California Homebuyer’s Downpayment Assistance Program Product

HOMEbuyersWP

CALIFORNIA HOMEBUYER’S DOWNPAYMENT ASSISTANCE PROGRAM

PRODUCT

• Owner Occupied Purchase, 1 unit dwelling only (5 acre maximum & property cannot be income producing)

• Up to 3% of Sales Price or value whichever is less @3.25% simple interest with deferred payments

Note: repayment of the principal and interest on subordinate loan shall be due and payable at the earliest of the following:

1) transfer of title,

2) Sale of the property,

3) Payoff or refinance of 1st TD,

4) Recording of a Notice of Default.

• Borrower must be a first-time homebuyer (cannot have owned a property in the last 3 years)

•Homebuyer education must be completed by all borrowers.

• Max $250 processing fee allowed for 2nd TD (2nd loan package must be submitted & disclosed)

 

PRODUCT REQUIREMENTS

• Sales Price limit applies per County

• Household income limit applies per County

• Please check limits at http://calhfa.ca.gov/ or CHDAP manual.

(may be subject to change annually)

(Note: Household income is defined as the annualized gross income of a mortgagor and any other person who is expected to liable on the mortgage, be vested on title and live in the residence)

 

UNDERWRITING CRITERIA

• DU Approved/Eligible required – Manual UW is NOT allowed

• Max. 43% DTI (based on qualifying income not household income)

• Non-occupant co-borrowers are not allowed

• FHA/VA/USDA – min. 640 qualifying credit score required

• Conventional @95% LTV or below – min. 640 credit score required

• $1,000 min. required investment for 680 qualifying credit score or higher (Gift allowed DU approval)

• $1,500 min. required investment for 640 – 679 qualifying credit score (Gift allowed with DU approval)

• 3 years 1040’s or IRS 1040’s Transcripts required (signed 4506-T required in file)

• 2 Year Home Warranty required (except new construction)- If paid by borrower cost can be used toward the min. required investment

• All documents must be dated within 60 days of submission to CALHFA (includes credit report, VOE’s/VOD’s, paystubs & bank statements)

(Note: Community property law may imply an interest in a property if when the non-purchasing spouse owns an O/O property)

 

REQUIREMENT FORMS

• Homebuyer Education Certificate (all borrowers)

• Tax Return Affidavit

• Military Service Questionnaire

• Borrower Affidavit of Household Size

• Borrower’s Certification & Authorization to release information

 

INTERNAL PROCESS

1. A purchase contract must be fully executed prior to reservation

2. Lender to reserve CHDAP funds prior to submission of 2nd TD package to CALHFA (90 day expiration or 180 day expiration required for new construction)

3. Loan can be locked with CALFHA when all PTD conditions are signed off by CHDAP U/W (60 day expiration required for locks)

4. All loans must be approved, closed, delivered & purchased prior to reservation expiration date.

 

HANDBOOK AND FORMS PLEASE VISIT

http://calhfa.ca.gov/homeownership/programs/index.htm

TALK WITH A LOAN SPECIALIST TODAY

Your Loan in the Valley

818 810 4646

 

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Posted on May 16, 2014, in AGENT TRAINING, LOAN SPECIALIST, REALTORS and tagged , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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