The California Housing Finance Agency is teaming up with the Federal Housing Administration to offer 30-year fixed-rate loans to low- and moderate-income first-time homebuyers at below-market rates.

With mortgage rates already at historic lows, eligible borrowers could lock a CalHFA-FHA loan at around 4 percent.

First-time homebuyers using the CalHFA-FHA program may also be able to make a downpayment of as little as 1 percent if they also qualify for CalHFA’s downpayment assistance program.

The loans are limited to $417,000, and borrowers must meet a number of eligibility requirements, including minimum credit score, debt-to-income ratio, and income limits that vary by county and family size.

The state’s budget crisis, along with turmoil in bond markets that fund CalHFA loans, forced the agency to suspend its 30-year fixed-rate mortgage loan and downpayment assistance programs in December 2008.

CalHFA restored its downpayment assistance program in May 2009, and announced a new 30-year fixed-rate mortgage the following month that was limited in scope because it did not rely on bond financing.

"With the disruption in the credit markets over the last two years, we have been limited in our ability to help finance home purchases," said Steven Spears, executive director of CalHFA, in a press release. "This new program offers California families another way to purchase their first home with reliable, fixed-rate financing."

CalHFA financing is available through approved lenders listed on the agency’s website.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription