UPDATE: CalHFA says that funds are likely to run out by Monday April 10, 2023, with any locks recieved AFTER April 12, 2023 will be cancelled. There are rumors of additional funding coming either late this year or early next year so hit that Subscribe button to stay in the loop!
What if the appraisal value is lower than the purchase price when one sells the home. Would you still need to “share”appreciation or pay the 2nd mortgage? Also, how long does one need to live in the home?
this would be a good fit. Last year when I first heard about this, the loan was for10%, now it is 20%. So, please listen people for the rest of this, I certainly will, just to hear the difference. thks. love to go to California, or should I say, back to California.😎😎
Hi, thank you for the contact. I tried to call you and schedule an appointment, but I think your contact is incorrect because it says it's the wrong number.
Thanks for sharing this update on the California Dream for All Down payment Assistance program guidelines! It's great to see efforts being made to make homeownership more accessible for more people. I'll definitely be checking out the video to learn more about the updated guidelines.
@@PC-qe4rl I disagree. It’s a brand new program that people are scrambling to catch up on. Financing is a different world than what realtors deal with. I respect them for continuing to be a student of the game and educating themselves to serve their clients better. My best realtor partners are top 1% earners and help 100’s of families every year and they watched this video to educate their clients, too.
@@PC-qe4rl yea I knew about it already, but it’s good to get a lender that does this loan as most lenders in my area won’t do this type of loan. If this guy can explain this so well they can do the same for my clients.
Question, could the 20% be used in conjunction with a large downpayment that the buyer might already have? For example, lets say we have $100,000 saved at the moment for a down payment on a $500k home.. Could the programm still be accessed to get the payment down even futher and make a place even more affordable, allowing me to get the payment low enough to make additional monthly or bi weekly payments towards the principal for early payoff?
Hi Caton! This video was so helpful and full of such useful information, so thank you for that! All you need to do then is apply for the program through one of their CALHFA recommended loan officers and that will secure you the ability to gain the 20% down? Or do you actually have to be in escrow in order to be eligible for the funds? That's where it started to get a bit confusing for me. You rock!
hi Joshua! you have to apply since it is written like a typical mortgage, however funds are reserved 1st come 1st serve so getting under contract ASAP is going to be key.
I was confused a bit concerning the refinancing portion. Does the shared appreciation get cancelled out completely when you refinance? Or does that mean it rolls over to your 2nd property and the shared appreciation comes out of property #2 instead of propert #1?
Ok. I Kept the house for 30 years or paid off the loan. How does the repayment works? Will I have to pay the full amount or how does the repayment works?
You would pay the original 20% they lent you plus 20% of the difference between the original value and the current value. Bank would likely order an appraisal or valuation to come up with that. You’ll either pay for it by taking out a new mortgage (most likely) or pay it cash (least likely)
If the buyer's DTI is over 50%, can the buyer put additional down in addition to the 20%? I am also curious how do we show proof of funds when making an offer? It sounds like a great idea but the realtors don't seem to be excited. Finally, the 8-hour online education takes up to 7 days for the completed cert due to the volume. I am in LA County.
Hello. I’m interested and would like to know more information. Tried to book a consultation with you but your all book until next month. Do you by chance able to squeeze us in soon? Thank you
Question! Say we buy a house for 600k. They lend us us 120k. We go to sell in 7 years. We now owe them the 120k PLUS 20% appreciation of our home value? Is this correct?
If the min cltv is 70%, does that mean the buyers can put down 30% from their own and get get another 20% from calhfa which puts the ltv to 50% and cltv to 70%.
So what happens if the $300M fund runs out in the middle of escrow? At which point will the borrowers know for sure that they will get the money? At the time of the loan application submission? At the time of the loan approval? or at the time of funding/closing? If it is the last one (at the time of funding and closing), buyers will need a long loan contingency period and it will be almost impossible to have sellers accept such terms unless they are desparate to sell.
Your video did touch the closing costs. Does the borrower have to pay their own closing costs or can you use additional DPA program for help with closing costs?
