST RATE |
CalHFA offers a unique interest rate for this program. A list of current rates is also available by contacting a CalHFA- lender. Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or apply online through http://www.loanZdirect.com |
MAXIMUM LOAN AMOUNT |
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INTEREST FORGIVENESS ON THE JUNIOR LOAN |
Interest on the junior loan may be reduced to zero if the borrower meets continued eligibility by remaining employed in a high priority school on a continuous basis for three years from the date specified on the junior loan documents. The interest rate on the junior loan will be reduced by 1% for each full year borrower remains employed in a high priority school, up to a maximum of three years. At the end of three years, the rate is reduced to zero. In the event of termination of employment during the first three years, the interest rate on the junior loan will accrue at the last reduced rate (if applicable) that the borrower met continued eligibility. |
REPAYMENT OF SECOND LOAN |
Repayment of the principal and interest on the junior loan shall be due and payable at the earlier of the following events:
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PROGRAM RESTRICTION |
ECTP cannot be combined with CalHFA’s California Homebuyer’s Downpayment Assistance Program(CHDAP). |
HOW TO APPLY
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Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or apply online through http://www.loanZdirect.com Lenders make reservations through CalHFA’s Lender Access System (LAS). Follow procedures outlined in Lender Program Manual. |
QUESTIONS |
Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or apply online through http://www.loanZdirect.com |
IMPORTANT DISCLOSURE INFORMATION:
CalHFA does not lend money directly to consumers. We use approved private lenders to qualify consumers and make all mortgage loans. Rates can vary depending on loan program and income level.
The information provided in this program description is for guidance only. While we have taken care to provide accurate information, we cannot cover every circumstance or program nuance. This program description is subject to change from time to time without prior notice. CalHFA does not discriminate on any prohibited basis in employment or in the admission and access to its programs or activities.
PROGRAM DESCRIPTION The High Cost Area Home Purchase Assistance Program (HiCAP) is designed to help make homeownership a possibility for first-time homebuyers in some of California's higher cost counties. HiCAP is available only when combined with a CalHFA first mortgage program. HiCAP is a deferred-payment second loan of $7,500 to be used for down payment assistance. This second loan has a low simple interest rate and a term that will match the term of the CalHFA first mortgage loan; however, payments on the HiCAP loan are deferred for the life of the first loan. In addition, CalHFA will permit homebuyers to use other CalHFA-approved down payment assistance loans or grants to help in the purchase of the home. TARGET MARKETS This program is intended for borrowers purchasing in Alameda, Contra Costa, Los Angeles (except Palmdale/Lancaster Areas) Marin, Monterey, Napa, Orange, San Benito, San Francisco, San Luis Obispo, San Mateo, Santa Barbara, Santa Cruz, Solano, Sonoma, and Ventura counties. PARTICIPATING LENDERS Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com BORROWER ELIGIBILITY Borrowers must meet the following requirements: PROPERTY ELIGIBILITY Properties must meet the following requirements: Meet the requirements of the mortgage insurer/guarantor of the CalHFA first mortgage loan TRANSACTION TYPE Purchase transactions only. INTEREST RATE Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com MAXIMUM LOAN AMOUNT $7,500 REPAYMENT OF SECOND LOAN Repayment of the principal and interest on the second loan shall be due and payable at the earlier of the following events: HOW TO APPLY Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com QUESTIONS Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com
High Cost Area Home Purchase Assistance Program (HiCAP)
Designed to assist first-time homebuyers in the highest housing cost areas of the state
IMPORTANT DISCLOSURE INFORMATION:
CalHFA does not lend money directly to consumers. We use approved private lenders to qualify consumers and make all mortgage loans. Rates can vary depending on loan program and income level.
The information provided in this program description is for guidance only. While we have taken care to provide accurate information, we cannot cover every circumstance or program nuance. This program description is subject to change from time to time without prior notice. CalHFA does not discriminate on any prohibited basis in employment or in the admission and access to its programs or activities.
