Buyers, want better interest rates and terms? Look at CalHFA!

Government loan programs have better rates and conditions for many buyers!!

by: Ye Gong

I recently attended a CalHFA first time buyer purchasing seminar. I was amazed at the government's effort to encourage home ownership. I feel the government program has been extremely under-served in the past few years. .....................CalHFA offers: ........................- Deferred Down Payment Assistance ........................- Zero Downpayment ........................- Below market interest rate fixed for 30 years at 6.375% for one loan ........................- Interest only option available for the first 5 years ........................- Automatic mortgage protection program for up to 6 months Part of the reason is that there have been so many different products for first time buyers at very competitive rates for a long time. Nobody really took a hard look at the government programs. All of sudden though the piggy back loans are going away, the traditional lenders are asking borrowers to pay PMI, and all of sudden the government programs are becoming much more viable options for borrowers to pay close attention to. Two things I learned about these government programs, are summarized as follows: 1st - Loan amounts are much more generous than most people think. One of the assumptions for government programs is that loan amounts tend to be very low. Although FHA definitely has its limit in the high 300,000's, CALHFA loan amounts are much higher. Depending on whether it is new construction or resale, loan amounts can be as high as mid 600,000's. Imagine buying a piece of property for $660k with one loan at 6.5%, 30 year fixed interest only. That is an unbeatable rate. 2nd - You can be eligible for these products even if you earn a good income. The income limits for San Francisco and San Mateo counties for 1 or 2 persons are $121,893. (contact me for income limits in other counties) Lastly, and a very important feature, is the mortgage protection feature that these programs offer. You can get up to 6 months of protection with payments as high as $2,500 a month. With all these great features, people who have stable jobs should look closely at their life time goals to see if home ownership is a viable one you. With prices declining in most parts of California and the USA and rates continuing to slide to favorable levels, it is a golden opportunity to buy, as long as you find affordable financing options for yourself. Why not look at these government options and see if they are right for you? Buyers and Realtors, contact me now for a FREE report that discusses these programs in more detail.