Low Down Payment CalHFA Home Loans

CalHFA Homeownership Programs

FIRST MORTGAGE LOAN PROGRAMS CalHFA Conventional Loans interest only PLUSSM This conventional mortgage loan offers up to 95% financing and allows borrowers to pay only the interest for the first five years of a 35-year term. After that, borrowers pay principal and interest at the same low, fixed interest rate for the remaining 30 years. 40-Year Fixed Mortgage This conventional mortgage loan offers up to 95% financing with a 40-year term and a low, fixed interest rate. 30-Year Fixed Mortgage This conventional mortgage loan offers up to 95% financing with a 30-year term and a low, fixed interest rate. Government Insured/Guaranteed Loans 30-Year Fixed Government Insured/Guaranteed Mortgage This program is for mortgage loans that are insured or guaranteed by FHA, VA or USDA and features a 30-year term with a low, fixed interest rate. Real Estate Owned (REO) Loan Programs CalHFA Community Stabilization Home Loan Program This program helps first-time homebuyers purchase vacant homes that are owned by participating financial institutions in certain areas of California.   DOWN PAYMENT ASSISTANCE LOAN PROGRAMS Affordable Housing Partnership Program (AHPP) A joint effort by CalHFA and cities, counties, redevelopment agencies and housing authorities whereby a deferred payment subordinate loan from a locality is utilized by the first-time homebuyer to assist them with down payment and/or closing costs. CalHFA Housing Assistance Program (CHAP) Offers a deferred-payment second loan of an amount up to the lesser of two percent (2%) of the purchase price or appraised value. California Homebuyer’s Downpayment Assistance Program (CHDAP) Offers a deferred-payment junior loan of an amount up to the lesser of three percent (3%) of the purchase price or appraised value. Extra Credit Teacher Home Purchase Program (ECTP) A low interest rate CalHFA first loan, together with a forgivable interest CalHFA junior loan to assist eligible teachers, administrators, staff members and classified employees to purchase their first home. High Cost Area Home Purchase Assistance Program (HiCAP) Designed to assist first-time homebuyers in the highest housing cost areas of the state. School Facility Fee Down Payment Assistance Program (SFF) A conditional grant program that provides assistance to buyers of newly constructed homes throughout California.

Search for homes at wwwCentralValleyHomes.com

CAROL PERDEW
Prudential California Realty
(209) 239-7979
www.CentralValleyHomes.com

STEPS TO SUCCESSFUL HOUSE HUNTING

House Hunting
Presented by Freddie Mac

 Once you know how much money you can borrow and have an estimate of your closing costs, you’ll know the price range you can afford. You might already have your “dream home” in mind. Perhaps you want to settle down in a particular neighborhood, or maybe you just need more space for your growing family.

Even if you know exactly what you’re looking for, the house hunting process can be overwhelming. It takes time.

The First Step – A Reality Check

It’s fun to look at houses. And this part of the process is very exciting, but don’t let your excitement rule the house-hunting process.

• Stick within your budget – don’t look at homes above what you can afford – even if it’s “just a little” more.
• Don’t let your heart rule over your head. You may fall in love with a property, but if it is beyond your means, it is not the right house for you.
• Be flexible. Don’t be disappointed if the houses in your price range differ from your dream. Buy the home you can afford rather than the home that “has it all.”
• Compare what you’d like to have with what you really need.

Some good house-hunting tips

• Take pictures inside and outside the home.
• Bring a spouse, family member, or friend.
• Make sure the house fits into your budget.
• Ask about utility and maintenance costs.
• Think of commuting time and costs.
• Consider your monthly budget – can you afford the renovations and maintenance that you’ll need to do?
• Don’t make a “spur-of-the-moment” decision.

Additional tips to make the house-hunting process easier

• Concentrate on a few neighborhoods. Decide what’s most important to you about the neighborhood you want. This can greatly narrow down your search.
• Find a real estate agent. They’ll have many more listings than you can find on your own.
• Compare homes. Make sure you know what you would get and what you would miss in each house before you make a decision.
  

Thanks,
CAROL PERDEW
Prudential California Realty
wwwCarolPerdew.com
(209) 239-7979

TIPS FOR PREVENTING FORECLOSURE

 This informative article gives suggestions for those borrowers who are having payment    
 problems. This includes some great information and Web sites directed entirely to helping
 prevent needless foreclosures.  You can know your options to determine the best possible 

outcome.  This provides some useful resources that are available.

What Should Borrowers Do When They Need Help?

by

Jack M. Guttentag
Featured on Yahoo Finance

An uncomfortably large proportion of my mail these days is from borrowers with serious payment problems. In most cases, I can’t help them for the reasons discussed below. With a few common cases, I try.