You can use up to 5% of the funds from this to cover your closing costs leaving 15% for the down Sweet spot is really 17% down and 3% closing costs though
Thanks for the super informative video! Do you know if the stipulation that it has to be owner occupied holds for the entire period of the loan? In other words, could I live there for 6 - 12 months and eventually rent it out / AirBnB the property?
I think they should hold the same requirements as the FHA loans, as we need more low income owners, than people looking to invest or already have the funds needed to afford the lowest mortgage rates.
@calton del what about new construction ? What if the construction is going to be complete in 3 months ? Can we still make use of this program with the rate lock or any other ?
Hi Caton, thanks for summarizing all of this so nicely! I am curious about the income limit since I am married and file jointly. Would we have to apply together and account for both of our incomes, or could only one one of us apply even though we file jointly?
Thank you for your information. I have two "limitation" questions. Is there any limitation of a house purchasing price? and Is there any limitation of the down payment assistant amount?
Hi! Purchase price will depend on county but if you were in a high cost of living area like Los Angeles it would be around $1.3M using the full benefit of the program and none of your own funds By the same logic that’s around $260k in DPA funds
Hey Caton thanks for another excellent video. If we make improvements to the property after buying it which adds value to it like upgrading the bathrooms or the kitchen will we be able to deduct that from the appreciation when we sell the house?
Good point! CA’s share in appreciation is going to be based soley on the difference between original price and future value. So they would technically share in whatever work you’ve put into the home too
If I purchased a house with this program am I allowed to rent out some of the rooms (assuming I also live in the house as a primary residence)? I heard that I can't rent the entire house out because that would make it an investment property which isn't allowed, but would I be allowed to rent some rooms out?
So if you choose to buy a new home after living there for a certain amount of time. But still keep owning that home and instead start renting the home out. Will you still need to pay back 20%? Or something if the sorts?
@@CatonDelRosario your calendar is fully booked, any possible you could squeeze me in early next week? I am about to make an offer this weekend, I want to know more about dream for all program and I want to apply. Would you please help. Thank you
Thanks for the video. What if borrower makes a loss when selling the home? Should I return all the money i borrowed or the portion of the loss is covered by the state?
When you eventually sell the house, won't your profit/equity be eaten up by closing costs, real estate commission, inspection, expenses etc if you use the full 20%? So unless your house appreciates by some significant amount, you might come out with enough to put down for a new home. I also worry about prices sky rocketing further with this program or at least not coming down at all. Maybe I'm being too pessimistic. My GF and I combined are around 200% AMI 800+ credit scores, so I'm thinking we won't qualify regardless
I covered this example in my other video on this. home goes up $100k in value you pay back the state the original loan + another 20K, you keep 80k + whatever principal you've paid down on the loan. funds are limited so maybe 2000 families will use this out of the over 45k SFR's listed in just SoCal alone, so a drop in the bucket as far as having any real impact on home prices.
So if I am matching right. If the purchase is 1 million, the government covers 200k and the house appreciates to 1.2 million. You owe the government 50k?
Hi Canton! Unfortunately I missed out on the Dream for All as well as the Forgivable Equity Builder program which I qualified for. Do you think there will be another similar DPA loan program released this year? They were too good to be true.
Not at all! You have to be in the same line of work for at least two years but as long as it’s the same kind of work you’ve been doing for a long time, you can be on your new job for as little as a month!
That’s so great to hear I have been told differently and thought I wouldn’t be able to apply thank you so much for clarifying that, your channel is extremely helpful!
@orelmor you’re very welcome! Feel free to schedule a call with my team we’re glad to help! You can schedule a time to chat on my calendar here: calendly.com/catondelrosario/consult
So, if I understand this right, the shared appreciation is never removed from the property, even if you do the one-time ReFi and pay back the original 20% down payment loan. No matter what, they will get 20% (25%?) of the appreciation upon some kind of title change or 2nd ReFi.
Correct, since the loan they give you for the 20% down is a 0% silent second (no monthly payments required), the way they make money and recycle funds is thru the shared appreciation feature.
Hi Caton, thank you for this video. When using this program, is there a point origination fee required? My lender is saying all CALFHA loans require 2 points on the loan?
