CalHFA FHA Loan Program - CALIFORNIA HOUSING FINANCE AGENCY - LAST REVISED: FEBRUARY 1, 2019 - CA.gov
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
CALIFORNIA HOUSING FINANCE AGENCY
CalHFA FHA
Loan Program
LAST REVISED: FEBRUARY 1, 2019CALHFA FHA LOAN PROGRAM
Table of Contents
I. Program Summary 1
II. Eligibility 1
a. Borrower Requirements
b. Eligible Homebuyers
c. Homebuyer Education
d. Owner Occupancy
e. Property Requirements
f. Lender Eligibility Requirements 2
g. Broker Eligibility Requirements 3
III. Underwriting & Compliance 3
a. Transaction type
b. Term
c. FHA’s Section of the Act
d. LTV and CLTV
e. Maximum Loan Amount
f. FHA High Balance Loan Limits
g. Maximum Sales Price Limits
h. Income & Sales Price Limits
i. Income Requirements
j. Maximum Program Income Limits
k. Qualifying Ratios 4
l. Minimum Credit Score
m. Automated Underwriting
n. Sales Concessions/Contributions
o. Miscellaneous Lakeview Loan Servicing Underwriting Guidelines
IV. Subordinate Financing 5
a. CalHFA Subordinate Financing
b. Borrowers affected by natural disasters in California 6
c. Non-CalHFA Subordinate
d. Other Programs and Assistance
V. CalHFA Loan Process (Submission, Approval & Purchase) 7
VI. Fees 7
VII. Reservations, Rate Locks & Extensions 8
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) iiCALHFA FHA LOAN PROGRAM
Table of Contents (cont.)
a. Reservations and Rate Locks 8
VIII. Basic Home Protection Coverage 9
a. Mandatory Home Warranty Insurance Coverage
IX. Pre-Closing Loan Submission 9
a. Loan Submission Process
b. Forms
X. Post-Closing Loan Delivery & Purchase 10
a. All CalHFA First Loans:
b. All CalHFA Subordinate Loan(s):
c. Forms 11
XI. Frequently Asked Questions 12
a. Sale Tools And Marketing Materials 16
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) iiiCALHFA FHA LOAN PROGRAM
Program Summary
The CalHFA FHA program is an FHA-insured loan featuring a CalHFA fixed inter-
est rate first mortgage. This loan is fully amortized for a thirty (30) year term and
can be combined with either the MyHome Assistance Program (MyHome) or School
Teacher and Employee Assistance Program (School Program).
The CalHFA FHA loan is not subject to Recapture Tax.
Eligibility
Borrower Requirements Owner Occupancy
Each borrower must • All borrowers must occupy the
property as their primary residence
• Be either a citizen or other National
within sixty (60) days of closing
of the United States, or a “Qualified
Alien” as defined at 8 U.S.C § • Non-occupant co-borrowers are not
1641 allowed
• Meet the credit, income and loan • Non-occupant co-signers are not
requirements detailed in this allowed
program handbook, as well as
CalHFA’s Lender Manual, Fannie Property Requirements
Mae, the CalHFA-approved lender,
• Sales price of the home cannot
the mortgage insurer and CalHFA’s
exceed CalHFA’s sales price limits
master servicer’s requirements
established for the county in which
the property is located
Eligible Homebuyers
This program is available for both first-time • Property must be a single-family,
and non-first-time homebuyers. one-unit residence, including FHA-
approved condominium/PUDs. It
Homebuyer Education is the responsibility of the lender
and not the master servicer to meet
Homebuyer Education counseling is
these guidelines.
required for one occupying first-time
homebuyer. Homebuyer Education is not • Manufactured homes are permitted
required for non-first-time homebuyer(s). with the following parameters:
• Online Homebuyer Education ›› Minimum credit score: 660
through eHome™
›› Maximum LTV: 96.50%
• Face-to-Face Homebuyer Education
through NeighborWorks America or ›› Maximum CLTV: 105.00%
through one of the HUD approved
›› Singlewide manufactured homes
Housing Counseling Agencies
are not eligible
›› Not available on Limited 203(k)
(continued on next page)
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 1CALHFA FHA LOAN PROGRAM
Eligibility (cont.)
