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CALIFORNIA HOMEBUYER’S
DOWNPAYMENT ASSISTANCE
PROGRAM (CHDAP)
Note: For details on guidelines not specified below, please refer to the product profile of the applicable first mortgage.
PROGRAM SUMMARY
TERM
PRODUCT NAMES
ALLOWABLE ORIGINATION
CHANNELS
MAXIMUM LOAN
AMOUNT
MINIMUM CREDIT SCORE
MAXIMUM CLTV
RATIOS
CHDAP Product Profile
Guidelines Subject to Change

The California Homebuyer’s Downpayment Assistance Program (CHDAP) is a deferred
payment, simple interest rate junior lien. The CHDAP loan is available up to, but cannot exceed,
3% of the sales price or appraised value of the property, whichever is less.

The CHDAP can be used for down payment assistance and/or closing costs with fixed rate,
Conventional, FHA and VA first liens.

This program is for first-time homebuyers anywhere in California.

For additional reference, feel free to visit the CHDAP guidelines posted at CalHFA’s website:
http://www.calhfa.ca.gov/homeownership/programs/chdap.pdf

The term of the CHDAP matches the term of the first mortgage, not to exceed 30 years.

Payments are deferred for the life of the first mortgage.

The CHDAP is due and payable at the earliest of the following events:

Transfer of title

Sale of the property

Payoff or refinance of the first lien

Upon the formal filing and recording of a Notice of Default (unless rescinded)

CalHFA CHDAP 2nd w/FHA 1st

CalHFA CHDAP 2nd w/non-FHA 1st

Wholesale

Retail

3% of, the lessor of, the purchase price or appraised value.

When the applicable government insurer/guarantor requires multiple appraisals, CalHFA will
base the CHDAP loan amount on the lesser of: 1) the sales price or 2) the least appraised value

Associated First Mortgage: no restriction for the first trust deed loan amount (within Agency
limits– high balance is allowed)

Government first liens:
 640 Minimum FICO Score

Conventional first liens:

LTVs ≤ 95%: 640 Minimum FICO Score

LTVs > 95%: 680 Minimum FICO Score

103% Maximum CLTV, or as further restricted by first trust deed product (but in all cases
cannot exceed 103% CLTV)
Reservations taken before 10/6/14:

45% Maximum DTI
Reservations taken on or after 10/6/14:

43% Maximum DTI
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BORROWER
REQUIREMENTS
QUALIFYING
HOMEBUYER
EDUCATION
MAXIMUM INCOME
MINIMUM BORROWER
CONTRIBUTION
OCCUPANCY
CHDAP Product Profile
Guidelines Subject to Change


First-time homebuyers only.
All borrowers, including co-borrowers, must reside in the home and meet the definition of a
first-time homebuyer.

A first-time homebuyer is defined as a borrower who has not had an ownership interest in any
principal residence during the previous three years.

Co-signers are allowed but cannot occupy the property or be on title

Non-occupant co-borrowers are not allowed.

Registered Domestic Partners are treated the same as spouses

Tax savings derived from Mortgage Credit Certificates (MCC) may not be used for credit
qualifying purposes (including DTI calculations or income qualifying purposes)

Homebuyer education counseling will be required for one occupying borrower on each loan
transaction.

The homebuyer education course must be taken with one of the following:

Online on the eHomeAmerica website

http://ehomeamerica.org/calhfa

In-person through NeighborWorks America

http://www.nw.org/network/nwdata/homeownershipcenter.asp

CalHFA's required eHome homebuyer education class costs borrowers $50, including
immediate access to their completed certification for printing.

Please ensure borrowers do not pay up to $350 for eHome's online homebuyer education
class (including a follow-up telephone interview, not required by CalHFA), and tell them to
use the link on CalHFA's website (which is listed above) when registering for their
homebuyer education.

The “Maximum Tax Compliance Income” of all borrowers cannot exceed the published
CalHFA CHDAP Moderate Income Limits established for the county in which the property is
located.

CalHFA will calculate family income for CalHFA CHDAP program eligibility. “Family income” is
defined as the annualized gross income of a mortgagor, and any other person who is
expected to:
 be liable on the mortgage, be vested on title; and live in the residence being financed

Non-purchasing spouse’s income is not counted in the income limit

Income limits are based on the number of occupant in the household

Underwriter will use the income per the loan application and will request information in writing
on number of individuals occupying the property if it is determined to be needed

CalHFA uses “current/forward” income and 2106 expenses are not deducted from the income
calculation for meeting income requirements
Reservations taken before 10/6/14:

A borrower minimum required investment based on their middle credit score of the lowest
scoring borrower will be as follows:
 640-679 = $1,500
 680+ = $1,000

The minimum required investment can be from the borrower’s own funds or gift funds per first
mortgage guidelines.
Reservations taken on or after 10/6/14:

No borrower minimum required investment

All borrowers must occupy the property as their primary residence.

