Hey there! Navigating the home-buying process can feel overwhelming, especially when considering options like manufactured homes. The California Housing Finance Agency (CalHFA) offers programs tailored to assist first-time homebuyers, including those interested in manufactured housing. Let’s delve into one such program to see how it might benefit you.

Program Name

CalHFA FHA Loan Program

Source of Funding

California Housing Finance Agency (CalHFA)

Eligibility Criteria

• First-Time Homebuyer Status: You must be a first-time homebuyer, defined as not having owned and occupied a home in the past three years.
• Credit Score: A minimum credit score of 660 is required for manufactured home purchases.
• Debt-to-Income Ratio (DTI): Your total DTI should not exceed 45%.
• Owner Occupancy: You must occupy the property as your primary residence within 60 days of closing.
• Homebuyer Education: Completion of a homebuyer education course is mandatory.

Property Requirements

• Location: The property must be in California.
• Type: Only doublewide manufactured homes are eligible; singlewide homes do not qualify.
• Compliance: The home must meet FHA guidelines and CalHFA’s property requirements.

Benefits

• Affordable Financing: Access to a 30-year fixed-rate mortgage insured by the FHA, which can offer lower interest rates.
• Down Payment Assistance: Potential to combine with CalHFA’s MyHome Assistance Program for help with down payments and closing costs.
• Deferred Payments: Assistance loans often have deferred payments until you sell, refinance, or pay off the mortgage.

Potential Drawbacks

• Property Restrictions: Singlewide manufactured homes are not eligible.
• Credit and DTI Limits: Stricter credit score and DTI requirements compared to other loan types.
• Occupancy Requirement: You must occupy the home as your primary residence; renting it out is not permitted.

Application Process

1. Consultation: Reach out to a CalHFA-approved lender to discuss your eligibility and financial situation.
2. Pre-Approval: Obtain a pre-approval letter to understand your borrowing capacity.
3. Homebuyer Education: Complete the required homebuyer education course.
4. Property Selection: Find a qualifying manufactured home that meets CalHFA and FHA standards.
5. Application Submission: Work with your lender to submit the loan application and necessary documentation.
6. Closing: Upon approval, proceed to close on your new home.

Program Availability

This program is available throughout the entire state of California.

Sources

• CalHFA FHA Program Details
• CalHFA Government Loan Programs FAQ

Pros and Cons

Pros

• Affordable Financing: Offers a 30-year fixed-rate mortgage with potentially lower interest rates.
• Down Payment Assistance: Can be combined with assistance programs to reduce upfront costs.
• Deferred Payments: Assistance loans often have deferred payments until certain conditions are met.

Cons

• Property Restrictions: Singlewide manufactured homes are not eligible.
• Stricter Requirements: Higher credit score and lower DTI ratio requirements.
• Occupancy Mandate: Must be your primary residence; renting is not allowed.