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California Housing Finance Agency (CalHFA) recently launched it’s new program called Cal 30 – Conventional for First Time Home Buyers in San Jose, the San Francisco Bay Area and the rest of the state. This conventional first mortgage features a fixed interest rate, fully amortized loan over a 30-year term. It has a maximum Loan-to-Value (LTV) of 95%. Below are some of the other highlights of the program:

Maximum Loan Amount -The loan amount is limited to the maximum Fannie Mae conforming loan limits. Currently, this is $417,000. Fannie Mae high balance loan limits are not available.

Property Eligibility -Sales price of the home cannot exceed CalHFA sales price limits established for the county in which the property is located. Be a single-family, one-unit residence, including approved condominium/PUDs.Manufactured housing is not permitted

Private Mortgage Insurance -Private Mortgage Insurance (MI) is required on all Cal30 Conventional loans with LTV greater than 80.00%.

What are the eligibility requirements for you to qualify for this loan?

  • Be a U.S. citizen, permanent resident alien or qualified alien
  • Be a first-time home buyer, except for qualified veterans pursuant to the Heroes Earnings Assistance and Relief Tax Act of 2008 or unless home is located in a federally designated Targeted Area
  • Occupy the property as your primary residence.
  • Borrower’s income cannot exceed the published Cal30 income limits established for the county in which the property is located
  • Loans in federally designated Targeted Areas must comply with the same income limits.
  • Borrower(s) may not own another residential property at time of closing
  • Meet credit, income and loan requirements of CalHFA, Fannie Mae, the lender and the mortgage insurer

If you would like to know more about this program, feel free to contact me.