Special Loans Help Low Income First Time Home Buyers Get Into a House

I can help buyers obtain loans with good rates but not even I can help everyone looking to buy a home. I am putting this information here because there are those special cases that need special help like the help provided by special loan programs geared toward low and moderate income first time home buyers as well as teachers looking to purchase a home.
There is a state loan program that has already helped moderate-income buyers get into homes.

The 35yr mortgage, has been around for about 7 month, it offers fixed interest rate for the life of the loan and what makes it even more enticing, it offers interest only payments for the first 5 years. When compared to a traditional 30yr mortgage, it could boost borrowers’ buying power by $50,000 to $100,000.

Not everyone qualifies for this loan: Borrowers must qrualify as first-time home buyers (if you have purchased a home years ago but not owned one for years, you could qualify, check their guidelines), qualify within CalHFA’s income and home price caps, which vary by region.

This loan program offers below the market interest rates (currently around 5.75%), which is very helpful in today’s market that has shown continuous rising of interest rates. With the absence of this loan program many home buyers were already looking to stretch their purchasing power by obtaining riskier loans: interest only loans, variable loans with a 1 to 10 yr fixed rate period. These riskier loans don’t help borrowers build any equity. Borrowers simply hope that they will earn equity on their homes by relying on the hot real estate market. Today, it is a different story because home prices have begun to flatten out this fall after roughly doubling in the past 4 years. There might not be a bubble bursting as many predict but as I explained before we should expect far less appreciation if any in the coming years, but once again let me reiterate that no one can really predict exactly what will happen. If there was a small dive in the real estate market, many homebuyers with riskier loans will be at risk.

The best way for anyone but specially first time home-buyers and working families to build wealth as well as a safe financial future for their family is to get a fixed-rate loan instead of the riskier variable loans and consistently pay down the principal to continue building more equity.

Other types of programs offered by CalHFA are:

Low Income (helps low income families buy a home)
Extra Credit Teacher Program (ECTP loan program geared to help teachers buy a home)
Self-Help Builder Assistance Program (SHBAP)

Remember all these programs have income and home price limitation by regions.

Visit this website for more information:

www.calhfa.ca.gov 800-789-2432

If you are interested in any of these programs give me a call 408-505-6980 & I will put you in contact with a specialist on these loans (Spanish speaking as well)

Other similar programs available are the Acorn Housing programs.

These programs offered have lower interest rates, lower down payments and more.

Visit www.acornhousing.org or call me for more information.

I hope this information will help you if not pass it along to some one that does need it.