PROGRAM DESCRIPTION The School Facility Fee Down Payment Assistance Program is designed to provide qualified homebuyers with assistance to purchase their newly constructed home. Eligible applicants receive a conditional grant based on either a partial or full rebate of the school facility fees paid by the builder. The assistance can be used for down payment, closing costs, or any costs associated with the buyer’s first mortgage loan, subject to acceptance by the mortgage lender and the mortgage insurer. Processing fees to the borrower are not allowed under the School Facility Fee Down Payment Assistance Program. TARGET MARKETS This program is intended for California homebuyers purchasing newly constructed single family homes or condominiums. PARTICIPATING LENDERS Can be accessed by any lender or directly by homebuyer. PROGRAM #1- ECONOMICALLY DISTRESSED AREA Eligibility requirements: PROGRAM #2- FIRST-TIME HOMEBUYER MODERATE INCOME LIMITS Eligibility requirements: TRANSACTION TYPE Purchase transactions only. MAXIMUM GRANT AMOUNT Amount of assistance is based on the eligible school facility fees paid by the builder. Eligible applicants will receive either a partial or full rebate of the school facility fees paid by the builder, depending on which program they qualify for. REPAYMENT OF GRANT If the buyer occupies their home for five years, the full amount of the grant is forgiven. If the home is owner-occupied less than five years, the grant must be repaid on a pro rata basis. HOW TO APPLY Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com QUESTIONS Questions regarding this program should be directed to Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com
School Facility Fee Down Payment Assistance Program (SFF)
A conditional grant program that provides assistance to buyers of newly constructed homes throughout California.
Butte
Fresno
Imperial
Kern
Kings
Madera
Merced
Monterey
San Joaquin
Shasta
Stanislaus
Tulare
OTHER PARTNERSHIPS AND PROGRAM OPTIONS
Builder-Lock (BLOCK) Program
Builders/Developers may purchase forward commitments for permanent mortgage financing for CalHFA-eligible borrowers tied to their construction/marketing program at single family new-home developments anywhere in the state.
Builders/Developers may purchase forward commitments for permanent first mortgage financing for CalHFA-eligible borrowers tied to their construction/marketing program at single family new-home developments anywhere in the state. On any day, builders/developers may lock-in, through Adriana Toyama at 323 259-1773 or online through http://www.loanZdriect.com An interest rate for a pool of funds for the first mortgage products available on the date of the commitment for terms of 6, 9, or 12 months (nonprofits up to 18 months) into the future for commitment fees of 0.5%, 1.5%, and 2% respectively. BLOCK forward commitments may only be used for new construction housing.
As of August 1, 2007, CalHFA's interest only PLUSSM loan is no longer available through BLOCK forward commitments, as well as properties secured by manufactured housing.
A BLOCK forward commitment locks only the interest rate on the pool of funds for the first mortgage products available on the date of the commitment for the maximum term purchased.
NO CASH UPFRONT is required for six-month commitments as the fees are collected as a discount at loan purchase.
Fees for 9 and 12-month commitments are paid with one-half cash up front, one-half as a discount at loan purchase.
Commitment fees are charged only for the length of time used. Thus fees paid for long-term commitments may be reduced if loans are delivered for purchase earlier in the term.
Forward commitments with longer terms (BLOCK Program) can be utilized simultaneously and concurrently with 180-day no fee locks through the Single Loan (SL) process. Both are available through CalHFA's "Over-the-Counter" Lender Access System (LAS) through an approved CalHFA Lender.
Rolling Allocation Cap
For-profit developers are assigned allocations based on their CalHFA production for the most recent year. The allocation is restored, much like the "line of credit" concept, as loans are purchased. New developers are given a minimum allocation until a production level is established.
The nonprofit developer's cap is determined by their production with CalHFA over the past two years. Further limitations may be placed on commitments for the Self-Help Builder Assistance Program (SHBAP).
Commitment Terms/Fees:
| For-Profit Developers: | |
 180 Days* |
No Fee - Single Loan (SL) |
| 6 Months |
0.50% (0.50% at Discount) |
| 9 Months |
1.50% (0.75% Cash Up; 0.75% at Discount) |
| 12 Months |
2.00% (1.00% Cash Up; 1.00% at Discount) |
| Nonprofit Developers: | |
| 12 Months |
1.00% (0.50% Cash Up; 0.50% at Discount) |
| 18 Months |
1.50% (0.75% Cash Up; 0.75% at Discount) |
| Nonprofit Developers/SHBAP**: | |
| 12 Months |
1.00% (0.25% Cash Up; 0.75% at Discount) |
| 18 Months |
1.50% (0.25% Cash Up; 1.25% at Discount) |
*Nonprofit/SHBAP developers may use 180-day free locks also.
**SHBAP - Self-Help Builders Assistance Program
Interest rates for the BLOCK Program, as well as the resale program, are subject to change daily. Changes are announced periodically by Program Bulletin as well as appearing on our web site. Subordinate loans are not part of the BLOCK program, and are subject to availability, rates and terms in effect on the date the first mortgage is reserved. Except as noted above, all new construction loans will have access to the same CalHFA loan products, and be subject to the same program rules, including income and sales price limits. Builders/developers wishing to obtain more information about the BLOCK Program are asked to contact CalHFA Homeownership Programs.
Homebuyers interested in applying for financing, should contact Adriana Toyama at 323 259-1773 or online through http://www.loanZdirect.com
HomeChoice Program Information
A statewide program designed to assist lo