A first time home buyer is a purchaser who has not owned a home within the past 3 years.
CalHFA offers First Time Home Buyer Programs that are classified as FHA or Conventional. They are two different programs.
I have not updated these figures, but will of course, if you are interested in their programs.
Both have income limits for the borrower. In California in 2008, the maximum income for a family of 3 or more people was just over $93,000 a year – gross income. Of course this figure changes all the time, so please contact me for the most recent figure for your location.
For the FHA form of the CalHFA program, the required down payment is 3.5% of the purchase price. The 3.5% can come in the form of cash from the borrower, a gift from a relative, or a second Deed of Trust for 3.5%. Minimum credit score is 620.
For the Conventional CalHFA loan program, the first loan amount would be 95% with a second Deed of Trust of 3%, making a total financed amount of 97%.
If you live in an area where the property values are declining, the total loan available may be reduced by 5%. The loan term can be 35 or 40 years. As the term gets longer, the payments go down.
Minimum credit score is 680.
First house is another first time home buyer program. This is a form of FHA lending as well.
Maximum household income is $74,750 (5/08). Maximum loan amount can be 103%, which pays for the down payment of 3.5% for FHA, and 3% of the closing costs. 3.5% of the financing can be a gift, or grant or 2nd. Deed of Trust.
Please contact me for specific information about your home financing needs.