CalHFA: Forgivable Down Payment Assistance

What is CalHFA and how are they an advocate for first time homebuyers? 

Califonia Housing Finance Agency was created in 1975 and was created to meet the housing needs of people with low to moderate income. CalHFA offers a number of programs their latest offering maybe just what your looking for. 

Have you heard the latest from CalHFA? Their new program offers a 10% forgivable loan, interest free for first time homebuyers. In the Greater Sacramento area this can equate up to $50,000 that a buyer would be able to capitalize on. (CalHFA)

Lets point out a couple Qualifying Factors:

Recipients must be "first time homeowners", not literally, just not on anyone's title within the last year. 

Income Restrictions and lower DTI to use this product is that the persons income must be 80% or less than the areas median income. Future homeowners using this product should expect stricter DTI (Debt to income) requirements compared to FHA guidelines. (JVM Blog)

Purchase Price restriction? Future home owners shouldn't expect to pay over $550,000.

Borrower beware? The 10% down payment is forgivable but the loan cannot be refinanced, so if rates happen to drop lower borrowers will not be able take advantage of the lower rate. Nor shall they expect to sell the home in the first five years. 

In my opinion this CalHFA opportunity will assist many First time homeowners and it can rightfully be considered as free money towards a home. Having First time homeowers remain in a community for five years, could have a positive impact on the communities themselves. Most likely impacting communities that are most affordable to First time homeowners. One thing forsure is that this will make the housing market more competitive helping a generation of first time homebuyers reach their goal. 

If your interested in acquiring a home anywhere in California please let me know. 

Thank you,

index.htm

Latest Economic Outlook; Rates rise

Are you looking to stay ahead of the economic changes ahead? In this blog I will cover key points taken away from the Federal Reserve. The Federal Open Market Committee increased rates by .50%. 

What does this mean and why is this important? Financing instruments such as credit cards, car loans and other loan products will cost more to carry. On top of the recent rate hikes, the Federal reserve is expected to hike rates even higher in the near future. My suggestion is to eliminate debt as soon as possible if you'd like to avoid "a leaky purse". (Richest Man in Babylon)

The Federal reserve reported that import and exports will likely lessen in the future. To my understanding this will only add to the supply chain slowing down. I wonder to what extent products like gas, vehicles and cost of materials will be affected? 

Why is this important? Lower supply can often lead to items costing more. Other economic news shows that jobs have increased towards 1.7 million. Wages are reported to be rising fast and the price consumer index (consumption) is up 5%. The good news is we are living in a time period where unemployment is near a 50 year low.

Thank you for checking out my latest blog post. Feel free to comment below and add value to the post. 

Love,