In one typical case, the borrower has two mortgages which add to an amount well in excess of the value of the property, and can no longer afford both payments. If the same lender holds both mortgages, and if the borrower can afford a reduced payment, his objective should be to persuade the mortgage lender to modify the notes to lower the payments.

The burden of proof is on the borrower. He has to document that he will be forced to default on the existing mortgages but could afford the payment on a new mortgage that would cost the lender less than foreclosure.

A Greater Challenge

If the second mortgage is held by a different lender, the challenge is greater.
The first mortgage lender is unlikely to modify the note so long as the second mortgage lender remains in a position to foreclose.

I suggest that borrowers in this situation approach the second mortgage lender first, with the objective of inducing that lender to get out of the way. The borrower can offer the second mortgage lender an unsecured promissory note for a portion of what is owed on the second mortgage. Since the second mortgage loan has little or no value except as a nuisance, any reasonable offer is likely to be accepted.

The situation described above is only one of many in which troubled borrowers may find themselves. Rarely do they communicate all the information that I would need to find the best possible outcome. Not all have second mortgages, but some have large amounts of non-mortgage debt to complicate the process. While many have negative equity in their properties, some have positive equity. In some cases a loss of income appears temporary, in other cases permanent; in some cases borrowers plan to dispose of the property, in other cases they want to hang on if possible.

A Best Possible Outcome

In principle, there is a “best possible outcome” for every individual situation, but only rarely do borrowers give me all the information I would need to find it, even if I had the time. Few borrowers know what their options might be, and fewer still understand the information they must provide before a best option can be identified. But some useful resources are available.

I have an article on my Web site called “Mortgage Payment Problems: What If You Can’t Pay?” It covers a wide range of possible situations in which borrowers may find themselves, and suggests the remedies that appear most relevant to each situation.

Recently, PMI Mortgage Insurance Company and Genworth Mortgage Insurance Company have developed Web sites directed entirely to helping prevent needless foreclosures. They cover much of the same ground as I do, but they do it better by breaking the problems down into bite-size pieces. Further, they include a number of videos that many people will find easier to follow than written expositions.

Warning: These sites are not easy to find through the main sites of the two companies. For the PMI site, go here. For Genworth, go here. Click on the menu item “Education and Training”.  

These sites are for those who are prepared to invest the time needed to figure out what their options are; they will not hand-tailor a solution for them, but they will provide useful guidance nonetheless.

At a second site, Genworth takes a step toward providing hand-tailored solutions. They provide forms which, when filled out by borrowers, provide the raw materials from which hand-tailored solutions are derived. However, there is no automated assistant to generate solutions; instead the information is referred to a Genworth counselor who will do it manually. Unfortunately (but understandably), the counseling service is available only to borrowers whose lenders have mortgage insurance with Genworth.

That does not mean that this facility is useless for other borrowers in trouble. At some point, every borrower in trouble who expects help must pull together all the information about their financial situation that is relevant to a best possible outcome. If the intention is to go directly to the lender, providing this information at the outset will go a long way toward placing him at the top of the applicant pile rather than at the bottom.

I have been searching for a program that will automate the last step — that is, after the borrower enters all relevant information, it will produce a best possible outcome, for that borrower. While such programs exist, they have been developed for license to major players and I have not yet been able to shake one free for direct use by borrowers. But stay tuned.

 

 SEARCH FOR BANK OWNED HOMES AT www.CentralValleyHomes.com

Carol Perdew
Prudential California Realty
(209) 239-7979
www.CentralValleyHomes.com

TIPS TO HELP PREVENT FORECLOSURE

Avoiding Foreclosure
Presented by Freddie Mac

The last thing any homeowner wants to think about is losing the family home. No one expects to lose their house to foreclosure, but by understanding the foreclosure process and what may lead up to it, you can be in a better position to recognize and address potential problems that may impact your ability to make every mortgage payment on time.

What is foreclosure?

In the contract you signed when your mortgage lender loaned you money to buy your house, you agreed that if you can’t repay the loan, the lender can foreclose to take ownership of the house.

If you do not pay your monthly mortgage payment, you are technically in default on your mortgage. State laws vary, but generally, a loan that is as little as 90 days delinquent can be considered in foreclosure.

Your lender may send you a notice indicating that they are starting foreclosure proceedings, but don’t wait; take steps to prevent a foreclosure as soon as you realize you are having trouble paying the mortgage!

• Learn to recognize the warning signs of foreclosure.
• Know what early steps you can take to avoid foreclosure.
• If you are in the midst of a foreclosure, know the dos and don’ts.
• Know where to get help in dealing with issues that could lead to foreclosure.

Have a Plan B.

Don’t wait until you’re in a financial predicament before assessing your options. The time to develop a backup plan is not when things have gotten so bad that you are facing foreclosure, but when things are going well and you can prepare for the unexpected “what if’s” that happen in life.

