CHFA Loans "CHAFA" Mortgage Loan
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The CHFA, or "CHAFA" as it is sometimes known, is operated by the California Housing Finance Authority. It is designed to provide up to 100% of home loan financing to prospective eligible first-time homebuyers. Program available in California only.

Generally, the loan consists of a standard 97% FHA - CHFA fixed-rate 30-year mortgage and a 3% CHFA down payment assistance second mortgage, which is also called a "sleeping" or "silent" second. The second mortgage is offered for 30 years at 3% simple interest. All payments are deferred on this second mortgage until one of the following happens: the CHAFA first mortgage becomes due and payable; the first mortgage is paid in full or refinanced; or, the property is sold.

Learn more about CHFA loans by calling now: (858) 442-0767 Mon-Fri - 8:30am - 5:30pm or get pre-qualified now for CHFA loan.

The CHFA 100% Home Loan Program is available to all low-income homebuyers in all 58 counties in California. Moderate-income homebuyers are eligible only in the following counties:

In order to qualify for a CHFA loan, certain eligibility requirements must be met. They are:

• Have an annual household/family income that does not exceed income limits for the family size and county in which the home is located. 

• Property must be owner-occupied for the term of the loan or until sold.

• Meet credit, income and loan requirements of the CHFA lender and the mortgage insurer.

• Be a first-time homebuyer, which is defined as a person(s) who has not had an ownership interest in their primary residence during the previous three years. This requirement is waived if property is located in a Federally designated Target Area.

• Have sufficient funds available to meet the required down payment - 3-5% plus closing costs. Some restrictions apply to gift funds.

• Have the legal right to permanently reside in the United States.

CHFA loans are subject to a Federal recapture tax. Recapture is a Federal income tax that borrowers may have to pay if they sell or transfer their CHFA-financed home within 9 years.

If you feel that the CHFA loan is right for you, learn more about please give us a call
at 858-442-0767.