CalHFA Announces New 30-Year Fixed Rate FHA-Insured Mortgage for First Time Home Buyers

The California Housing Finance Agency announced a new mortgage option for first time home buyers this past week, which the department hopes "will help open the door to first time home ownership for many California families", according to CalFHA executive director Steven Spears. The new mortgage, done in partnership with the Federal Housing Administration, is a 30-year, fixed interest rate FHA-insured loan, and features below-market interest rates as well as affordable down payments. According to the California Association of Realtors, that could mean a fixed rate of approximately 4%. Borrowers are also able to use the California Homebuyers Downpayment Assistance Program (CHDAP) with this loan option, which can provide up to 3% of the purchase price to qualified borrowers for closing cost or down payment assistance.

In order to qualify for the program, borrowers must meet several eligibility requirements, including meeting CalFHA's income limits, meeting the minimum credit score requirements with maximum debt to income ratios, and completing a HUD approved first time home buyer education program, among others. Income limits vary by county - for a family of four in Los Angeles County, income must be less than $111,020 per year.

You can find more information on the CalFHA loan program HERE.

Info on the California Homebuyers Downpayment Assistance Program can be found HERE.

Fabulous Loan Opportunities for California School Employees!!

State of California school employees have an EXCELLENT opportunity available to them for the financing of a new home, by taking advantage of the CalSTRS Home Loan Program, offered to members of the California State Teachers' Retirement System. Loans are available up to $834,000.00, depending on the particular loan program. In addition, through their "80/17" program, borrowers can obtain financing with as little as 3% down, and will have a first and second deed of trust securing the loans on the property. The first deed of trust would be for 80% of the value, and the second deed of trust would be for 17% of the value, with the additional 3% coming from the borrower. The beauty of this is, the payments on the second deed of trust are DEFERRED for five (5) years, with no payments required until after that time period.

So basically, you can purchase a home with 3% down, with monthly mortgage payments on the 80% first trust deed ONLY for the fist five years. Not a bad deal...

As a father of an 11 year old girl heading into the 6th grade in the Los Angeles Unified School District, I know how important and influential teachers are in shaping the minds of kids, and how hard they work with the limited resources they have. Hats off to all the teachers in this world!! Teachers generally don't get enough thanks, praise and credit for the wonderful and important job that they do, and let me say that I for one appreciate it very much!! Its great to know that there are programs like this to reward teachers and help them achieve their dream of owning a home...

If you would like more information about The CalSTRS Loan Program, let me know and I would be happy to provide it. You can also find more information on their website, which can be found HERE

If you would like my help in realizing your dream of owning your own home, I will gladly give you my personal undivided attention. Please email me at john.barry@coldwellbanker.com , or call me at 323-810-7976. It is my job is to help YOU...

Could Be the Opportunity of a Lifetime for First-Time Buyers!!!

For first-time buyers who are debating whether or not now is a good time to buy, recently enacted Federal legislation may now offer the needed incentive, providing up to a $7,500.00 tax credit for first-time home buyers, for homes purchased on or after April 9, 2008 and before July 1, 2009. Note that for purposes of the credit, "purchased" means that the actual CLOSING must occur by July 1st. Assuming a typical 45-day escrow, it is in any first-time home buyers best interest to act as quickly as possible, in order to have an ACCEPTED OFFER and be ready to go into escrow by mid-May at the latest, so as not to possibly lose out on this INCREDIBLE OPPORTUNITY!!

Currently it is established as a zero-interest loan, which must be repaid to the government over a 15-year period, but I understand that there are provisions in the current economic stimulus package to make this credit PERMANENT, and one that NEVER HAS TO BE PAID BACK! Now that's what I call a TRUE tax credit!!! We will follow this stimulus bill very closely.

Please see this site for more information regarding the credit: **

Federal Tax Credit

Feel free to call me at (323) 810-7976, or email me at: jb@jbknowsthevalley.com if you are interested in finding out any more information on available properties in the Eagle Rock/Glendale/San Fernando Valley areas, and if you would like my assistance in making an offer in order to take advantage of this great opportunity.

** For specific questions regarding the tax credit and how it would apply to your particular tax situation, I strongly recommend you consult with your tax advisor or accountant.