CHFA Loans
"CHAFA" Mortgage Loan
...............................................................................The CHFA, or "CHAFA"
as it is sometimes known, is operated by the California Housing Finance Authority. It is
designed to provide up to 100% of home loan financing to prospective eligible first-time
homebuyers. Program
available in California only.
Generally, the loan consists of a
standard 97% FHA - CHFA fixed-rate 30-year mortgage and a 3% CHFA down payment assistance
second mortgage, which is also called a "sleeping" or "silent" second.
The second mortgage is offered for 30 years at 3% simple interest. All payments are
deferred on this second mortgage until one of the following happens: the CHAFA first
mortgage becomes due and payable; the first mortgage is paid in full or refinanced; or,
the property is sold. Learn more about CHFA loans
by calling now: (800) 931-7377 Mon-Fri - 8:30am - 5:30pm or get
pre-qualified now for CHFA loan
The CHFA 100% Home Loan Program is
available to all low-income homebuyers in all 58 counties in California. Moderate-income
homebuyers are eligible only in the following counties:
In order to qualify for a CHFA loan, certain eligibility requirements must
be met. They are:
- Have an annual household/family income that
does not exceed income limits for the family size and county in which the home is located.
View current Calhfa income limits (.pdf
file)
- Property must be owner-occupied for the term
of the loan or until sold.
- Meet credit, income and loan requirements of
the CHFA lender and the mortgage insurer.
- Be a first-time homebuyer, which is defined
as a person(s) who has not had an ownership interest in their primary residence during the
previous three years. This requirement is waived if property is located in a
Federally designated Target Area.
- Have sufficient funds available to meet the
required down payment - 3-5% plus closing costs. Some restrictions apply to gift funds.
- Have the legal right to permanently reside
in the United States.
If you are buying a home and wish to use a
CHFA loan, please use our free loan pre-qualifcation form
CHFA
loans are subject to a Federal recapture tax. Recapture is a Federal income tax that
borrowers may have to pay if they sell or transfer their CHFA-financed home within 9
years.
A "Guide to Recapture
Brochure" explaining Recapture in detail is available to you by downloading it
>> Here
Additional CHFA loan information,
forms, income limits, price limits, etc. available by clicking >> Here
If you feel that the CHFA loan is right for
you, learn more about  FHA loan qualifying
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