San Diego real estate blog - Peter Toner

CalHFA stands for California Housing Finance Agency and was established in 1975 as the states “affordable housing bank.” It’s focus is on assisting first time home-buyers that are within specific lower and moderate income range brackets. These loan programs can be great for the first time home-buyer allowing them to borrow up to 100% financing for their home. Currently the CalHFA interest rates range from 5.5%-6.25%, with many different types of loan program options.

What’s the catch? Well there are a few, below is a list of requirements you must meet in order to be approved for a CalHFA loan.

• To go up to 100% Loan to Value you will need a 680 FICO or higher
• Up to 95% Loan to Value a minimum of 620-679 FICO score is needed
• Max Loan Amount/Sales Price for San Diego $697,500
• Income Limitations are Separated into Two Categories
  • Low Income
    • 1 or 2 persons max combined income $62,352
    • 3+ persons max is $71,705
  • Moderate Income
    • 1 or 2 persons max combined income $98,724
    • 3+ persons max is $115,178
• Must be a first time primary residence home-buyer, tax returns will be required to prove you are a first time home-buyer.
• Rates are determined on a number of factors, including the income bracket the borrower is in.

So who is a CalHFA loan best suited for? The first time home-buyer who has never owned a primary residence, who has clean credit, an income meeting the minimums required and lives in an area where the max limit sales price will not be an issue for their purchase. If you’d like to know further details on this kind of loan or what the current interest rates are being offered, let us know and we can get you in touch with our affiliate lender, Home Services Lending.