June 22, 2009

Financing Options

Posted to Kathy Mardiros, Real Estate Tips

While in recent years conventional financing with its many variations was the most popular financing option when purchasing a first home, today a myriad of financing options abound.

I attended a Financing 2009 seminar this morning where some of the new programs were discussed. One popular choice is the CalHFA program. The borrower must be a US citizen, permanent resident alien or qualified alien and must plan to occupy the property as a primary residence. There are income limits by county and the borrower must meet credit and loan requirements of the originating lender and CalHFA. There is a mortgage protection program should the borrower become involuntarily unemployed.

CalHFA has a Community Stabilization Program (CSHLP) designed to help first time buyers purchase vacant homes that are owned by participating financial institutions in certain areas of California hard hit by the financing crisis. Currently 13 counties are involved in the program including designated zip codes in Alameda and Contra Costa Counties.

The CalHFA SMART program is designed to help first time buyers purchase vacant homes owned by CalHFA statewide. The Cal30 conventional loan program is a conventional loan with 30 year amortization schedule and a fixed rate. This program allows for a 95% maximum loan to value ratio but must meet income limits by county location as well as family size and private mortgage insurance is required.

If you would like additional information on any of these programs, give me a call at 925-287-0550 and I will put you in touch with one of our loan counselors.

Posted by:Kathy Mardiros