It would be nearly impossible to argue that California has not suffered greatly from the recent mortgage crisis. In fact, California has been one of the hardest hit states in the nation when it comes to the housing problem in recent years. It may even be the hardest hit, but it would be in competition with Michigan, Nevada and a couple other states. But that is why the CalHFA, or California Housing Finance Agency, recently announced that it would help some homeowners who are trying to put a decent down payment on a new home.
According to the recent announcement, the CalHFA is offering up to 3 percent to homebuyers who meet income requirements. Those requirements will vary between counties and the homebuyers will need to put an application in with the California Homebuyer’s Downpayment Assistance Program in order to be eligible for the 3 percent. The money can either go towards the purchase price of the home as a down payment or it can go toward the closing costs and fees of the new home.
Currently, the agency is unsure about how many people will qualify for the financial assistance. To help matters along, CalHFA has also launched a new 30-year fixed-rate mortgage which will be backed by the FHA to help attract the potential homebuyers who are unable to afford the home prices right now. As the requirements vary by county, it is difficult to spell out any eligibility standards in general, but Los Angeles County requires eligible participants to make less than $111,020 per year and the loan limits are $417,000. In addition for this particular country, potential homebuyers must have a credit score of at least 620 and they will need to complete a homebuyer education program before being considered eligible.
According to a spokesperson for the program, the state’s real estate market will still be fragile for some time to come due to the high unemployment rates and the housing prices. However, this new opportunity will be a big step in stabilizing the state’s real estate market while addressing California’s larger needs.
CalHFA has received nearly $700 million in funds from the Hardest Hit Fund to help get these opportunities off the ground for people trying to buy a home but cannot afford the down payment. The funds are also allocated to help homeowners who have fallen behind on payments and other troubled homeowners. Hopefully, this will be a step in the right direction for the Golden State’s many financial troubles.
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