›› Manual Underwriting is not per- • Refer to the Lakeview program
mitted on manufactured homes matrix for their Disaster Policy
›› All manufactured homes must ›› See Lakeview Correspondent
meet FHA 4000.1, Master Lending website for details
Servicer and CalHFA loan pro-
• Escrow Holdbacks will be allowed
gram requirements
for minor outstanding repairs not
Additional Property Guidelines completed prior to loan closing
• Accessory Dwelling Units (ADU), ›› The Property must be habitable
Guest houses, “granny” units, and and safe for occupancy at the
“in-law” quarters are eligible time of loan closing
›› Must be zoned for Single Family ›› Lenders and/or closing agent will
Occupancy be responsible for managing and
disbursing holdbacks
›› Cannot be zoned for 2-4 units
›› Lender must deliver loans that
›› Must meet investor guide-
were originated in accordance
lines and city/county zoning
with FHA and Fannie Mae
ordinances
guidelines
• Per investor guidelines – If rental
»» Please see Lakeview Loan
income from the ADU is used for
Servicing website for required
credit qualifying, CalHFA will also
documents
use the gross rental income for the
compliance income calculation Property Flipping
• Leasehold Estates • Follow FHA first-mortgage under-
writing guidelines
›› Must follow FHA guidelines
CalHFA requires a copy of all appraisals as
›› All Leasehold Estate documen-
tation must be submitted to required by FHA.
CalHFA’s Master Servicer with When multiple appraisals are required,
purchase package for review and CalHFA will base the subordinate loan
approval amount(s) on the lesser of the sales price
• Land Trusts and Co-ops are not or lowest appraised value.
permitted
Lender Eligibility Requirements
• Non-permitted additions/alterations
To be eligible for this program lenders
must follow FHA guidelines
must be approved by:
• Lot size cannot exceed five (5)
• CalHFA
acres maximum
• FHA
• Properties must meet the
requirements of FHA and the
California Health and Safety Code (continued on next page)
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 2CALHFA FHA LOAN PROGRAM
Eligibility (cont.)
• Lakeview Loan Servicing (LLS), Broker Eligibility Requirements
CalHFA’s master servicer. To
Mortgage brokers can find a list of
seek LLS approval contact the
Counterparty Risk Management participating CalHFA-approved wholesale
team at lenders on CalHFA’s mortgage broker
CRM@Lakeviewloanservicing.com webpage
Underwriting & Compliance
Transaction type All FHA High Balance Loan fees will be net
funded at the time of first mortgage pur-
Purchase transactions only
chase by the master servicer.
Term Maximum Sales Price Limits
Up to 30 years
The Sales Price of the home cannot ex-
ceed CalHFA Sales Price Limits for the
FHA’s Section of the Act
county in which the property is located.
CalHFA will accept the following FHA
Section of the Act mortgage types, per Income & Sales Price Limits
FHA guidelines:
The following reference materials disclose
• 203(b) Home Mortgage Insurance income and sales price limits by county:
• Limited 203(k) 1. CalHFA Income Limits
LTV and CLTV 2. Sales Price Limits
Loan-to-Value (LTV) to follow FHA first Income Requirements
mortgage underwriting guidelines Lenders are required to calculate income
Combined Loan-to-Value (CLTV) cannot to qualify borrower(s) for loan approval
exceed 105.00% using FHA guidelines. CalHFA will use
the lender’s credit qualifying income
Maximum Loan Amount to determine if the loan exceeds the
maximum program income limit. Income
The maximum loan amount (excluding not used by the lender for credit qualifying
UFMIP) cannot exceed FHA loan limits will not be used by CalHFA.
for the county in which the property is
located. MAXIMUM PROGRAM INCOME LIMITS
The income of all borrowers cannot
FHA High Balance Loan Limits
exceed the published CalHFA income
All loans with a base loan amount limits detailed in this program hand-
exceeding $484,350 will be subject to an book established for the county in
additional fee. See CalHFA rate sheet for which the property is located.
applicable fees. (continued on next page)
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 3CALHFA FHA LOAN PROGRAM
Underwriting & Compliance (cont.)
