Posted on: 30th Jun, 2009 03:54 am
California Housing Finance Agency has introduced California Homebuyer's Downpayment Assistance Program (CHDAP) to help people in getting a mortgage. It is a simple interest rate junior loan which would not exceed 3% of the sales price or appraised value of the property, whichever is less. This loan can be combined with the CalHFA or non-CalHFA conventional or government mortgage loan. Moreover, it is to be noted that CHDAP can be used either for closing costs or down payment assistance.
I searched on their website and they have introduced this facility for the purchase of the home only and not for the any other purpose.i.e.transfer of properties..
This is a good news in times of crisis.I must appreciate this new scheme's objectives and it will surely help those needy people.
This is a good news in times of crisis.I must appreciate this new scheme's objectives and it will surely help those needy people.
Hi all,
I'd like to mention here that everyone cannot qualify for this California Homebuyer's Down payment Assistance Program (CHDAP). One has to meet certain eligibility criteria in order to qualify for the down payment assistance. Given below are some of those eligibility requirements:-
1. One has to be a first time buyer.
2. He or she must use the property as his or her primary residence. Non-occupant borrowers are not eligible.
3. His or her income must not exceed HCD-defined moderate income limits as specified for the county in which you are making the purchase.
4. One must also meet the credit, income and other loan related requirements of the CalHFA Conventional Loan Underwriting Guidelines.
I'd like to mention here that everyone cannot qualify for this California Homebuyer's Down payment Assistance Program (CHDAP). One has to meet certain eligibility criteria in order to qualify for the down payment assistance. Given below are some of those eligibility requirements:-
1. One has to be a first time buyer.
2. He or she must use the property as his or her primary residence. Non-occupant borrowers are not eligible.
3. His or her income must not exceed HCD-defined moderate income limits as specified for the county in which you are making the purchase.
4. One must also meet the credit, income and other loan related requirements of the CalHFA Conventional Loan Underwriting Guidelines.
Hey Sara...It's really a great news for the borrowers in California. With the real estate crisis, most of the states had done away with the down payment assistance programs. With the introduction of this program again, lot of borrowers in California will be able to take a mortgage for their dream home.
In my opinion, the most important part of CHDAP is that the loan term will remain fixed for the whole term of the loan. Moreover, the minimum contribution from the borrower's end would be around 3% of the sales price.
The loan will become due on certain conditions. These include
In my opinion, the most important part of CHDAP is that the loan term will remain fixed for the whole term of the loan. Moreover, the minimum contribution from the borrower's end would be around 3% of the sales price.
The loan will become due on certain conditions. These include
- Refinancing the loan or paying off the first mortgage.
- Sale of the residence.
- In case of filing and recording of a "Notice of Default".
- Transfer of title.
It's good that CalHFA has decided to reintroduce the down payment assistance. What I like the most about it is, you needn't repay the funds until your home is sold off or refinanced.
What I've heard is, CalHFA is reviving 2 down payment assistance programs - California Homebuyer's Down Payment Assistance Program and the School facility Fee Down payment Assistance. The first one is typically meant for first time home buyers. The second one is a kind of school facility fee rebate and works more like a grant rather than a loan. As such, if a buyer occupies property for more than 5 years, he does not have to repay the School Facility Fee Down Payment Assistance.
What I've heard is, CalHFA is reviving 2 down payment assistance programs - California Homebuyer's Down Payment Assistance Program and the School facility Fee Down payment Assistance. The first one is typically meant for first time home buyers. The second one is a kind of school facility fee rebate and works more like a grant rather than a loan. As such, if a buyer occupies property for more than 5 years, he does not have to repay the School Facility Fee Down Payment Assistance.
