Orange, CA (PRWEB) July 17, 2014
For over 40 years, the California Housing Finance Agency (CalHFA) has been financially self-sufficient rather than rely on taxpayer dollars. Up until the year 2012, CalHFA was using proceeds of untaxed housing revenue bonds to fund loans, which were subject to restrictions such as being tax free on the condition that borrowers were federally defined as persons who have not owned a home in the past three years. Now, the CalHFA is deploying the use of other options to obtain financing because of the slow movement of the bond market and a lack of first-time homebuyers who meet the federal definition’s criteria. With these efforts, CalHFA is actively seeking ways to remove current obstacles that prevent Californians from becoming homeowners. Broadview Mortgage is proud to be a designated CalHFA lender.
According to a press release by CalHFA, “California’s homeownership rate stands at about 54.5 percent as of the end of the first quarter of this year , according to U.S. Census estimates, a full 10 percentage points below the national homeownership rate. California’s rate dropped from more than 60 percent before the Great Recession”. As a result, CalHFA is lengthening its reach outside to non-first time homebuyers, a market saturated with many low to moderate income earners, and thus providing more Californians with the opportunity to take advantage of the benefits that CalHFA’s affordable financing options offer.
CalHFA’s programs allow the purchase of homes with fixed-rate mortgages and down payment assistance programs. Three of the unique CalHFA opportunities include:
-A first loan of 97% the home value combined with 2nd low or no interest loan to cover 3% for the down payment.
-Access to low or no interest down payment assistance programs, which payments are deferred until the homeowners sell, refinance, or pay off the mortgage.
-A grant of 4% the first mortgage amount to pay for energy efficient improvements to the home as well as federal tax credits that can reduce potential federal income tax liability.
Homeownership is strongly linked to building community in the neighborhood as residents have long-term investments in their homes. CalHFA states that homeownership also fosters “better educational achievement, civic participation, and healthier outcomes...[homeownership is the] cornerstone for our communities and economy”. On top of this, CalHFA programs all require homebuyer education for future homeowners. A past article entitled, “The U.S. Department of Housing and Urban Development (HUD) Sets Plans to Improve Entry to the Housing Market Nationwide in its ‘Blueprint for Access’” discusses the crucial importance that homebuyer education plays in homeownership and the economy as a whole.
Broadview Mortgage values the opportunity to educate consumers to understand which direction that their current or future mortgage is taking them in. If you have any questions about the information herein, please to reach out to the Author, Brittany Williams, at Brittany.williams(at)broadviewmortgage(dot)com. If you would like a quick pre-approval click here, and for assistance with down payment or buyer assistance, click here. Or give us a call at (855) 692-7623.
Since 1988, Broadview Mortgage has distinguished itself through honest business relationships with clients, loyalty to employees, and commitment to empowering and educating those communities. Broadview Mortgage is a mortgage banker and direct lender made up of loan officers with years of experience in the firm and sheer excellence in customer service. The firm works to explore several financial solutions from which it’s clients may choose. Business is initiated and conducted on a word-of-mouth basis. Broadview Mortgage is a delegated underwriter for the Federal Housing Administration (FHA), the Veterans Administration (VA), and the Federal National Mortgage Association (FNMA). Broadview is also approved to participate in several state, county and city programs for First Time Home Buyers.
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