Yes if it’s move in ready. Otherwise if it’s going to take time to build you might miss out because funds can only be reserved for 40 days once you’re under contract
hi! thanks for making this video! I had a question; what happens if you pay off the house? does the state come knocking asking for their loan back or is this only payed back if the house is sold or refinanced? Thanks!
Hi! In the event the mortgage is paid off it would trigger the repayment clause. How they know or how they will come collect is an unknown at this point though
At a minimum CalHFA will claw back the original principle so there would be no share in your losses. Best advice would be to not sell in that situation if it can be avoided
If u refinance, let’s say at 4% , yrs later . Do u still have to pay to cal aid 20% plus the 20% equity .. there’s no way around paying back the state loan down payment & appreciation
Question - If for example, I can afford a 50% down payment on my own, am I still able to use the 20% from this program so essentially my down payment is 70%? In one of your replies you mentioned that since the LTV min is 70%, we would only be able to contribute 10% as down payment (10% + 20% from program), and in another reply you mentioned that if someone had 20% down payment they can combine it so it becomes 40%, but doesn't that exceed the 70% limit because in this case it'd be 60% LTV? Or am I misunderstanding LTV/this program altogether? So in my example case if I'm already able to put in a 50% down payment would I still qualify for this program, and would it be beneficial or not to use it?
70% is the “minimum” so the Lowest you could go so max down you could add on top of the 20% would be 30% So you could do 40% of your own + 10% of the state’s funds and owe less to them in the future
@@CatonDelRosario Sorry I'm still not understanding fully... 1. When you said "70% is the “minimum” so the Lowest you could go so max down you could add on top of the 20% would be 30%", do you mean 20% from the program, and 30% from my own cash, meaning 50% down payment total? Or do you mean 20% from state funds + 10% of my own = 30% 2. And when you say "40% of my own + 10% of the state's funds", that means 50% down payment right? So in my original question if I already have enough cash for 50% of a down payment, would I still be able to use 20% state's fund for a total of 70% down payment?
So the max combined loan to value is 70% and of course you can only finance up to 100% of the price of a home. So 70% combined loan to value only leaves room for 30% of your own down for a 100% purchase price
Thanks for the info! Do you know how this would apply to new self employed borrowers? We made around $130k in 2021 and $200k in 2022. Would our income qualify - we are in Riverside-?
What if you have mortgage lenders and/or real estate agents that aren't very pro down payment assistance? I've asked lenders and agents about down payment assistance and they won't say anything and they'll avoid answering the questions.
Hey I'd love to get on a call with you. I'm in the Joshua Tree area and found a new construction single family home I want to buy. I want to know if this would be a good fit and also had some questions about adding more to the downpayment.
Utah seems to continue to defy many of the US Trends. We have many from California, even Winters, California, including myself moving to Utah. Why do you think so many people are leaving California to come to Utah?
Hi how many days does it take to close? I am hearing 45-60 days.... this would make it hard for the seller to want to take our offer from this program :(, any thoughts?
But wouldn't you still be paying taxes on the full value of the home? So you're paying more tax on a more expensive house, yet you're missing out on the benefit of the full amount of appreciation
That’s correct. But you do get the full benefits of any tax benefits of ownership. Most of the people who used this bought forever homes anyways vs buying a starter home, selling, and then buying again. Essentially allowed them to skip a step they otherwise wouldn’t have afforded.
@@TEN-S60 the high balance fee of about 1.2% as of today is the fee to use a high balance loan amount. The 2% lender fee is set regardless of loan amount. So if you were to use a high balance loan it would be the 2% lender fee PLUS the 1.217% high balance fee
What if I already have enough for a 20% down payment (but no a high enough salary to obtain the house I want)- can I still get the California dream loan?
I'm getting ready to put in an offer myself and was wondering the same thing. If I need to take the course I want to do it sooner rather than later to be safe because we need a house ASAP.
Heres a question. What if I buy a $400k home and refinance in x amount of years when the home depreciates to $250k, would they still take 20% being that the home depreciated instead of apreaciated?
@@VIVACRISTOREY- yes that’s correct. But also you likely wouldn’t be able to refinance at that point depending on the balance of your existing mortgage.
