Homeownership Really Is for Everybody.

    Frequently asked questions on the CalHFA program. Fantastic program for first time home buyers. Need help with your down payment? Closing costs? Not a lot of money in the bank? Do you work for the school district? If you answer is yes to any of these questions you need to see this.

    What is CalHFA?

    CalHFA (an agency of the State of California) Is Providing Down-Payment Funding and Even
    Closing Costs Advances to Certain Qualified First-Time Buyers! And, as Low as 3% Down
    Payments Are Acceptable under The Right Program. Lower Credit Scores Will Be Considered.

    Do I have enough money to buy a new home?

    Depending on the purchase price of the home and program it’s quite possible to  qualify with zero to a few thousand dollars in reserves.

    What about loan amount? Prices are so high where we live.

    The loan amount can be as high as $765,000! (This higher loan may require a down-payment of
    5%, but again, can be advanced under this program).

    Closing Costs?  Down Payment? Do my reserves mentioned above include these?

    The California Housing Finance Authority (CalHFA) can provide funds to qualified first time
    buyers to cover the down payment on home purchases. CalHFA will even loan sufficient funds,
    under the right circumstances, to pay for loan closing costs. Closing costs are such things as
    title fees, escrow fees, recording fees, and other costs and expenses of obtaining a loan.

    The funds advanced for the down payments will go on the property as a second lien. However,
    the obligation does not accrue interest and does not require payments. The obligation is repaid
    when the home is either sold or refinanced. Even then, it is possible under certain
    circumstances to have the obligation subordinated to a new loan.

    The funds advanced for the closing costs will go on the property as the equivalent of a third
    position lien. These advances do accrue interest, but at a very low rate. And, no payments are
    required. Again, they are paid when the home is sold or refinanced.

    What about my credit score?

    Credit scores as “unpolished” as 640 will be considered, along with other qualifying
    factors. Two borrowers but only one has a score higher than 640? It’s still possible!

    The term “first time home buyer” keeps being used but what exactly does it mean?

    A “first-time buyer” can also be considered someone who has not owned a home for three or
    more years.

    Wow. This sounds great! How do I find out what the next step is?!

    We thought you’d never ask! 🙂 That’s where the experienced agents at The Realty Society find you that
    home you’ve always been dreaming of, and let the qualified lenders associated with our agents
    get you that loan. You’re a lot closer than you think.

    I’m ready! Let’s get started!

    The Realty Society, a Gilroy-based progressive real estate brokerage, is associated with superb
    lenders who have the experience and ability to help first-time buyers purchase their first home.

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