New CalHFA Loan Guidelines Now in Place
Orange, California (PRWEB) July 15, 2013
Broadview Mortgage specializes in working with first time homebuyers and down payment assistance programs.
The California Housing Finance Agency (CalHFA) is a primary source of funds for first time homebuyers seeking to use these assistance programs. On July 1st CalHFA changed some of the qualifying guidelines for access to state funds.
“Interestingly enough, these changes are being made ‘in anticipation of future CalFHA first mortgage loan programs.” says Scott Schang, a branch manager for Broadview Mortgage. “This begs the question, what new first mortgage programs is CalHFA considering?”
Effective July 1st, 2013 the California Homebuyer’s Downpayment Assistance Program guidelines will be revised in anticipation of future CalHFA first mortgage loan programs.
These revisions will streamline CalHFA’s underwriting process:
-Maximum Allowable Combined Loan to Value (CLTV) of 103%
-Maximum Allowable total Debt to Income (DTI) ratio of 43%
-Tax savings derived from Mortgage Credit Certificates (MCC) may not be used for credit qualifying purposes (including DTI calculations or income qualifying purposes)
-A minimum borrower contribution will be based on the middle credit score of the lowest scoring borrower will be as follows:
640 to 679 = $ 1,500
680+ FICO = $ 1,000
The minimum required borrower contribution can be from borrower’s own funds or gift funds, as allowed per first mortgage guidelines.
“The first clue is the 43% debt to income ratio,” says Schang, “which falls under Fannie Mae’s definition of a Qualified Mortgage. This is a more conservative fit of acceptable underwritten guidelines imposed late in 2012.”
A reduced being conventional loan program that CalHFA is looking into may be the Fannie Mae “My Community Mortgage”. The MCM program is already available, and is a great opportunity for those that qualify.
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