Qualifying Ratios Automated Underwriting
The maximum total Debt-to-Income (DTI) Automated Underwriting: All loans
ratio cannot exceed 45.00% for automated must be submitted through FHA Total
underwriting or 43.00% for manual under- Scorecard through either Fannie Mae
writing. A MCC may not be used for credit Desktop Underwriter (DU®) or Freddie Mac
qualifying purposes. Loan Product Advisor (LPA®). If findings
returned are refer/eligible, follow manual
Minimum Credit Score underwriting guidelines
• Credit Score 640 Other customized automated underwriting
›› Manually Underwritten loans: systems are not acceptable.
660 Manual Underwriting is allowed with the
›› Manufactured Housing: 660 following parameters:
• A borrower with no credit score may • Maximum DTI ratio: 43.00%
be eligible as long as an occupant
• Minimum Credit Score: 660
borrower(s)has a credit score that
meets the minimum representative • Must meet FHA requirements
credit score requirement and all
manual underwriting guidelines are • Not permitted on Manufactured
followed Homes
›› Non-traditional credit is not Sales Concessions/Contributions
accepted
Concessions/contributions as per FHA
• When all borrowers have a credit guidelines except for the following:
score, they must meet the minimum
representative credit score require- • Payment of condominium fees
ments. The middle score of the • Personal property
lowest-scoring borrower should be
used to determine eligibility • Down payment assistance
›› If a tri-merged credit report is • See Lakeview Correspondent
used, use the middle score Lending website for additional
requirements
›› If a merged credit report only
returns two scores, use the lower Miscellaneous Lakeview Loan Servicing
score Underwriting Guidelines
›› If a merged credit report only • Credit Underwriting is the
returns one score, that score responsibility of the originating
must be used lender
(continued on next page)
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 4CALHFA FHA LOAN PROGRAM
Underwriting & Compliance (cont.)
• Underwriters must consider the • Appraiser must meet all master
income, assets, liabilities and credit servicer guidelines, see Lakeview
histories of co-signers Correspondent Lending website for
details
• Underwriters should:
• 2-1 or 1-1 temporary buydowns are
›› Make sound credit decisions permitted as per FHA guidelines
›› Assure data integrity ›› Loan must be credit qualified at
›› Include all necessary documents Note rate
in support of the underwriting
In the case of conflicting guidelines, the
decision
lender must follow the more restrictive to
• Tax transcripts are required for all meet the credit, income limits, total debt-
years that income is used for credit to-income ratio and loan and property
qualifying requirements of CalHFA, FHA, the lender
or the master servicer.
• Non-arm’s length transactions must
be fully disclosed All loans are subject to audit by both
CalHFA and Lakeview Loan Servicing.
Subordinate Financing
CalHFA Subordinate Financing • School Teacher and Employee
Assistance Program (School
This program may be layered with the Program)
following down payment and/or closing
cost assistance options, for first-time ›› May be used for down payment
homebuyers only; unless the borrower assistance and/or closing cost
has been affected by a California natural ›› In the case of conflicting guide-
disaster as described below lines, the lender must follow the
more restrictive
• MyHome Assistance Program
›› Must be recorded in Second
›› May be used for closing cost
Lien Position
and/or down payment assistance
›› For full School Program under-
›› In the case of conflicting guide-
writing guidelines and details see
lines, the lender must follow the
the School Program Handbook
more restrictive
›› Must be recorded in Second MyHome and School Program may not be
Lien Position combined.
›› For full MyHome underwriting
guidelines and details see the
MyHome Program Handbook
(continued on next page)
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 5CALHFA FHA LOAN PROGRAM
Subordinate Financing (cont.)