Borrowers must occupy the financed residence as the principal residence within 60 days of
closing.

Property must be owner-occupied for the term of the loan or until the property is sold.

Non-occupant co-borrowers are not allowed.
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PROPERTY
REQUIREMENTS



Properties with
Accessory Unit
ANTI-FLIPPING POLICY
DOCUMENT EXPIRATION
UNDERWRITING








CHDAP Product Profile
Guidelines Subject to Change
The sales price of the home cannot exceed CalHFA’s, county specific, sales price limits
Eligible properties include:

Single Family Residences

Condos

PUDs

Modular Homes

Properties with accessory unit (see section below)
Ineligible properties include, but are not limited to:

Manufactured Homes

2-4 Units

Leaseholds/Land Trusts

Co-ops

Properties sold at auction

Properties larger than 5 acres

Indian land (leased or fee simple)

Any property containing additional units, including guest houses, “granny” units, “in-law”
quarters, and/or separate units containing kitchen facilities
Guest houses, granny units and in-law quarters are eligible under the following conditions:

Must be zoned for Single Family occupancy

Cannot be zoned 2-4 units

Must meet investor guidelines and city/county zoning ordinances

May not be income-producing and must be for personal use only
Follow corresponding first trust deed program requirements
Follow associated first trust deed document expiration dates
Loan must be submitted for underwriting by CalHFA
California Housing Finance Agency
Single Family Lending - 910
500 Capitol Mall, Ste. 400
Sacramento, CA 95814
Main phone number: 916.326.8000 Main fax number:
916.326.6424
Loan submission to CalHFA must include:

All loans are required to have a HUD 92900-A page 3 signed by the underwriter

The HUD 92900-LT only requires an underwriter’s signature on downgraded or manually
underwritten loans

Final Automated Underwriting System (AUS) findings

Findings must be Approve/Accept with non FHA products, but can be Approve or
Refer for FHA products)

Final lender in-house approval with list of conditions

Final loan application

Preliminary Title Report (separate title report for the second is not required)

Appraisal

CalHFA Borrower & Lender Affidavit Of Loan Analysis Comparison

CalHFA Borrower Affidavit (available in the Resource Center) is required and replaces
the following six affidavits:

Statement of Citizenship, Alienage, and Immigration status for State Public Benefits

Lender Verification of Citizenship/Qualified Alien Status

Borrower Affidavit of Household Size

Borrower’s Certification & Authorization

Military Service Questionnaire

Borrower Acknowledgment for Purchase of Home Warranty Protection Plan
Three (3) years 1040s are required (all borrowers)
Loans must meet all guidelines of the first mortgage being used.
In addition, the first mortgage must meet the following requirements:

Fully amortized, maximum 30 year fixed rate.

No manual underwriting allowed on non-FHA first mortgages. Manual underwriting
allowed on FHA first mortgages

No temporary buydowns allowed.

Maximum of 4 co-borrowers allowed.
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FEES AND POINTS


SPECIAL
REQUIREMENTS






CHDAP Product Profile
Guidelines Subject to Change
Fees and Points charged to the borrower are limited as follows:

Broker Comp Plan must be Borrower-Paid Compensation
For reservations taken on or after 6/2/2014 :

When using CHDAP, any CalHFA or non-CalHFA first mortgage maximum allowable fees
are:

Customary lender origination fees up to 3% of the total first mortgage loan amount or
$3,000, whichever is greater is now allowed. This maximum fee applies to all CalHFA
first mortgage loans as well as CHDAP loans subordinate to any non-CalHFA first
loan.

In addition to the above fees, other customary third-party fees such as credit report
fee, appraisal fee, insurance fee or similar settlement or financing costs may be
charged. In all cases the lender must meet federal and California lending laws
regarding fees and charges.

Note, for the first trust deed, when the plan is Borrower Paid Compensation, the lender
underwriting fees and the broker’s origination fees count towards the 2%, however,
discount points are not included on this limit. When the first trust deed plan is using
Lender Paid Compensation, do not count the brokers compensation in the limit.
Must enter CHDAP Number and registration expiration date in the Loan Notes section of
FastTrac.
A loan specific letter containing language in compliance with HUD will be issued
simultaneously with the CalHFA subordinate loan Conditional Approval that is to be junior to
an FHA-insured loan. This letter must be included in the loan file that is closing with any FHAinsured loan.
Repair escrows are not allowed
Not eligible behind 203K or HomePath products
One-year home warranty required (reservations taken on or after 10/6/14)
Cannot be combined with non-CalHFA Entergy Efficient Mortgage – which PRMG does not
currently offer (reservations taken on or after 10/6/14)
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