News Wire: Changes to State Down Payment Assistance Programs

I'll make this short...

Last Friday the state's homeownership department (CalHFA) announced some significant changes to some of their down payment assistance programs. Here are the changes and what they mean:

• The maximum loan amount for CHAP has been decreased from three percent (3%) to two percent (2%) of the lesser of the sales price or appraised value.

• CHAP now can only be used in CHAP designated areas

• CHAP cannot be combined with a HiCAP second loan

• CHAP can be used with CalHFA conventional loans; including, interest only, 30-year fixed and 40-year fixed)

• CLTV cannot exceed 102% for CHAP and CHDAP

• Maximum HiCAP loan amount has been changed from $7,500 to four percent (4%) of the lesser of the sales price or appraised value

• HiCAP cannot be combined with CHAP

• HiCAP cannot be used in conjuction with an FHA-insured first mortgage loan

Source

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News Wire: Even Teachers Need Extra Credit

Special Home Buying Reaches Nearly 1,800 Teachers

from LAWatts.com

Nearly 1,800 teachers, administrators, classified employees, and other staff members who serve in California’s high priority schools (API Ranks 1-5) have taken advantage of the Extra Credit Teacher Program (ECTP), a special first-time home buying program administered by the California Housing Finance Agency.

The program was designed to bring quality teachers to the students who need them the most, and at the end of the day, enables them to go to the place they need the most—their own home.


Since the Extra Credit Teacher Program was launched in July 2001, the California Housing Finance Agency has financed more than $461 million in first mortgage loans and provided more than $19 million in down payment assistance through the program. These dollars add up to 1,790 educators who are now first-time homeowners, thanks to CalHFA and the ECTP.


This statewide financial program combines deferred down payment assistance, up to $15,000, with a 30-, 35- or 40-year first mortgage loan at a low interest rate. Interest on the down payment assistance loan is forgiven if the borrower remains employed at a high priority school for three years, and no payments are required on the second loan until the home is either sold, refinanced or paid in full.


Information: www.calhfa.ca. gov or (877) 9-CalHFA (877-922-5432).

link to article: http://www.lawattstimes.com/articles/2007/12/19/education/education1.txt



Want more information about CalHFA ECTP and other programs for first-time homebuyers? Call (323) 834.1434 or visit http://www.latmap.com