Borrowers affected by natural Non-CalHFA Subordinate
disasters in California
This program may be layered with locality
To be eligible for CalHFA Financing: programs to be used for closing costs
and/or down payment assistance as per
• Previous property must be located
individual requirements.
in an area declared as a Major
Disaster and posted on the Federal • The locality subordinate loan must
Emergency Management Agency meet FHA underwriting guidelines
(FEMA)website
• The maximum CLTV must meet
• Previous property must have been CalHFA requirements
the borrower’s primary residence
• In the case of conflicting guidelines,
• Previous property must have been the lender must follow the more
destroyed or declared uninhabitable restrictive
with supporting documentation
supplied from either (i) the • Must be recorded in subordinate
insurance company or (ii) the local lien position to CalHFA Subordinate
government jurisdiction Financing
• Borrowers affected by a declared Other Programs and Assistance
Major Disaster are eligible to
purchase a new home using CalHFA This program may be layered with a
loan programs within three (3) years Mortgage Credit Certificate (MCC). The
of that Major Disaster’s declaration MCC credit may not be used for credit
date qualifying purposes.
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 6CALHFA FHA LOAN PROGRAM
CalHFA Loan Process (Submission, Approval & Purchase)
The lender must upload to CalHFA’s MAS loan(s). After closing, the lender will upload
a fully approved loan package per CalHFA’s a closed first mortgage purchase package
Loan Submission Checklist for program to CalHFA’s master servicer Lakeview Loan
policy, compliance review and desktop Servicing and any CalHFA subordinate loan
underwriting validation. (i.e. ZIP, MyHome or School Program) pur-
chase package(s) to CalHFA for purchase.
CalHFA will review loan files on a first-
come, first-served basis. CalHFA reviewers Lenders must submit applicable ZIP,
will notify lenders of each conditional loan MyHome or School Program purchase
approval, suspension and/or rejection via packages to CalHFA at the same time the
MAS. first mortgage is submitted to the master
servicer to ensure that the purchase of all
Suspended loan files will not be reviewed
loans meet the rate lock expiration.
until all suspense items are uploaded to
MAS. All loans must meet the rate lock expira-
tion date.
Upon receipt of the Notice of Commitment,
the lender is authorized to close the
Fees
Service Release Premium (SRP) Master Servicer Fees
• Lenders will earn a 1.00% Service • LLS funding fee is $250 per loan
Release Premium to release servic-
• Tax Service fee to LLS is $75 per
ing to Lakeview Loan Servicing
loan
(LLS) at time of purchase
• Life of Loan Flood Certificate fee to
• LLS will purchase loans directly
LLS is $10 per loan
from lender on a daily basis.
• Funding fees paid by the borrower
Lender Allowable Fees (Origination &
or seller must be disclosed and
Processing)
documented on the final Closing
• Customary lender origination fees Disclosure
not to exceed the greater of 3% of
• Other customary master servicer
the loan amount or $3,000
fees may apply
• Other customary third party fees
• LLS will not purchase High Cost
such as credit report fee, appraisal
Loans
fee, insurance fee or similar settle-
ment or financing cost • Lenders should refer to their legal/
compliance department on how to
• In all cases the lender must meet
disclose fees
federal and California lending laws
regarding fees and charges
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 7CALHFA FHA LOAN PROGRAM
Reservations, Rate Locks & Extensions
Interest rates are available on the CalHFA • Lenders may not lock a loan in
Interest Rate page. Interest rates are sub- MAS with an interest rate that
ject to change at any time without notice. is higher than the interest rate
reflected on the CalHFA Notice of
Reservations and Rate Locks Commitment.
