This is unfortunate news that came quickly and unexpectedly. CalHFA is a state-specific governmental agency that helps first time homebuyers get into their first home via down payment assistance programs and other solutions. CalHFA has been instrumental in helping many people become homeowners, but this news will now stall that process…
The news bulletin states that certain programs are suspended until the financial markets stabilize.
All loan programs except for the 30 Year Fixed are discontinued (no more 40 Year Fixed loan or 5 Year Interest-Only period).
The more difficult news is that a couple of excellent down payment programs are also suspended. A teacher-assistance program (3% of sales price) is still available, plus a lower-income program also remains (another 3% of sales price). Qualifying income for the latter in Santa Clara County is $88,600 and below.
What this means: The program still exists, but finding a loan that you can qualify for has now become more difficult and our options further limited. If you’re in the process of receiving CalHFA financing right now and your loan was not locked in, then the suspended loan product or down payment assistance program will NOT be honored.
This is the lending landscape we’re in right now – from one day to the next, a program or product may be gone. To assure and guarantee prices and loan structures that are offered on any given day, the only option is to lock it in and close the loan – it may not be there tomorrow.
