California is one of the hardest hit states when it comes to the housing crisis. But their could be good news as the state is trying to help potential homebuyers.
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.
Available APRs range from 6.60% - 14.15*, which includes the payment of a higher origination fee in exchange for a reduced interest rate, which is not available to all applicants or in all states.(the advertised APR includes a combined 0.25% discount for opting into a credit union membership (0%) and enrolling in autopay (0.25%) as well as payment of higher origination fee in exchange for a reduced rate, which is not available to all applicants or in all states). The lowest APRs are only available to the most qualified applicants, depending on credit profile and the state where the property is located, and those who also select five year loan terms; APRs will be higher for other applicants and those who select longer loan terms. Rates change frequently so your exact APR will depend on the date you apply. APRs for home equity lines of credit do not include costs other than interest. You will be responsible for an origination fee of up to 4.99% of your initial draw, depending on the state in which your property is located and your credit profile. You may also be responsible for paying the costs of valuation if an AVM is not available for your property ($180), manual notarization if your county doesn’t permit eNotary ($380), and recording fees ($0 - $315) and recording taxes, which vary by state and county ($0-$1,400 per one hundred thousand dollars borrowed). Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.
Flexible terms, borrow $15K-$400K, redraw up to 100%
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Home Equity Loans & Refinance – Cash out
Customized rate quote with no impact to credit
Low Rates, Quick Approvals, Wide Range of Products
The Figure Home Equity Line is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw.
Fastest way to turn home equity into cash
Flexible terms, redraw up to 100%, borrow $15k-$400k
Approval in as little as 5 minutes. Funding in as few as 5 days.
Use to consolidate debt or finance your next home project
1. APRs for initial advances range from 8.25% to 18.00% based on funded HELOCs as of September 2024. Your actual rate will depend on many factors such as your credit history, loan-to-value ratio, line amount, loan term, lien position, and property state. The lowest rates are only available to the most qualified applicants. The APR is variable, but the APR that will apply to each draw will be fixed on the date the draw is made.
2. As of October 2024, 10% of funded HELOCs achieved a closing timeline of 6 days or less and a funding timeline of 10 days or less. This timeline assumes consumers close with our remote online notary, provide supporting documentation promptly, and ensure the information provided is accurate and consistent with our verification process. Delays, discrepancies, and other unforeseen factors may impact the closing timeline. MBA’s 2024 Home Lending Study reports an average industry closing time of 31 days.
3. A Home Equity Line of Credit has a variable rate. The APR may change, but the APR that will apply to each draw will be fixed on the date the draw is made. Your APR will be the Prime Rate at the time of draw plus a margin fixed for the life of the HELOC.
As low as 8.25% APR on your initial draw*
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