California Housing Finance Agency Has Formulated A Special Program For Counties That Are Badly It By The Foreclosures

Posted on September 18th, 2008 by saman

Foreclosure has hit the communities extremely bad, it’s been estimated that the foreclosure rates are going to more than double since the last year. California has been one of the worst hit states in the country where people have fallen back on their mortgage payments. In fact there is some reason to cheer for those that are first time buyers of homes. California Housing Finance Agency also known as CalHFA has formulated a program that will help first time buyers to purchase the foreclosed properties in the neighborhoods that have been the worst hit.

$200 million program intended to bring cheer to first time buyers

This is $200 million program in which those that are first time purchasers are eligible to get fixed rate loans that are far below the market rates in the ZIP codes that have seen the highest number of foreclosures in the country. This program has been launched in Alameda County, California. Many lenders have agreed to fund the property purchase for the first time buyers. In fact they have offered to give loans at 12% below the official market rate. This program known as Community Stabilization Home Loan Program is been funded by tax exempt bonds as announced by Gov. Schwarzenegger. The program has started since July 21st.

These are the counties where the $200 million program is being offered. It may be offered in all neighborhoods or some designated areas. The California counties are

Contra Costa
Los Angeles
Merced
Monterey
Riverside
Sacramento
San Benito
San Bernardino
San Joaquin
Stanislaus

Various conditions apply for the purchase of the foreclosed homes by the first time buyers.

According to the estimates that have been projected by California Housing Finance Agency, this program could well make 800-1000 first timers finance their homes. The conditions for first time buyers are available at www.calhfa.ca.gov . The homes are required to fall under the sale price limits and buyers need to meet the income requirements in order to get their loans financed from the lenders. In the Alameda County families of three of even larger families that earn $120,540 can still be eligible under this program. The sale price limit for the Alameda County is $729,750.

This program is intended to benefit the first time buyers who can stay in their own homes, instead of selling out to the investors. It will also provide boost to the housing industry as many of the foreclosed houses would be sold. The lenders would also benefit as they can sell the houses. By starting this program, the government intends to provide benefits to the entire community.

On its website California Housing Finance Agency has listed all the foreclosed properties that are available to the first time buyers as well as the conditions under which the first time buyers are eligible for the loans that are provided.