Quick Knowledge Check

Take our Avoiding Foreclosure Knowledge Check to find out how much you know about protecting your home and avoiding foreclosure.

What to do in special circumstances…

If you are a victim of a natural disaster.
If your property has been damaged or destroyed by a tropical storm, hurricane, tornado, flood, or other disaster, talk to your lender immediately. They often have special disaster relief options to help you.

Check our Protection section for more information on help after a natural disaster.

If you are a service member on or recently released from active duty.
There are special financial relief options in place for service members through the Service Members Civil Relief Act (SCRA). Talk to your lender about them.

If you are a veteran.
The Department of Veterans Affairs has produced a streaming video to provide information to
vets facing foreclosure.

To View Foreclosed Homes got to www.CentralValleyHomes.com

Carol Perdew
(209) 239-7979
www.CentralValleyHomes.com

Selecting the Right Home to Buy

Finding and Choosing the Right Home

Based on criteria that you and your REALTOR® establish together, your Associate will help you find the perfect home. There are many factors to consider in selecting a property, including location, bedroom and bath count, schools and amenities.

Your Associate will apply their extensive community knowledge and professional resources to research available properties, and show you the homes that best meet your needs. If you find a property that interests you through the Internet or your own research, let your Associate know so that a showing can be arranged.

As you view different properties, your criteria may change. Open and direct communication with your Associate is a key element of a successful property search.

 Search for Bank Owned Homes at www.CentralValleyHomes.com

Carol Perdew
(209) 239-7979
www.CarolPerdew.com                                                                                          

 

HOW TO PREVENT HOME FORECLOSURE

                            Freddie Mac Presents

                  Early Steps to Prevent Foreclosure

You already know a Plan B is important, but what should it include? The first steps to take in creating your plan are to:

·    Save money.
Put away some money each month to have an emergency fund in case something unexpected happens, such as losing your job. You should have several months of housing costs saved to protect you from unexpected financial problems.

·         Reduce expenses.
Think about where you can save money; for instance, temporarily canceling cable or your gym membership. By paring down to the bare necessities, you may be able to save a significant amount of money. And even if it doesn’t seem like enough of a savings to make a big difference, remember – every little bit helps.

Use our budget worksheet [PDF 73K] to help think about which changes you can make if you find yourself facing financial difficulties.

If you’ve put your Plan B into action and still find yourself having trouble paying the mortgage, you should:

·         Call your lender.
This is the single most important thing you can do. Lenders want borrowers, not properties – they would prefer to see you keep your home. Most will work with you while you get back on your feet.

·         Be honest with your lender.
Different situations require different solutions. It will matter to your lender to know if your financial problems are temporary, for example, due to an injury that puts you out of work for a few months, or are more long term, such as a cut in pay or a layoff.

·         Know what you owe.
Have a clear picture of what your debts are and make your mortgage the priority if you have to make choices. Debt collectors can be very aggressive, but if you can’t pay all your debts, make sure your home is protected from foreclosure by paying your mortgage.

·         Talk to a housing counselor.
A non-profit housing counseling agency may be able to help you restructure your bills so that you have an easier time paying them. Additionally, they can help you create a budget that suits your specific needs.

·         Contact a housing non-profit.
A housing non-profit can give you valuable advice. The HOPE National helpline, 888-995-HOPE, is dedicated to helping homeowners facing foreclosure 24 hours every day. Spanish – speaking counselors are available.

Making the call…

When you call your lender, be sure to have your account information handy and be ready to give a summary of the financial problems you are having. You should also have recent income statements and your household budget with you.
Be prepared for more than one conversation. Your lender may require that you complete a “loan work-out” package – you may not be eligible for help without it, so complete it as soon as you receive it.

Questions to ask…

• How much time is the lender willing to give you to complete a work-out?
• What are your obligations under the work-out package?
• What are the specifics? Be sure to ask what is due and when.
• Will a foreclosure sale of your property be put on hold while your lender looks at the possibility of a work-out package?

Visit the Mortgage Bankers Association’s Foreclosure Prevention Resource Center for advice on calling your lender for assistance.

Finding a credit counselor
You can find a credit counseling agency in your local phone book or by contacting the U.S. Department of Housing and Urban Development (HUD) at (800) 569-4287 on weekdays between 9:00 a.m. and 5:00 p.m. Eastern time. You can find a list of HUD-approved agencies on their Web site.

Know what questions to ask to make sure you find a reputable credit counselor.

Getting debt advice
Talk to a housing counselor at the HOPE hotline (888-995-HOPE) to understand your financial situation and what steps you can take to improve it.

Search for Bank Owned Homes at www.CentralValleyHomes.com

 

Carol Perdew
(209) 239-7979
www.CarolPerdew.com