Southern California Home Financing Authority (SCFHA) program is designed to increase homeownership opportunities for individuals and families in all of Los Angeles County (excluding the City of Los Angeles), and all of Orange County. Down Payment Assistance is provided in the form of a grant (up to 4%) of the First Mortgage Loan amount. This is not a second mortgage. There is no note or deed Mandatory program training is required for anyone that will be working with the file. Reservation must be requested by the loan officer via email to firstname.lastname@example.org only after the file is approved by underwriting. Maximum 30 day lock. Requests must be received by 3:00 pm PST to reserve the same day. All requests received after 3:00 pm will be processed the following business day.
|TERMS||MAX LTV/CLTV/HCLTV||DPA & SECONDARY FINANCING AVAIBLABLE||OCCUPANCY||TARGET AREA||1ST TIME HOMEBUYER REQUIRED||INCOME LIMIT||MAX SELLER CREDIT|
|• FREDDIE MAC HFA ADVANTAGE-Max 97% LTV / 105% CLTV- Must meet all required applicable 1st lien underwriting guidelines Min. 640 Fico Score Note: The loan is ineligible if none of the borrowers has a usable credit score. • 1 unit primary residence only. Condo allowed if project is approved by US Bank • Maximum 45% DTI regardless of AUS-LP ONLY • Freddie Mac HFA Advantage: Cannot exceed $424,100 • FHA/VA/USDA-Must meet all required applicable 1st lien underwriting guidelines-Max. 45% DTI regardless of AUS. Min. 640 Fico Score Manual Underwriting -Not allowed • FHA: Cannot exceed $424,100 including MIP
||• FREDDIE MAC HFA ADVANTAGE: Min Fico-640-Grant equals 4% of the First Mortgage Loan amount • FHA: Min FICO 640-659 3% and 660 +-4% of the First Mortgage Loan amount • USDA/VA: Min. FICO 640- 4% of the First Mortgage Loan amount Grant funds may be used for down payment and/or closing costs. There must be no cash back to the borrower from the Grant proceeds. Any excess grant funds must be used to reduce the principal balance • Secondary financing is permitted if the program is approved by the applicable underlying loan product agency and conforms to agency guidelines. Borrowers may not receive any cash back. Contact Secondary to confirm acceptance of any secondary financing • MCCs are allowed and may be used for credit qualifying purposes per first lien guidelines
||OWNER OCCUPIED ONLY
||YES • Non Targeted Areas $585,713 • IRS Designated Targeted Area Census Tracts $715,872 Orange County • All cities and unincorporated areas are eligible Los Angeles County • All cities and unincorporated areas except the City of Los Angeles areas Note: If a property is located in the County of Los Angeles County and has an IRS Census Tract Number of 2999.99 or lower, that property is located in the City of Los Angeles jurisdiction and DOES NOT QUALIFY for the program. Go to www.ffiec.gov.geocode to verify the IRS Census Tract Number
||· Borrowers are required to be first-time homebuyers unless the borrower is purchasing a home in an IRS Designated Target Area Census Tract. • A first-time homebuyer is defined as a borrower who does not have a present ownership interest in a principal residence at any time during the three (3) year period immediately before the date of obtaining the Program loan •Conventional- Borrower(s) may not, as of the Note Date, have any individual or joint ownership interest in any other residential properties
YES • Los Angeles Countyo 1-2 person household: $108,120o 3+ person household: $128,140 • Orange Countyo 1-2 person household: $125,160o 3+ person household: $146,020 • The income of borrower(s) and spouse whether or not spouse is liable on the loan or is on the title must be included • Income must also be included for any adult (over 18 years of age) who will live in the household and be secondarily liable on the note or on the title • Program income is not averaged. It is annualized. This income calculation is different from income used for credit underwriting • Must provide fully executed 4506-T form • Federal Income Tax Returns or transcripts are required for the past 3 years for borrowers and spouse, even if the spouse is not on the loan or on title unless the borrowers are purchasing a home in an IRS Designated Targeted Area Census Tract NOTE: Calculation of program (compliance) income is different than calculation of income for credit purposes. The program requires that underwriters include all income of borrowers and their spouses (regardless of their address) and all household members 18 years of age or older (related or unrelated) who are secondarily liable on the note or on the title and expected to live in the residence. Because each case is different, email email@example.com if you have any questions. Also refer to SCHFA Income Requirements. PLEASE SEE GUIDELINES FOR SPECIFIC INCOME REQUIREMENTS & CALCULATION
|Follow 1st TD guidelines
SCHFA-First Program (Southern California Home Financing Authority) is available in the following areas/cities
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