California Down Payment Assistance

Ok, it’s come to the point where I can no longer brush this off as a coincidence.  The conversation that I am having over and over again goes something like this…..

“Hi Scott, I am in the process of buying a home and was qualified for a Teacher loan (Extra Credit Teacher Program or CalSTRS 80/17) and my loan officer just told me that the underwriting guidelines have changed and I no longer qualify for this program.

I was doing some research on the internet and ran across your blog.  Have there been any changes?  I can’t seem to find anything to back up what i’m being told by my loan officer.  Please help!”

This is not an actual conversation ver batim but I assure you it’s really, really close!

Here’s what the “other guys” don’t want to tell you - They don’t like to offer these loans because…ok, brace yourself…….drum roll please……..They don’t make a lot of money giving you one of these special loans.

Can you believe it?  I know you’re shocked that a loan officer or lender would actually ignore the best interest of their client just to make more money for themselves……Come on Scott, that doesn’t happen.

I know I sound a little irritated and even bordering on hostile as I write this and I guess it’s because I am.

I sincerely hope that you have run across this post because you didn’t take “no” for an answer.  I want you to know that although there are often changes in loan qualification guidelines, there have been relatively few changes in these programs.

The reason why there is little information out there about these programs is that lenders and loan officers are not eager to work for a reasonable wage and help a segment of our community that quite frankley does not get enough credit for the contributions you make to society.

Ok, I feel a little better now that I’ve gotten this off my chest.  I’ve put together a bunch of resources for you and we hold free web classes regularly to educate teachers, public employees and first time home buyers about these special programs.

Click Here for these valuable resources

There are links all over this site to contact us for more information or you can call my cell phone anytime.  I can be reached at 714-336-8286.  The office number is 866-667-6724 and anyone here will give you an honest answer and look out for your best interest.

September 23rd, 2008 - In a shocking move today CalHFA temporarily suspends  most of thier first time home buyer programs leaving only the 30 year fixed and the Extra Credit Teacher Program:

Effective immediately and until the financial markets stabilize, the following CalHFA first

mortgage products are temporarily unavailable:

• 35-Year Fixed Rate Mortgage - interest only PLUSSM

• 40-Year Fixed Rate Mortgage

• HomeChoice Program

• New BLOCK Forward Commitments will not be issued, including forward commitments

for the Self-Help Builder Assistance Program (SHBAP)

Additionally the following subordinate loan programs are also temporarily unavailable:

• High Cost Area Home Purchase Assistance Program (HiCAP)

• CalHFA Housing Assistance Program (CHAP)

Effective September 23, 2008, the interest rate on all 30-Year Fixed Mortgages will be 6.750%.

This situation is being monitored daily and these rates and loan products are under continual

review. When conditions warrant, programs will be reinstated, announced by Program Bulletin

and posted on CalHFA’s website.

The attached interest rates are applicable to all loan reservations received by the Agency after

12:01 a.m. on September 23, 2008.

We fully expect that this is an extremely temporary move by CalHFA until the Federal Bail out plan is figured out.  CalHFA was recently funded and has no shortage of funds to lend as the program has recently recieved it new funding in August of this year.

The anticipation of the federal bail out is sweeping and has the potential to change how all mortgages are written in the future.  It is a little scary that CalHFA seems that there is little confidence in the federal government to get this resolved quickly and in a way that protects would protect thier current menu of first time home buyer products and down payment assistance programs.

Stay tuned as we will continue to keep an eye on the progress of the fed bail out and keep you informed of this move by CalHFA as well as other specialty community programs.  For questions, call 1-866-667-6724 or join us for one of our informative Webinars as we discuss all of the latest news that is important for home buyers in this volatile market.