So many unanswered what ifs here! From an real estate investment stand point. What if you want to use this loan to purchase an investment property that you live in. Once the property appreciates, can you do a cash out refi without triggering a payback? or can CalHFA add restrictions and rules on this down the road?
Do you mean buy it as a primary and then rent it out later? Cash out refi would trigger the repayment of funds. The one time only refi would be for a lower rate only. The extra disclosures they have for the shared equity funds are fairly cut and dry, so I don’t see how they could add any extra restrictions later down the road though.
Thank you Caton ! It is true what you said ! Not a lot of lenders know about this program ! I applied through a lender officer and did both courses just waiting on the phone call to get the certificate .The only bad thing they are giving appointments until June !
@@CatonDelRosario thanks for getting back to me! I think paying off some cards will help boost his score. Let’s hope the funds don’t run out too quickly!
You mentioned that the minimum loan to value is 70%. So to confirm, that means that someone couldn't actually come in with $0 down, even if they used the full 20% assistance towards the down payment? They would be required in this case to bring in 10%?
So it’s Combined Loan to Value so the minimum you could have is 70% the max is 105%. Because the assistance takes up 20% that means the lowest you could go on loan to value is 70% (50% first mortgage, 20% DPA, 30% own downpayment) And max would be 105% (85% mortgage, 15% down payment assistance 5% closing costs) Hope that makes sense!
@Caton Del Rosario - Millennial Mortgage Pro Thank you for clarifying. I heard it incorrectly the first time. I thought you meant that the minimum someone would need to come in with is 30% but I realized that you meant that the highest amount someone could down in total is essentially 30% of the value in combination with the dpa. Question: How many points are you charging buyers to use this program?
Yes the program is paused for the foreseeable future! I will keep you all up to date on what’s next for the program as it will eventually be a revolving door of funds for home buyers!
possibly, but i think that's only if people jump the gun. my personal bench mark would be getting to under 5% but it depends on the person's unique financial situation.
True. But rates getting to the 2’s was an anomaly anyways. Sweet for those who could though but rates in the 4’s are honestly great over the past decade
In LA this can go up to $1.35M if just using the 20% down and not adding any of your own money to the down payment! Of course you still have to qualify for the mortgage. I’ve got a couple buyers using it at that exact price point right now.
@@amymitchell7996 you can. from what guidance I have you can add an additional 10% percent down of your own funds to the down payment, but it might be as much as 30% extra down for a total of 50% down! waiting on clarification.
So are there any hidden fees or extra interest rates for using this program? Also, what happens if there no appreciation on the home. What happens then?
No “hidden” fees but closing costs total about 3-4% of the purchase price. At a minimum the state will take back the amount they lent you for your down payment even if the home goes down in value
Hi Caton, I'm interested in a newly constructed home that will finish building in November 2023. I want to put in an offer right now, but can CalHFA funds be reserved to close the contract by then? I'm concerned that I'll lose the % down for reservations/escrow if CalHFA only applies to homes that are ready to move in right now. I'm still waiting on my loan officer to confirm that detail. Hope you have insights in this too! Thanks!
Hi Autumn! Unfortunately funds are first come first serve so you’ll need to be under contract on something that will close ASAP. November is a really long time out and it’s more than likely funds will be fully spent by then. I would recommend going now! Also, having an LO who responds fast and knows their stuff is KEY to a great buying experience. Let me know if you’d ever like a second opinion, I’m more than happy to help!
Could really use your help. I’m trying to buy a home and seems like every major lender I speak to has no idea of this program and no idea if I qualify and doesn’t seem to approve the loan. What should I do to find a lender and is there still a way to use a major lender?
The income limit says June 6th 2022. Does this mean your annual income has to be lower than this number before June 6th 2022. The reason I'm asking is in 2022 my income exceeded this limit however I was making way less in 2021. I wonder if I still qualify?
UPDATE: CalHFA says that funds are likely to run out by Monday April 10, 2023, with any locks recieved AFTER April 12, 2023 will be cancelled.
There are rumors of additional funding coming either late this year or early next year so hit that Subscribe button to stay in the loop!
@@scalelabs it’s posted on the CalHFA website that it’s paused. Making a follow up video for what to expect tomorrow & posting it next week :)
@@CatonDelRosario Thank you! Its crazy how fast the money went away
I’ve definitely confirmed a lot of people already in contract on homes switched to it when the program went live. That had a lot to do with it
Got a house under contract using this program! So thankful for it! Thank you for sharing this :)
Let’s gooooo!!!
What if the appraisal value is lower than the purchase price when one sells the home. Would you still need to “share”appreciation or pay the 2nd mortgage? Also, how long does one need to live in the home?
this would be a good fit. Last year when I first heard about this, the loan was for10%, now it is 20%. So, please listen people for the rest of this, I certainly will, just to hear the difference. thks. love to go to California, or should I say, back to California.😎😎
Hi, thank you for the contact. I tried to call you and schedule an appointment, but I think your contact is incorrect because it says it's the wrong number.
Thanks for sharing this update on the California Dream for All Down payment Assistance program guidelines! It's great to see efforts being made to make homeownership more accessible for more people. I'll definitely be checking out the video to learn more about the updated guidelines.
This channel have provided so much value I am a realtor in OC and will definitely call you if I find anyone that’s wants to use this program!
Thank you so much!
If you have to go a RUclips channel for resource, then you have loads of work to being a good realtor. As a realtor it's something you know.
@@PC-qe4rl I disagree. It’s a brand new program that people are scrambling to catch up on. Financing is a different world than what realtors deal with. I respect them for continuing to be a student of the game and educating themselves to serve their clients better.
My best realtor partners are top 1% earners and help 100’s of families every year and they watched this video to educate their clients, too.
@@PC-qe4rl yea I knew about it already, but it’s good to get a lender that does this loan as most lenders in my area won’t do this type of loan. If this guy can explain this so well they can do the same for my clients.
What a dumb comment. This just shows how dumb California realtors are.
Question, could the 20% be used in conjunction with a large downpayment that the buyer might already have? For example, lets say we have $100,000 saved at the moment for a down payment on a $500k home.. Could the programm still be accessed to get the payment down even futher and make a place even more affordable, allowing me to get the payment low enough to make additional monthly or bi weekly payments towards the principal for early payoff?
Let's say I'm approved for the home loan.
Can I rent out the bedrooms to make extra income
Glad i found this channel already booked an appointment!
Hi I’d like know how this program works if your home depreciates and need to sell ?
Hi Caton! This video was so helpful and full of such useful information, so thank you for that! All you need to do then is apply for the program through one of their CALHFA recommended loan officers and that will secure you the ability to gain the 20% down? Or do you actually have to be in escrow in order to be eligible for the funds? That's where it started to get a bit confusing for me. You rock!
hi Joshua! you have to apply since it is written like a typical mortgage, however funds are reserved 1st come 1st serve so getting under contract ASAP is going to be key.
I was confused a bit concerning the refinancing portion. Does the shared appreciation get cancelled out completely when you refinance? Or does that mean it rolls over to your 2nd property and the shared appreciation comes out of property #2 instead of propert #1?
Ok. I Kept the house for 30 years or paid off the loan. How does the repayment works? Will I have to pay the full amount or how does the repayment works?
You would pay the original 20% they lent you plus 20% of the difference between the original value and the current value. Bank would likely order an appraisal or valuation to come up with that. You’ll either pay for it by taking out a new mortgage (most likely) or pay it cash (least likely)
If the buyer's DTI is over 50%, can the buyer put additional down in addition to the 20%? I am also curious how do we show proof of funds when making an offer? It sounds like a great idea but the realtors don't seem to be excited. Finally, the 8-hour online education takes up to 7 days for the completed cert due to the volume. I am in LA County.
Hello. I’m interested and would like to know more information. Tried to book a consultation with you but your all book until next month. Do you by chance able to squeeze us in soon? Thank you
Hi! I recently added some times. Even if it’s far out my team is calling everyone in advance
Question!
Say we buy a house for 600k. They lend us us 120k. We go to sell in 7 years. We now owe them the 120k PLUS 20% appreciation of our home value? Is this correct?
Another great video! I hate how other people on RUclips are saying this program sucks to dissuade others from using the funds.
lol let them, I'll always try to help from an unbiased pov.
