Major Programs

California has several low-income housing programs. First, first mortgage loan programs, called “Cal 30”, feature a fixed interest rate, fully amortized loan over a 30-year term. It has a maximum Loan-to-Value (LTV) of 95% and a maximum total Combined Loan-to-Value (CLTV) of 102%. Second, there are two programs of down payment assistance loan programs. Affordable Housing Partnership Program (AHPP) is a joint effort by CalHFA and cities, counties, redevelopment agencies and housing authorities whereby a deferred payment subordinate loan from a locality is utilized by the first-time homebuyer to assist them with down payment and/or closing costs.

CalHFA partners with over 300 localities (cities, counties, housing authorities, nonprofit entities, and redevelopment agencies) to offer the AHPP. This program is intended for low-income first-time homebuyers who meet specified income limits and who are purchasing a new or existing home anywhere in California. Following Table 3-1 shows program elements.

7) Established in 1975, CalHFA was chartered as the State’s affordable housing bank to make low interest rate loans through the sale of tax-exempt bonds. Bonds are repaid by revenues generated through mortgage loans, not taxpayer dollars.

<Table 3-1> Affordable Housing Partnership Program (AHPP) Elements Requirements Details and Reference Sources

First-Time Homebuyer

Borrower must be a first-time homebuyer purchasing a primary residence intended for owner-occupancy.

A borrower is considered a first-time homebuyer if they have not owned and occupied a home in the past three (3) years.

Income Limits Refer to CalHFA’s income limits established for the county in which the borrower is purchasing.

Sales Price Limits Refer to CalHFA’s published sales price limits for the county in which the property is located.

Citizenship Be a U.S. citizen, permanent resident alien or other qualified alien

Property Eligibility •Single family, one unit residence, including condo/PUD.

•Manufactured housing must meet eligibility requirements.

Available Through Localities and Approved Lenders

Refer to the Locality or CalHFA’s approved lender list for a lender in applicant’s area.

Other Requirements

Must qualify for and meet the requirements of the CalHFA first mortgage loan, the lender, the AHPP partner and the mortgage insurer/guarantor. Other program requirements may apply.

Second, California Homebuyer's Down payment Assistance Program (CHDAP) provides a deferred-payment junior loan – up to 3% of the purchase price, or appraised value, whichever is less – to qualified borrowers to be used for their down payment or closing costs (see Table 3-2). This junior loan may be combined with a CalHFA or non-CalHFA fixed rate, first mortgage loan.

<Table 3-2> California Homebuyer's Down payment Assistance Program Elements Requirements Details and Reference Sources

First-Time Homebuyer

Borrower must be a first-time homebuyer purchasing a primary residence intended for owner-occupancy.

A borrower is considered a first-time homebuyer if they have not owned and occupied a home in the past three (3) years.

Minimum Borrower Contribution

A minimum contribution of 3% of the sales price is required from the borrower(s) own funds. Please see an approved lender for complete details.

Income Limits Refer to HCD moderate income limits established for the county in which the borrower is purchasing.

Sales Price Limits

Refer to CalHFA’s published sales price limits for the county in which the property is located.

Citizenship Be a U.S. citizen, permanent resident alien or other qualified alien, if using in conjunction with a CalHFA first mortgage.

Property Eligibility

Single family, one unit residence, including

• condo/PUD.

•Manufactured housing must meet eligibility requirements.

Available Through Approved

Lenders

Refer to CalHFA’s approved lender list for a lender in your area.

Homebuyer Education

Homebuyer education is required for each borrower using this program. CalHFA will accept a homebuyer’s education counseling certificate of completion issued through Fannie Mae or Freddie Mac identified counseling administration agencies, mortgage insurance companies, or HUD-approved homebuyer counselors. CalHFA accepts education completion via online, face to-face, or phone.

•Fannie Mae Homebuyer Counseling Counselors/Administrators Search

•Freddie Mac Homebuyer Counseling Counselors/Administrators Search

•HUD-approved Housing Counselors

Other Requirements

Must qualify for and meet the requirements of the CalHFA first mortgage loan, the lender, and the mortgage insurer/guarantor. Other program requirements may apply; please contact an approved lender for more details.

Third, other partnerships and program options are Section 8 Housing Choice Voucher Program enables qualified first-time homebuyers to receive monthly assistance for homeownership expenses in lieu of monthly rent aid. The Section 8 Housing Choice Voucher Program enables qualified first-time homebuyers to receive monthly assistance for homeownership expenses in lieu of monthly rent aid. Pursuant to Congressional authority, HUD has authorized states and Public Housing Authorities (PHA's) to provide this assistance using funds available through the Section 8 rental voucher program. The PHA's may choose to participate in offering the Section 8 for homeownership but are not required to do so. Under the Program at least 30% of the eligible homebuyers' income will go to pay the homeownership expenses with Section 8 covering the remainder. The California Housing Finance Agency (CalHFA) does not provide funding or administer this program but has approved its use in partnership with the first mortgages and subordinate loans by those PHA's approved by CalHFA.

There are steps for PHA to become approved.

Step 1

• : PHA needs to submit in writing their desire to partner with CalHFA and attach copies of their Master Plan or 5-Year Plan and any other related material;

Step 2

• : Homeownership Special Programs staff will review the documentation submitted. The PHA will be contacted if further clarification is needed.

Step 3

• : Homeownership Special Programs will facilitate a meeting and/or conference call with the PHA and one or more of CalHFA's approved lenders (selected by the PHA) to discuss the requirements of both entities. Program qualifications and borrower eligibility will be disclosed and the most restrictive criteria will be identified. Additionally, lenders will be advised of the subsidy, known as the Housing Assistance Payment, which will be added to the borrower's gross income for CalHFA Tax Act Compliance.

Step 4

• : The PHA will be added to the list of approved PHA's to partner with CalHFA.

The PHA's will be solely responsible for all program eligibility, administration, training/counseling, reporting and annual review of the homeowners who receive Section 8 assistance. Eligible prospective homebuyers or those wanting more information must contact their local PHA for details. CalHFA and the PHA may have different eligibility requirements. The most restrictive requirements will apply. All prospective homeowners must be able to meet the following CalHFA Homeownership Program requirements: