California Real Estate | Homes for Sale | Blog

Is it your first time buyimg a house in California? Do you have a low credit score, no money to put down and not much money in your bank account? Are you starting to believe that your chance of getting a good deal on California real estate is zero? Do you feel like it’s impossible?

If you are in this category then this programs is just what you need. This program makes 100% financing a reality and covers all of your closing costs as well. This program is 100% legal because it is backed by a secure government agency. I know that this is just the opposite of what you are hearing and seeing in media everyday about California real estate. Across the United States, there is a dramatic rise in mortgage defaults. Many lenders have no choice but to shut their doors or create loans with much stricter guidelines and higher rates. The secondary mortgage markets are having second thoughts regarding the buying pool of mortgages from lenders because of these defaults. Who can blame them?

Those who are experienced enough will instantly point out that FHA and VA serves as guarantors to the performance of their loans. Both of these institutions are government programs. FHA can give you 97% while VA can provide you 100% but strict restrictions apply.

So what is this program for California real estate first time buyers? This program is called CalHFA. It has been around since 1975. CalHFa means California Housing Finance Agency. It offers below market interest rate mortgage programs ranging from very low to moderate income first time buyers. Who is considered as a first time buyer by CalFHA? You are a first time buyer if you have not owned a home in the last three years. CalHFA provides financial backing by selling tax spared Mortgage Revenue.

Here is the most exciting part of the program. CalHFA makes it possible to purchase a home with a lower credit score and no money down. It will also assist in paying your closing costs. They are able to do this with a FHA loan, a VA loan, a regular loan and a Jumbo loan. CalHFA offers several loan programs that suit the need of the prospective buyer. The interest only PLUSSM with up to 100% financing and borrowers can pay only the interest for the first five years of a 35 year term. There is also the 40 and 30-Year Fixed Mortgage which both offers up to 100% financing with a 40/30 year term and a lower market, fixed interest rate.

However there is a single string attached to these loan programs. According to the CalHFA website “CalHFA does not lend money directly to consumers. CalHFA works through and uses approved private lenders to qualify consumers and to make all mortgage loans.” All you need to do is to look for a mortgage professional certified to complete these programs.

This entry was posted on Sunday, March 23rd, 2008 at 8:48 pm and is filed under California. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.