CALHFA Program

    CALHFA Program

    Home Buying

    February 25 2019

    The CalHFA FHA program is an FHA-insured loan featuring a CalHFA fi xed interest rate mortgage. This is a 30 year mortgage and can be combined with either the MyHome Assistance Program (MyHome) or School Teacher and Employee Assistance Program (School Program).

    What are the Borrower Requirements?

    Each borrower must be either a citizen or other National of the United States, or a “Quali ed Alien” as de ned at 8 U.S.C § 1641. It will be a requirement as well to meet the credit, income and loan requirements detailed in this program handbook, as well as CalHFA’s Lender Manual, Fannie Mae, the CalHFA-approved lender, the mortgage insurer and CalHFA’s master servicer’s requirements. And there are other important requirements to mention:

    • You need to be an eligible homebuyer(This program is available for both rst-time and non- rst-time homebuyers.)
    • Homebuyer Education. Homebuyer Education counseling is required for one occupying rst-time homebuyer. Homebuyer Education is not required for non- first-time homebuyer(s).
    • Face-to-Face Homebuyer Education through NeighborWorks America or through one of the HUD approved Housing Counseling Agencies.
    • (…)

    If you want to know more about other specific requirements, feel free to reach me out and I’ll answer any of your questions.

     

    Owner Occupancy

    When it comes to occupancy, we need to know that all borrowers must have their property as their primary residence within sixty days of closing at least. Also, non-occupant co-borrowers or co-signers will be allowed.

    What are the Property Requirements?

    Here are some of the most important requirements to take into account in the CAHLFA Program:

    • Sales price of the home cannot exceed CalHFA’s sales price limits established for the county in which the property is located
    • Property must be a single-family, one-unit residence, including FHA- approved condominium/PUDs. It
    • is the responsibility of the lender and not the master servicer to meet these guidelines.
    • Manufactured homes are permitted with the following parameters:
    • * Minimum credit score: 660
    • * Maximum LTV: 96.50%
    • *  Maximum CLTV: 105.00%
    • * Singlewide manufactured homes are not eligible
    • *  Not available on Limited 203(k)
    •  Manual Underwriting is not per- mitted on manufactured homes
    •  All manufactured homes must meet FHA 4000.1, Master Servicer and CalHFA loan pro- gram requirements

    Here are the type of mortgages that CAHLFA will allow:

    • 203(b) Home Mortgage Insurance
    • Limited 203(k)
    • LTV and CLTV
    • Loan-to-Value (LTV) to follow FHA rst mortgage underwriting guidelines
    • Combined Loan-to-Value (CLTV) cannot exceed 105.00%
    • Maximum Loan Amount
    • The maximum loan amount (excluding UFMIP) cannot exceed FHA loan limits for the county in which the property is located.
    • FHA High Balance Loan Limits
    • All loans with a base loan amount exceeding $484,350 will be subject to an additional fee.  

    What are the Income Requirements’

    Lenders are required to calculate income to qualify borrower(s) for loan approval using FHA guidelines. CalHFA will use the lender’s credit qualifying income to determine if the loan exceeds the maximum program income limit. Income not used by the lender for credit qualifying will not be used by CalHFA.

    Qualifying Ratios

    The maximum total Debt-to-Income (DTI) ratio cannot exceed 45.00% for automated underwriting or 43.00% for manual under- writing. A MCC may not be used for credit qualifying purposes.

    The minimum credit score required in the CAHLFA Program is 640. If someone does not have a credit score, that person will still be eligible as long as there’s another occupant that meets the minimum requirements to apply.

     

    Mandatory Home Warranty Insurance Coverage

    CalHFA requires that all rst-time homebuyers get a one-year home warranty protection policy. However, non-rst-time homebuyers will not have to meet this requirement. This insurance will have to cover the following:

    ›  Water Heater(s)

    ›  Air Conditioning

    ›  Heating

    ›  Oven/Stove/Range

    Loan Submission Process

    A lender makes reservations through CalHFA’s Mortgage Access System (MAS). Refer to the Loan Submission Checklist for minimum documentation requirements.

    CalHFA FHA loan submission packages are to be sent electronically through MAS.

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