CalHFA and Down Payment assistance programs deliver 100% Financing in the Bay Area-

istock_000000215979_l1.jpgRecently CalHFA announced that effective Tuesday, March 25, 2008, the maximum Loan-to-Value on our conventional mortgage loan products will be limited to 95%. This raises the question: “How do I continue offering my clients 100% financing through CalHFA?”

Fortunately, this question has a relatively easy answer:  Layering multiple loans. 

Many, if not most, cities and counties in California offer one or more forms of down payment assistance for home-buyers.  This down payment can usually be layered with a CalHFA first loan through the Affordable Housing Partnership Program. The AHPP is a collaboration between CalHFA and more than 300 cities, counties, housing authorities, nonprofit entities and redevelopment agencies to help low income home-buyers purchase their first home.  To find a local AHPP participant in your area, simply visit this list of participating agencies

Of course, CalHFA continues to offer a variety of other down payment assistance programs, including the CalHFA Housing Assistance Program (CHAP), the California Home-buyer’s Down payment Assistance Program (CHDAP) and the High Cost Area Home Purchase Assistance Program (HiCAP).

And don’t forget about our Extra Credit Teacher Program for employees in High Priority Schools, and the School Facility Fee grant for buyers of newly constructed homes.  Details on all of these programs can be found at this web site.

Granted, some of these subordinate programs can be used together and others cannot, but no matter how you slice it, 100% financing is still attainable, despite the volatile housing climate.  

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