Cal HFA Update

If you remember a few months ago, we had our first shot at the CalHFA (California Housing Finance Agency) California Dream For All Program.

** If you're not a first time buyer, you should share this to someone who you care about **

This opportunity won't last for long. This is an incredible opportunity for ALL first time home buyers (really any buyers).

Let's discuss the pros, cons and what to do next. I'll also share why SO MANY people missed out on the last round when they didn't have to.

First off, what is this program?

To explain it as simply as possible, the program will grant you down payment help in exchange for shared appreciation.

Example: Buyer puts 5% down toward the purchase of their new home. If they use this program, it will add 15% down payment, making a full 20% down payment for the home sale. The trade-off is that the money that was used toward the sale is due back when the property is refinanced or sold.

The shared equity part also means that the buyer will also have to pay back 15% (whatever percentage was used in the down payment help) of the appreciation on the home.

Here are the pros:

• Higher Down Payment = Lower Interest Rate
• Lower Loan Amount = Lower Payment
• 20% Down Payment = No Mortgage Insurance = Lower Payment
• Buyers can buy earlier than otherwise possible

Here are the cons:

• You have to act VERY quick (I'll explain more later)
• You will share your appreciation
• Very Limited availability

This is an incredible program for any home buyer. The reason most people dropped the ball the last time this was available, is that they didn't jump on the opportunity.

Last time there was more money available in grants than this time around. There is $200m available. Last time the money lasted 12 days. I expect this time it doesn't last a week.

Here is how you can prepare yourself (or someone you know who should take advantage):

• Start the loan approval process now
• Take all the steps to get approved for the CalHFA program
• Get out shopping for homes ASAP

The good news is that our team of local experts can help with every step of this. Here are some resources

Step One - Starting the loan approval process

Reach out to your lender, if you haven't connected with one already. If you need a referral, we recommend Nick Shea at Franklin Loan Center. Go through the entire approval process, Nick and his team will fully underwrite your file immediately.

Step Two - Get approved for the program

Your lender will direct you on exactly how to get approved for the program. Get it done ASAP.

Step Three - Get home shopping ASAP

If you don't already have a saved search on SoCalHomesForSale.com, head over there and start looking. You should know what your budget is after talking to a lender. Now you can search on your own, or you can contact us to help narrow your search.

Step Four - Buyer Strategy Session

Helping our clients take advantage of the market is what we do best. If you're serious about taking advantage of this program, we recommend going through a Strategy Session with your agent. If you aren't working with an Onyx Homes Agent (you should be), you need to book your strategy session with one of our local experts.

The best advice you can listen to, is to jump on this opportunity today. Even if you feel you may not be ready, it doesn't cost you anything to explore the option.

PS - Remember that you don't have a ton of time and a lot of people haven't heard about this yet. Do yourself a favor and contact us today.