The California Housing Finance Agency (CalHFA) announced this week the launch of a new fixed-rate, 30-year, FHA-insured mortgage program for low- and moderate-income home buyers.

MAKING SENSE OF THE STORY FOR CONSUMERS

• CalHFA provides financing and programs for low- and moderate-income Californians.  The program announced this week enables qualified, first-time home buyers in California to receive a 30-year mortgage with a fixed interest of approximately 4 percent.
• The CalHFA program includes upfront mortgage insurance, which is required for most FHA- insured home loans.  Borrowers are eligible to use the California Home buyer’s Down payment Assistance Program, which can provide up to 3 percent of the purchase price of the home for down payment or closing costs.
• In addition to being a first-time home buyer – defined under federal law as not having owned and occupied a home for the past three years – borrowers also must meet income limits, which vary by county and family size.  Income limits can be found on the CalHFA Web site at http://www.calhfa.ca.gov/homeownership/limits/income/income-main.pdf.
• Borrowers also must purchase homes within FHA’s loan limit and CalHFA’s sales price limits.  Mortgage loans are limited to $417,000 under FHA guidelines, while CalHFA’s sales price limits vary by county.
• Additionally, borrowers must meet the minimum credit score requirements and maximum debt-to-income ratios and complete a HUD-approved home buyer education program.  More information about the CalHFA program can be found at CalHFA Home Page.

Read the full story.