• Reservations with a floating rate ›› If the current rate is higher than
will be accepted from 6:00 a.m. the rate on the CalHFA Notice of
to 11:59 p.m. Pacific Time, seven Commitment, please resubmit all
days a week updated loan documents at the
higher rate including Approved/
• Rate locks will only be accepted Eligible DU ® findings, lender-
between the hours of 8:00 a.m. to signed HUD 92900-LT, and final
3:00 p.m. Pacific Time, Monday underwriting approval for CalHFA
through Friday, excluding state-rec- re-approval
ognized holiday, and days that the
U.S. financial markets are closed Delivery Timeframes and Extensions:
for business. Only lenders with full
• Files should be received by the
MAS access may lock the interest
master servicer by the 45th day
rate
or earlier, to ensure time to clear
• Lenders will have the option to float conditions and purchase prior to
(90 days for existing/resale proper- rate lock expiration
ties or 120 days for new construc-
• CalHFA offers rate lock extensions
tion properties) or lock the interest
in 15 day increments up to a maxi-
rate for sixty (60) days for both
mum of 120 days from the original
existing/resale properties and new
expiration date
construction properties
• Under no circumstances will
• All CalHFA subordinate loan(s) will
CalHFA extend a rate lock period
receive the same reservation, lock
longer than 120 days for both exist-
and purchase periods as the CalHFA
ing or new construction properties
first mortgage
from the original expiration date
• Lender should factor in its
own processing/underwriting Please see the Rates & Reservation page
time frames, as well as CalHFA for full details and FAQs.
compliance review, and master
servicer review for purchase time
frames when locking interest rates
and submitting loan files
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 8CALHFA FHA LOAN PROGRAM
Basic Home Protection Coverage
Mandatory Home Warranty Insurance • Home Warranty to be paid through
Coverage close of escrow
• CalHFA requires that all first-time • Home Warranty must be disclosed
homebuyer(s) obtain a one-year on Final Closing Disclosure or
home warranty protection policy copy of insurance declaration page
required
›› Non-first-time homebuyers are
not required to obtain a home • Exception to Home Warranty:
warranty protection
›› If borrower is purchasing a new
• The insurance must cover the fol- construction property from a
lowing items at a minimum: builder and the builder is provid-
ing the home warranty
›› Water Heater(s)
›› Borrower is not a First Time
›› Air Conditioning Homebuyer
›› Heating
›› Oven/Stove/Range
Pre-Closing Loan Submission
Loan Submission Process Forms
A lender makes reservations through The following forms will be needed when
CalHFA’s Mortgage Access System (MAS). submitting a CalHFA FHA loan to CalHFA:
Refer to the Loan Submission Checklist for
• CalHFA Borrower Affidavit
minimum documentation requirements.
CalHFA FHA loan submission packages are
to be sent electronically through MAS.
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 9CALHFA FHA LOAN PROGRAM
Post-Closing Loan Delivery & Purchase
All CalHFA First Loans: • Loss Payee Clause:
• Use the master servicer Loan Lakeview Loan Servicing, LLC
Purchase Checklist located on the c/o LoanCare, LLC
Lakeview Correspondent Lending ISAOA/ATIMA
website to ensure you are submit- PO Box 202049
ting a complete and accurate Florence, SC 29502-2049
package.
• All loan deficiencies will be posted
• Notes are to be endorsed to on the client facing website which is
Lakeview Loan Servicing, LLC accessible 24 hours a day
• Deeds of Trust are to be assigned to • All loans must be program approved
Lakeview Loan Servicing, LLC and deficiency free before they can
be purchased
›› All loans must be registered with
Mortgage Electronic Registration All CalHFA Subordinate Loan(s):
Systems (MERS) at the time
of delivery to Lakeview Loan • All CalHFA subordinate loans must
Servicing, LLC, and MERS be funded, delivered and purchased
transfer of beneficial rights of by CalHFA concurrently with the
servicing rights must be initiated first mortgage
by the Lender, to Lakeview Loan • CalHFA subordinate loan purchase
Servicing, LLC within 24 hours packages are to be sent electroni-
of loan purchase cally through MAS
›› Register via MERS: ›› Use the Loan Purchase Checklist
»» Investor: 1010298 Lakeview to ensure you are submitting a
Loan Servicing complete and accurate package.
