Patty Manzi’s Tri-Valley Real Estate Blog

As of December 19th, CalHFA suspended the following active CalHFA First Mortgage Fixed Rate Loan Programs and Down Payment Assistance Programs:

• 30-year fixed mortgage products, including Moderate Income, Low Income, Non-Profits & Affordable Housing Partnership Programs (AHPP), Extra Credit Teacher Programs (ECTP)
• California Homebuyer’s Down Payment Assistance Program (CHDAP)
• Extra Credit Teacher Program (ECTP)
• School Facility Fee Down Payment Assistance Program (SFF)

These programs are being temporarily suspended as a result of the action taken by the Pooled Money Investment Board (PMIB) on December 17, 2008.  The PMIB loans money to state agencies to advance program funds which will later be repaid through bond issuances .  CalHFA uses a PMIB loan to initially fund its Conventional 30-year fixed mortgage and down payment assistance programs.  The recent PMIB action froze all such PMIB loans.  It is anticipated that this freeze will continue until the state budget crisis is resolved.

CalHFA will continue to accept reservations for loans under the Community Stabilization Home Loan Program (CSHLP) and SMART Loan Program.  However, please note that CHDAP funds will not be available for use with these programs.

(This information was taken from the California Housing Finance Agency’s Homeownership Program Bulletin dated December 19, 2008.)

For more detailed information, please visit www.calhfa.gov, or contact your favorite mortgage professional.  If you don’t have a favorite mortgage professional, contact me for a referral!

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