CHFA Loans
"CHAFA" Mortgage Loan
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Important Note:
Temporary Suspension due to State Budget Shortfalls.
The CHFA, or "CHAFA"
as it is sometimes known, is operated by the California Housing Finance Authority. It is
designed to provide up to 100% of home loan financing to prospective eligible first-time
homebuyers. Program
available in California only.
Generally, the loan consists of a
standard 97% FHA - CHFA fixed-rate 30-year mortgage and a 3% CHFA down payment assistance
second mortgage, which is also called a "sleeping" or "silent" second.
The second mortgage is offered for 30 years at 3% simple interest. All payments are
deferred on this second mortgage until one of the following happens: the CHAFA first
mortgage becomes due and payable; the first mortgage is paid in full or refinanced; or,
the property is sold. Learn more about CHFA loans
by calling now: (800) 931-7377 Mon-Fri - 8:30am - 5:30pm or get
pre-qualified now for CHFA loan
The CHFA 100% Home Loan Program is
available to all low-income homebuyers in all 58 counties in California. Moderate-income
homebuyers are eligible only in the following counties:
In order to qualify for a CHFA loan, certain eligibility requirements must
be met. They are:
- Have an annual household/family income that
does not exceed income limits for the family size and county in which the home is located.
View current Calhfa income limits (.pdf
file)
- Property must be owner-occupied for the term
of the loan or until sold.
- Meet credit, income and loan requirements of
the CHFA lender and the mortgage insurer.
- Be a first-time homebuyer, which is defined
as a person(s) who has not had an ownership interest in their primary residence during the
previous three years. This requirement is waived if property is located in a
Federally designated Target Area.
- Have sufficient funds available to meet the
required down payment - 3-5% plus closing costs. Some restrictions apply to gift funds.
- Have the legal right to permanently reside
in the United States.
If you are buying a home and wish to use a
CHFA loan, please use our free loan pre-qualifcation form
CHFA
loans are subject to a Federal recapture tax. Recapture is a Federal income tax that
borrowers may have to pay if they sell or transfer their CHFA-financed home within 9
years.
A "Guide to Recapture
Brochure" explaining Recapture in detail is available to you by downloading it
>> Here
Additional CHFA loan information,
forms, income limits, price limits, etc. available by clicking >> Here
If you feel that the CHFA loan is right for
you, learn more about
 FHA loan qualifying
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