»» Servicer: 1010298 Lakeview • Subordinate loan documents are to
Loan Servicing be drawn in the Lender’s name
»» Subservicer: 1000723 ›› Note to be endorsed to CalHFA
LoanCare LLC ›› MERS Deed of Trust must be
• CalHFA FHA closed loan files are assigned to CalHFA
to be sent electronically to the »» Loans are to be transferred
master servicer via the Lakeview via Mortgage Electronic
Correspondent Lending website Registration Systems (MERS)
within ten (10) business days
»» Register via MERS:
• Logon link will be in the top right
section of the website • Investor: 1000645
California Housing Finance
Agency
(continued on next page)
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 10CALHFA FHA LOAN PROGRAM
Post-Closing Loan Delivery & Purchase (cont.)
• Servicer: 1000645 Forms
California Housing Finance
Agency Lender must use the following forms:
• Loss Payee Clause: 1. Most current version of standard
FHA Fixed Rate Note
California Housing Finance Agency
Its successor and/or assigns 2. Most current version of standard
Single Family Servicing – MS 980 FHA Deed of Trust
500 Capitol Mall, Suite 400
Sacramento, CA 95814 3. Lender must also use other
applicable documents (e.g., PUD
Rider, etc.)
4. Subordinate Mortgage Submission
Voucher Part II
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 11CALHFA FHA LOAN PROGRAM
Frequently Asked Questions
What is the CalPLUS FHA Loan Does CalHFA FHA allow additional
Program? subordinate financing?
The CalHFA FHA loan program is a Yes. The MyHome Assistance Program
fully amortized 30-year fixed interest (MyHome) or School Teacher and
rate FHA-insured first mortgage. Employee Assistance Program (School
Program) and FHA-approved subor-
Who can originate CalHFA FHA? dinate loan programs may be layered
Lender Eligibility Requirements with CalHFA FHA. In the case of con-
flicting guidelines, the more restrictive
To be eligible to participate in this will apply.
program, lenders must be approved by:
What areas of California are eligible for
• CalHFA
CalHFA FHA?
• FHA CalHFA FHA is a state-wide program.
Properties located anywhere within the
• Lakeview Loan Servicing (LLS),
State of California may be eligible for
CalHFA’s master servicer
the program.
• To see LLS approval, contact the
Counterparty Risk Management Are there sales price limits on
team at CalHFA FHA?
CRM@lakeviewloanservicing.com Yes. The sales price of the property
must be within CalHFA’s published
My borrower(s) owns a rental property; sales price limits. These sales price
can they keep the property and still be limits can be found on the CalHFA
eligible for the CalHFA FHA? web site.
Yes, if they meet CalHFA’s first-time
homebuyer definition. What is the maximum loan amount for
CalHFA FHA?
My borrower is not a first-time The maximum base loan amount
homebuyer. How many years’ tax returns (excluding Upfront Mortgage Insurance
do I need to submit for the CalHFA FHA? Premium) cannot exceed FHA loan lim-
One (1) year tax return is required for a its for the county in which the property
non-first-time homebuyer. is located.
Do I need to make a reservation in the All loans with a base loan amount
Mortgage Access System (MAS) before exceeding $484,350 will be subject
submitting a loan file to CalHFA? to an additional fee. See CalHFA rate
Yes. The CalHFA-approved lender must sheet for applicable fees.
make a reservation in MAS prior to loan
Are condominiums eligible for
submission.
CalHFA FHA?
Yes. CalHFA will allow approved condo-
miniums that meet FHA Condominium
Project requirements.
(continued on next page)
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 12CALHFA FHA LOAN PROGRAM
FAQ’s (cont.)
Is a manufactured home eligible for • If a tri-merged credit report is used,
CalHFA FHA? use the middle score
Yes, manufactured homes are permit- • If a merged credit report only
ted with the following parameters: returns two scores, use the lower
• Minimum credit score: 660 score
• Maximum LTV: 96.50% • If a merged credit report only
returns one score, that score must
• Maximum CLTV: 105.00% be used
• Singlewide manufactured homes are My borrower only has one credit score, is
not eligible that okay for CalHFA FHA?
