CalHFA

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Futura Financial Company
CalHFA
Programs
By Anne McDermott FHA Loan Agent Phone
951-734-8300 Anne_at_RiversideFHALoans.com
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June 14, 2007
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Current rates at www.calhfa.ca.gov
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Interest Rate Schedule Regions/Counties
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CalHFA 35 Year (Interest Only PLUS)
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35 Year (Interest Only PLUS)
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CalHFA30 Year Fixed Mortgage

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30 Year Fixed Mortgage
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CalHFA30 Year FixedGovernment
Insured/Guaranteed Mortgage
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30 Year Fixed - Government Insured/Guaranteed
Mortgage
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CalHFAExtra Credit Teacher Program
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Extra Credit Teacher Program
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Extra Credit Teacher Program






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Extra Credit Teacher Program
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NOTES

• One Months reserves are required if the DTI is
  45 or less two months reserves are required if
  the DTI is over 45
• A minimum of three years since Chapter 7 or 13
  Bankruptcy discharge date and/or foreclosure and
  evidence of re-established credit is required.
• If an account balance is less than 250, or the
  total of all such accounts is 1,000 or less,
  CalHFA does not require that such accounts be
  paid off at or prior to closing. Higher balances
  will need to be paid off at or prior to closing.

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CalHFAConventional Mortgage Insured Loans
HomeOpeners is offered as part of primary
mortgage insurance at no extra cost to the
borrower or lender.
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CalHFARecapture Tax

• CalHFA 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 CalHFA-financed home within 9
  years.

For most people, the financial benefits of
homeownership- deductions for mortgage, interest,
and taxes as well as the MRB programs lower
interest rates and Downpayment assistance far
outweigh the risk of recapture.
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Questions Answers about Recapture Tax
For details on how to calculate recapture tax,
use IRS form 8828 and its instructions, located
on the IRS web site
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Affordable Housing Partnership Program

• CalHFA must approve all subordinate financing to
  be used
• With CalHFA First Mortgage.
• Subordinate documents must be submitted prior to
  approval package
• Copies of all Notes
• Deeds of Trust
• Loan Agreements or Resale Control Agreements
• Approved List is updated Monthly

Web address www.calhfa.ca.gov Look for AHPP
Partners (listed Alphabetically)
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Allowable Fees on CalHFA Loans

• 1.500 origination fee (broker keeps)
• Processing Fee 350 (Broker Keeps)
• Document Fee 200 (Guild Keeps)
• When Utilizing silent seconds Guild will keep
  250 for each program 3rd Party actual fees

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CalHFA Income Calculations(Income documentation
can NOT be more than 60 days old at the time the
investor reviews it)

• Family Income means anyone that lives in the
  home and is going to be on the title and on note.
• Hourly borrower works 40 hours per week - no
  overtime/bonus income use hourly pay x 40 x 52
  annual income / 12 MONTHLY INCOME
• BI-Weekly Use Salary reflected on the pay stub
  x 26/12 annual income / 12 MONTHLY INCOME
• BI-Monthly Use salary reflected on the pay stub
  x 24annual income / 12 MONTHLY INCOME
• Variable Income overtime/commission/ bonus (OT
  and bonus-employer to state will continue).
  Income will be averaged previous year and ytd
  earnings (up to but not exceed 24 months) If
  1040s reflect any unreimbursed business expenses
  we will deduct those out of the income. (if
  using FHA or VA with CalHFA must follow their
  guidelines and average over past 2 years)
• Self Employed Average over past 2 years - add
  back in depreciation. (Please note that a loss
  from schedule C or rental properties cannot
  offset income generated from other sources)
• Nontaxable Income can be grossed up to 25
• For CalHFA Income Limitations When income is
  being determined if borrowers have unreimbursed
  business expenses they will not deduct this out.
  It could put them over the income limits.
• Self Employed Borrowers will use last years
  income and ytd (PL) and average over of months
  reviewed. Overtime and bonus etc - last year and
  ytd earnings.

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IMPORTANT THINGS TO REMEMBER WHEN DOING CalHFA
LOANS

• List all subordinate Financing on Line J of the
  1003. (Itemize, do not lump them)
• Get Seller affidavit signed A.S.A.P. and send
  original to Guild. (It must be in file for CalHFA
  to fund the loan a copy can be used for loan
  approval)
• CalHFA requires proof of citizenship (copy of
  birth certificate or passport)
• When ready to lock, complete the CalHFA
  registration form.
• Locks are good for 60 Days on Resale and 120 days
  on new construction
• To avoid any delays, make sure the 1008 and 1003
  is completely filled out.
• If we receive info by 10AM it will go in the
  system that Day. After 10am will be the next
  day.
• Guild will approve files generally in 24-48
  hours. When the CalHFA Loan submission check list
  is complete, we send it to CalHFA for their
  approval. They take 5-7 days with no exceptions.
  If we get approval before 12 noon, we will draw
  docs within 24 hours. Once docs are signed and
  there is nothing outstanding we will fund the
  loan within 24 hours.
• Seller contributes 3 for 90 LTV, 6 90 LTV.

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Important Websites for CalHFA ECTP

• www.calhfa.ca.gov
• The CalHFA web site will provide you
  information on programs, guidelines, free
  marketing material, forms, confirmation of
  targeted properties etc.
• http//www.treasurerer.ca.gov/cdlac/extracredit/ci
  tysort.asp .
• To verify if a borrowers employer is an
  eligible school under the ECTP program, go to
• At this page, click on the link California
  Department of Education API Ranking Search and
  select Country. Next, select API Base Report
  to search for the schools ranking.