Cal HFA experiences

[Anonymous]

We just got sent to CALHFA (loan approved through countrywide) for a 95% conventional loan at 6.75 with no points and the 5% down payment is actually a combo of a 2% and 3% silent second/third.  Basicly it is a zero down loan.  We meet all the guidelines for the programs and all that and the underwriting is basicly done, they just have to send it to CALHFA for verifiaction of income, etc.  Does Anyone have any past experience (recent in particular) in how long that takes or what the process entails. 

[ShanetheMortgageMan]

The process for CalHFA reviewing the figures takes about 5 business days now.  However you probably should've looked into an FHA loan instead/as well as the CalHFA conventional loan you are going for... as your mortgage insurance on the CalHFA loan is going to be higher than what it would be if you went with FHA, and your interest rate is also higher than it would've been with FHA = your payment is higher than it would've been with FHA.

CalHFA also has their own FHA program too, did Countrywide go over that option with you?

[Anonymous]

thanks for the response.  We looked into FHA, but we got down paymet asistance through CALHFA that was dependant upon using the CALHFA conventional as well as using only my wife on the loan to keep under income limits for the programs.

We are in the process of buying a nice pool house in temecula for 320 K with the seller contributing 20K in closing costs, repairs, and upgrades.

[ShanetheMortgageMan]

Which CalHFA grant/assistance programs are you going for?  CHAP & CHDAP?  If so, they can both be used in conjunction with CalHFA's FHA program.  HiCAP is the only one that you cannot use with FHA.

However if you do go with FHA, then even though you wouldn't be on the loan application, your monthly debt payments (which aren't your wife's) would still be included in the debt to income ratio.  Perhaps that is why FHA wasn't a good option for you - because the debt to income ratio would be too high.

At 95% LTV, you are paying .9% per year for mortgage insurance with CalHFA's conventional program, vs. .5% for mortgage insurance with CalHFA's FHA program.

Lastly, with 5% down, the seller can only contribute 3% towards your closing costs/repairs/upgrades ($9,600).  However they could always reduce the price or just throw in free upgrades, which is an indirect credit, and is allowable (with no dollar or % amount cap)... so is that were the remaining $10,400 is going to?

Message Edited by ShanetheMortgageMan on 08-29-2008 10:55 AM