• Manual Underwriting is not permit- Yes, one credit score is acceptable with
ted on manufactured homes DU Approve/Eligible findings.
• All manufactured homes must meet Do all of my borrowers need to meet the
FHA 4000.1, Master Servicer and minimum credit score requirement for
CalHFA loan program requirements CalHFA FHA?
Yes. A minimum representative credit
What automated underwriting engines do
score is required for all borrowers that
you allow for the CalHFA FHA loan?
have a credit score. A borrower with
CalHFA will accept the most recent no credit score may be eligible as long
version of Fannie Mae’s Desktop as another occupant borrower(s) has a
Underwriter ® (DU ®) or Freddie Mac’s credit score that meets the minimum
Loan Product Advisor (LPA ®) with the representative credit score and all
FHA Scorecard option. manual underwriting guidelines are
followed.
What is the minimum credit score
requirement for CalHFA FHA? Can I use Non-Traditional credit for the
CalHFA’s minimum credit score is CalHFA FHA loan?
640 except under the following No. Non-traditional credit is not eligible
circumstances: for the CalHFA FHA.
• Manually Underwritten loans: 660
Is manual underwriting permitted for the
• Manufactured Housing: 660 CalHFA FHA loan?
Yes, manual underwriting is allowed
Does CalHFA use the lowest credit score with the following parameters:
to determine the minimum representative
credit score of 660 for the CalHFA • Maximum DTI ratio: 43.00%
FHA loan?
• Minimum Credit Score: 660
No. The middle score of the lowest
scoring borrower should be used to • Manufactured Homes are not
determine eligibility. permitted
(continued on next page)
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 13CALHFA FHA LOAN PROGRAM
FAQ’s (cont.)
What is the maximum age of credit Does CalHFA FHA program require the
documents for the CalHFA FHA loan? borrower to be a first-time homebuyer?
CalHFA will follow FHA guidelines for No. This program is open to both first-
the age of the credit documents. time and non-first-time homebuyers.
What is the maximum LTV/CLTV for Does the Federal Recapture Tax apply to
CalHFA FHA? CalHFA FHA?
The maximum LTV is per FHA guide- No. The Federal Recapture Tax does
lines. The maximum CLTV is 105%. not apply to this program.
Does the borrower have to have a cash Is homebuyer education required for
down payment for CalHFA FHA? CalHFA FHA?
No, CalHFA does not require a mini- Homebuyer Education counseling is
mum borrower investment from the required for one occupying first-time
borrower. Please follow FHA guidelines. homebuyer. Homebuyer Education
is not required for non-first-time
What fees and related charges are homebuyer(s).
allowed for the CalHFA FHA loan?
• Online Homebuyer Education
CalHFA allows:
through eHome™
• Customary origination fees not to
• Face-to-Face Homebuyer Education
exceed the greater of 3% of the
through NeighborWorks America or
loan amount or $3,000
through one of the HUD approved
• Other customary fees such as credit Housing Counseling Agencies
report fee, appraisal fee, insurance
fee or similar settlement or financ- Is a temporary buydown available for the
ing cost CalHFA FHA loan?
Yes. 2-1 or 1-1 temporary buydowns
• $250 funding fee (payable to are allowed on CalHFA FHA.
CalHFA’s master servicer)
• Follow the master servicer
• $75 tax service fee (payable to guidelines
CalHFA’s master servicer)
• The borrower must qualify at the
• $10 Life of Loan Flood Certificate Note rate
fee (payable to CalHFA’s master
servicer) Will co-signers be allowed for
CalHFA FHA?
• In all cases the lender must meet
federal and California lending laws No, non-occupant co-signors are not
regarding fees and charges. allowed.
(continued on next page)
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 14CALHFA FHA LOAN PROGRAM
FAQ’s (cont.)
Will non-occupying co-borrowers be What is the rate lock period for CalHFA
allowed for CalHFA? FHA?
No. Non-occupying co-borrowers are Lenders may lock the interest rate
not permitted. for sixty (60) days for both existing/
resale properties and new construction
Is there a re-lock fee for the CalHFA properties.