If the min cltv is 70%, does that mean the buyers can put down 30% from their own and get get another 20% from calhfa which puts the ltv to 50% and cltv to 70%.
Can you confirm this Caton?
I am also confused about the 70% CLTV too. At this point, I don't think the handbook specifies this clearly.
Yeah I’m honestly unsure. Granted it’s a unique situation that few will do, it’s not very clearly stated in the handbook.
Can you confirm with CalHFA? 30% vs 50% is a huge difference for a lot of people. Thank you!
So even if you parents own a condo or a house, in the last 3 years, as long as you’re not on the title, you qualify?
So what happens if the $300M fund runs out in the middle of escrow? At which point will the borrowers know for sure that they will get the money? At the time of the loan application submission? At the time of the loan approval? or at the time of funding/closing? If it is the last one (at the time of funding and closing), buyers will need a long loan contingency period and it will be almost impossible to have sellers accept such terms unless they are desparate to sell.
So some lenders can’t reserve until the end but we are able to reserve it while under contract for 40 days
Your video did touch the closing costs. Does the borrower have to pay their own closing costs or can you use additional DPA program for help with closing costs?
You can use up to 5% of the funds from this to cover your closing costs leaving 15% for the down
Sweet spot is really 17% down and 3% closing costs though
Thanks for the super informative video! Do you know if the stipulation that it has to be owner occupied holds for the entire period of the loan? In other words, could I live there for 6 - 12 months and eventually rent it out / AirBnB the property?
No sir your best bet for that scenario is to go FHA
Sounds like u want financial gain. Leave it for people who really need it
So say I down 10% and have the government cover the other 10 and maybe closing cost? Do I still owe them 20% of shared equity?
Nope, you would only owe 10% since you only used 10% of their assistance
I think they should hold the same requirements as the FHA loans, as we need more low income owners, than people looking to invest or already have the funds needed to afford the lowest mortgage rates.
@calton del what about new construction ? What if the construction is going to be complete in 3 months ? Can we still make use of this program with the rate lock or any other ?
Funds can only be reserved for 40 days so unless it’s move in ready I would avoid new construction
Hi Caton, thanks for summarizing all of this so nicely! I am curious about the income limit since I am married and file jointly. Would we have to apply together and account for both of our incomes, or could only one one of us apply even though we file jointly?
We only need the income we need to qualify! So if once spouse makes enough to qualify we can do that
That refinance part is huge! So if you never sell your home, would you ever have to pay the state back? Like maybe after 30 years?
Pretty much the 30 years! Kick that can down the road!
Thank you for your information. I have two "limitation" questions. Is there any limitation of a house purchasing price? and Is there any limitation of the down payment assistant amount?
Hi! Purchase price will depend on county but if you were in a high cost of living area like Los Angeles it would be around $1.3M using the full benefit of the program and none of your own funds
By the same logic that’s around $260k in DPA funds
Thanks for the informational video!Once you are in the program,is there a deadline for you to use the funds and buy the house?Thank you!
Funds are going first come first serve so even tho you’re PreApproved you’ve gotta find a house before the funds are all spent.
@@CatonDelRosario oh boy so fast!thank you!
Hey Caton thanks for another excellent video. If we make improvements to the property after buying it which adds value to it like upgrading the bathrooms or the kitchen will we be able to deduct that from the appreciation when we sell the house?
Good point! CA’s share in appreciation is going to be based soley on the difference between original price and future value. So they would technically share in whatever work you’ve put into the home too
Well done, thanks Caton!
If a married couple is applied for the loan, does both have to be first time buyer?
Yes
Hello, does this program work for new development homes? Thank you.
If I purchased a house with this program am I allowed to rent out some of the rooms (assuming I also live in the house as a primary residence)? I heard that I can't rent the entire house out because that would make it an investment property which isn't allowed, but would I be allowed to rent some rooms out?
As long as you live in one for at least the first year you can house hack but you can’t use that income to qualify
What if your house depreciates when you sell? Will you owe the 20% still?
yes
This is the part that’s sketchy. Prices of houses are already high and they could easily lose value by the time the loan is due
What if I apply and get approved but do not find a good enough deal to fit my criteria? Or do I find the home first then get approved
Can i heloc later on with this loan?
