Good News

Happy New Year!  We hope this message finds you and your family enjoying the holiday season and looking forward to a wonderful 2015.

 

 

It is an especially good time for first time buyers with several options for down payment and closing cost assistance.   
A first-time homebuyer is defined as someone who has not owned and occupied their own home in the last three years. That means if you've never owned a home, you're a first-time homebuyer.  It also means that if you owned your home three or more years ago, but sold it, you are right back to being a first-time homebuyer again, and you can take advantage of all of the benefits of CalHFA's first-time homebuyer programs.

California Housing Finance Agency, commonly known as CalHFA, has recently applied significant upgrades.

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Cal-Plus with ZIP (Zero Interest Program) - CalPlus is an FHA loan offered by CalHFA where the interest rate is set by the program.  Buyers are required to use CalHFA’s first mortgage to qualify for the “Zero Interest Program”.  The ZIP is automatically approved once you are approved for the first mortgage and can be applied to down payment assistance or closing costs.   The ZIP assistance is the equivalent of 3.5% of the first loan amount, including upfront mortgage insurance.  ZIP is a silent second mortgage and there is no payment due for the life of the first loan, until you sell or refinance the property.

 

California Homebuyer Down payment Assistance Program - CHDAP is a flexible buyer assistance program available to California homebuyers that meet income limit requirements.  CHDAP is a silent 2nd mortgage that does not require payments for the life of the 1st loan, until you sell of refinance the property.  CHDAP allows an eligible buyer to use up to 3% of the Purchase Price (or appraised value, whichever is lowest), and does carry an interest rate which has historically been far below market.  This loan accrues simple interest which is paid when the loan is paid off.

 

Extra Credit Teacher Program - The ECTP program was discontinued and is being reintroduced, this program is designed to include more buyers than before.  ECTP is a silent second mortgage that can be used in addition to a CalHFA first mortgage (CalHFA FHA or Cal-Plus with ZIP).  Eligible buyers include any employee of a district directly serving a high priority school with a State of California API (Academic Performance Index) of 5 or less.  Homeowners that remain working in an eligible API school after 3 years will have the interest of the ECTP second completely forgiven, and converted to a zero interest loan for the remainder.

 

Homebuyer Grants, No Interest | Not Paid Back CHF Platinum Grant - Similar to the ZIP and ECTP programs, this homebuyer assistance grant is attached to a first mortgage offered by the program.  Choose a 3% or a 5% grant depending on the interest rate you choose on your first mortgage.  The grant is based on a percentage of the sales price or appraised value, which ever is lowest.  Eligible mortgages are FHA, VA or USDA loans offered by the CHF program.  

We recommend that you talk with a skilled lender to take advantage of these programs and suggest Denise Bizzy, Loan Consultant with iMortgage.  Denise can be reached directly on her cell 661-510-9000 , at her office 661-414-0091 or via her email denise.bizzy@imortgage.com.
 

We would also love the opportunity to work with you on the sale of a property or purchase of a home.   Call us for a free property valuation and marketing program customized for your property.  

Looking to make a purchase?  We offer concierge sales services with custom searches for properties just for you.

Feel free to reach out at any time and we'll make sure we are available to assist you.

All the best,

Joe & Katie