FHA loan?
There is no re-lock fee. If the rate lock I cannot close my loan in time. Can I get
expires or the loan is cancelled, it can a rate lock extension?
only be re-reserved and locked after a All rate lock extensions must be
sixty (60) day waiting period, subject to requested through CalHFA’s Secondary
guidelines in effect at that time. Marketing Unit via email (ratelocks@
calhfa.ca.gov) prior to the expiration
I had to cancel a CalHFA FHA loan of the current rate lock. Rate lock
reservation after the Notice of extension fees are posted on the Rates
Commitment was issued. The sixty (60) & Reservation page of the CalHFA
days have now passed and I have re- website.
reserved the loan. Do I need to submit a
new file to CalHFA? Can my borrower pay for the cost of the
Yes. The lender must submit a new file rate lock extension of the CalHFA FHA?
to CalHFA with current documentation. Yes. The borrower(s) or seller(s) may be
Every file that has a new reservation charged with the cost of the extension
number must have its own file and go fee for the first mortgage, however you
through the approval process. must follow TRID fee requirements.
At the time of purchase by CalHFA’s
When will I be able to lock my interest
master servicer, the rate lock extension
rate for CalHFA FHA?
fee(s) are to be net funded from the
CalHFA FHA has two locking options. lender’s proceeds. Late fees on subor-
The rate can be locked at reservation dinate loans may not be charged to the
or at any time during the reservation borrower(s) and will be net funded at
period if the float-to-lock option is the time of purchase by CalHFA.
chosen. All lenders must have full MAS
access to lock the interest rate. What if the borrower changes properties?
Can I cancel the existing reservation and
I have chosen the float option for CalHFA re-reserve the CalHFA FHA?
FHA, and my loan has already been
Yes, reservations are borrower,
conditionally approved by CalHFA, but
property and lender specific. If the
the rate has increased since approval. Do
I need to have my loan re-underwritten? borrower changes properties, the
existing reservation must be cancelled
Yes. Lenders may not lock a loan in before a new reservation is made. The
MAS with an interest rate that is higher underwriting and program guidelines in
than the interest rate reflected on the effect at the time of the re-reservation
CalHFA Notice of Commitment. will apply.
(continued on next page)
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 15CALHFA FHA LOAN PROGRAM
FAQ’s (cont.)
My borrower had a loan reservation Sale Tools And Marketing Materials
with another lender, but now they want
to go through me. Can I reserve for 1. Government Program Matrix
CalHFA FHA?
2. Scenario Calculator
If the rate was not locked on the
other lender’s reservation, the new 3. Loan Submission, Review
lender may re-reserve the loan once and Purchase Flow Chart for
the previous reservation is cancelled Government
by the original lender. If the rate was 4. Lending Heroes Flyer
locked by CalHFA, the new lender may
reserve the loan after the sixty (60) day 5. Lending Heroes Fillable Flyer
wait period from the original rate lock
6. Lending Heroes Spanish Flyer
expiration.
7. Lending Heroes Spanish Fillable
Does a CalHFA FHA loan simply need to Flyer
be delivered to the master servicer by
the rate expiration date? 8. Lending Heroes Korean Flyer
No. The loan must be delivered and 9. 5 Easy Steps to Buying Your First
purchased by the master servicer prior Home Flyer
to the rate lock expiration date. CalHFA
suggests loan delivery by the 45th day 10. 5 Easy Steps to Buying Your First
for sixty (60) day rate locks or the 75th Home Spanish Flyer
day for ninety (90) day rate locks, or
11. CalHFA and Listing Agents: a Great
earlier to ensure time to clear condi-
Team! Flyer
tions and purchase prior to expiration
date.
How often does the master servicer
purchase for CalHFA FHA?
The master servicer will purchase
approved loans on a daily basis.
2019 CALIFORNIA HOUSING FINANCE AGENCY www.calhfa.ca.gov | 877.9.CalHFA (877.922.5432) 16You can also read
