Great news for California home buyers!  This spring the California Housing Finance Agency will make it possible for first time home buyers to qualify for a 40-year loan without even needing a down payment when they meet the CalHFA's first time buyer criteria.

CalHFA's 40-year loan minimizes risky financing for first time buyers such as adjustable rate mortgages and interest only loans.  CalHFA's 40-year loan maintains the same payment for the life of the loan.

The new CalHFA 40-year also provides buyers with a terrific option to qualify with less income.  For example: to qualify for a 30-year CalHFA loan for $355,000 buyers would need household income of $72,500 per year.  However, with a 40-year loan for the same $355,000 purchase price it would only take an annual income of $68,400 to qualify. 

With housing prices continuing to rise (the countywide median home price in Sacramento County in January '06 was $352,000) around the state this will enable many potential buyers the opportunity to enjoy the benefits and pleasures of owning a home.

For more information on the CalHFA 40-year loan and their other buyer assistance programs please click on CalHFA and learn more.