Today, California Housing Finance Authority (Cal HFA) announced they’ve decided to get back in the home financing business. That’s right folk’s, they’re offering an FHA Cal-HFA program at 4.000% interest rate. That’s not a misprint, 4% fixed, 30 year. It get’s better; in conjunction they’re offering a CHDAP 3% silent second that can be used for closing costs or down payment. The buyer must have 1% minimum of their own money in the deal.
The catch is income and loan limits based on the county the property is located. Properties are limited to single family; condos and PUD’s must be FHA approved developments.
NOT allowed are manufactured housing, properties sold at auction by builder, properties owned less than 90 days in which the sales price is greater than a 20% increase over the sellers cost of acquisition are NOT permitted. A word to the wise; be very cautious about FLIP properties because of extensive verification of improvement costs. Non-occupant co-borrower NOT allowed.
FHA mortgage insurance is in affect, maximum seller concession is 3% towards buyers CC. Primary residence purchase transactions ONLY. There’s a first time home buyers education program requirement prior to close.
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