Question:

What is the most popular FHA insured home mortgage loan program for first-time homebuyers in California

Answer:

Probably one of the most popular FHA insured mortgage programs for first-time homebuyers in California is the 30-Year Fixed Government Insured/Guaranteed Mortgage program offered by CalHFA (California Housing Finance Agency). This program is suitable for low to moderate income earning first-time homebuyers and features a 30-year term of the mortgage loan with a below market, fixed interest rate.

Requirements for the CalHFA FHA Guaranteed Mortgage Program

Both the borrower and the property must meet certain requirements to qualify for the 30-Year Fixed Government Insured/Guaranteed Mortgage loan.

  • Borrower eligibility
    • Borrowers who apply for this CalHFA program should be first-time homebuyers who are US citizens or permanent resident aliens or qualified aliens.
    • Their income should not exceed CalHFA's preset income limits (those limits vary for the different California counties so you should check what the exact income limit is for the county in which you are purchasing).
    • The property should be occupied as a primary residence.
    • Last but not least, the borrowers should meet all the credit, income and loan requirements of the FHA mortgage insurer, as well as the CalHFA lender.
  • Property eligibility
    • The property should be a single-family, one-unit residence, and should meet all the requirements of the FHA mortgage loan insurer/guarantor (including the specific eligibility requirements for condominiums and manufactured homes).
    • The property's sales price should not exceed the CalHFA's sales price limits (again, those limits vary for the different counties).

Eligible homebuyers purchasing their home in California may combine this mortgage program with the CalHFA Housing Assistance Program (CHAP) financing option which provides up to 3% down payment assistance.

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