The California Housing Finance Agency (CalHFA) made it easier for Riverside County first time home buyer’s to qualify for the CHDAP 3% down payment/closing cost assistance program. This will greatly benefit people buying in Riverside County cities of Temecula, Murrieta, Menifee, Corona, Riverside, Lake Elsinore, and Moreno Valley. Why? Because CalHFA reduced the buyers minimum financial contribution to just 1%!
UPDATE: CalHFA DISCONTINUED this CHDAP program and replaced it with the MyHome Assistance Program. ==> Read details about MyHome Assistance program.
What is CHDAP: The CHDAP is a 3.25% deferred payment junior/2nd loan up to 3% of the purchase price. This 3% can be used to pay your down payment or closing costs. Yes, California will actually loan you money and not require you make a monthly payment.…it’s almost like a grant in this aspect. Crazy huh? CHDAP stands for California Housing Downpayment Assistance Program.
Where is it Available: The CalHFA CHDAP 3% down payment assistance program is available for all counties in California. This includes cities of Temecula, Murrieta, Menifee, Winchester, French Valley, Corona, Riverside, Lake Elsinore, Canyon Lake, Sun City, Moreno Valley, Chino, Chino hills, Norco, Ontario, Rancho Cucamonga, Fontana, and all cities in California.
Who is Eligible: First time home buyers purchasing a primary residence. If you haven’t owned a home in the last three years, you qualify. This means if you had a foreclosure or short sale, you may qualify after your three year waiting period. This requirement is waived if you are a qualified Veteran or the property is located in a designated target area. (so it is available if you are NOT first time home buyer if buying in a target area or a qualified Veteran!!
Property Eligibility: Single family one unit residences only. Manufactured housing is not allowed. Condominium’s are allowed but extremely difficult right now to get qualified…..call me for reasons why. UPDATE – CHDAP now allows FHA flips less than 90 days.
Income Limits: This program is to help first time buyers in the low to moderate income range purchase a home. The limits are dependent on the number of people living in the home and the county. See 2013-2014 CHDAP income limits ==> http://homeloanartist.com/2013/08/2013-2014-chdap-income-limits/
- Riverside & San Bernardino County: Range is from $54,600 to $102,950 depending on number of people in the house.
- Orange County: Range is from $73,250 to $138,150 depending on number of people in the house.
- Los Angeles County: Range is from $52,900 to $99,800 depending on number of people in the house.
- San Diego County: Range is from $63,400 to $119,600 depending on number of people in the house.
Sales Price Limits: The maximum sales price can vary depending if the home is an existing resale home or new construction and if the home is in a targeted or non-targeted area. I know, can they make it more confusing?
- Riverside & San Bernardino County: Max sales price in non-targeted area is $450,000 and $550,000 in a targeted area
- Orange County: Max sales price in non-targeted area is $656,775 and $802,725 in a targeted area
- Los Angeles County: Max sales price in non-targeted area is $656,775 and $802,725 in a targeted area
- San Diego County: Max sales price in non-targeted area is $627,750 and $767,250 in a targeted area
Question #5: Does loan approval take longer for this program Answer: Not really. Review time by CalHFA is 4-5 days. If we receive all your pre-approval documentation on time and in order, we can still close in 30.