When does the DFA loan and Share of Appreciation has to be paid back if the house will not be sold?
Can self-employed apply for the programs?
When the mortgage is paid off or title is transferred!
Yes, self employed people can apply as well!
So if you choose to buy a new home after living there for a certain amount of time. But still keep owning that home and instead start renting the home out. Will you still need to pay back 20%? Or something if the sorts?
You can rent out as long as you owner occupied for the first 12 consecutive months
That’s perfect, I want to get a TH in San Diego this year, and I meet all the qualifications
Let’s go! Send me a message and we’ll get to it! calendly.com/catondelrosario/dream-for-all
@@CatonDelRosario your calendar is fully booked, any possible you could squeeze me in early next week? I am about to make an offer this weekend, I want to know more about dream for all program and I want to apply. Would you please help. Thank you
Shoot me an email caton@amnetmtg.com
Thanks for the video. What if borrower makes a loss when selling the home? Should I return all the money i borrowed or the portion of the loss is covered by the state?
State gets back the original amount
When you eventually sell the house, won't your profit/equity be eaten up by closing costs, real estate commission, inspection, expenses etc if you use the full 20%? So unless your house appreciates by some significant amount, you might come out with enough to put down for a new home. I also worry about prices sky rocketing further with this program or at least not coming down at all. Maybe I'm being too pessimistic. My GF and I combined are around 200% AMI 800+ credit scores, so I'm thinking we won't qualify regardless
I covered this example in my other video on this. home goes up $100k in value you pay back the state the original loan + another 20K, you keep 80k + whatever principal you've paid down on the loan.
funds are limited so maybe 2000 families will use this out of the over 45k SFR's listed in just SoCal alone, so a drop in the bucket as far as having any real impact on home prices.
So if I am matching right. If the purchase is 1 million, the government covers 200k and the house appreciates to 1.2 million. You owe the government 50k?
@@PC-qe4rl yes 👍
Hi Canton! Unfortunately I missed out on the Dream for All as well as the Forgivable Equity Builder program which I qualified for. Do you think there will be another similar DPA loan program released this year? They were too good to be true.
I know! The demand was insane. I’m not super confident that we’ll see more funds for dream for all for at least another year.
@CatonDelRosario Thank you for the insight!
@@SonnyDLight I also missed out on both programs. It could be a blessing. 🤷🏾♀️. The programs are r for everyone and you must read the fine print.
Will i still qualify if i have the title of a home under my name since 2019. But ive never bought a home?
Hi where did you find the information on being able to refinance once for your primary loan (80%)?
CalHFA has the lender handbook published on their website
@CatonDelRosario is it true that you must be at the same job for 2 years or longer in order to qualify?
Not at all! You have to be in the same line of work for at least two years but as long as it’s the same kind of work you’ve been doing for a long time, you can be on your new job for as little as a month!
That’s so great to hear I have been told differently and thought I wouldn’t be able to apply thank you so much for clarifying that, your channel is extremely helpful!
@orelmor you’re very welcome! Feel free to schedule a call with my team we’re glad to help! You can schedule a time to chat on my calendar here: calendly.com/catondelrosario/consult
So, if I understand this right, the shared appreciation is never removed from the property, even if you do the one-time ReFi and pay back the original 20% down payment loan. No matter what, they will get 20% (25%?) of the appreciation upon some kind of title change or 2nd ReFi.
Correct, since the loan they give you for the 20% down is a 0% silent second (no monthly payments required), the way they make money and recycle funds is thru the shared appreciation feature.
Hi Caton. Thank you for the video. 30% max downpayment? why?
Honestly not sure! That’s just their guideline for the program.
Hi Caton, thank you for this video. When using this program, is there a point origination fee required? My lender is saying all CALFHA loans require 2 points on the loan?
Pretty much every lender charges a standard 2% for CalHFA so that isn’t out of the ordinary
@@CatonDelRosario ouch. Expensive.
2% of the loan for 20% of the price. You can use up to 5% of the 20% towards closing costs though
I applied yesterday. Any idea how long it will take to hear back?
Working on apps first in first out but I should have anything from yesterday done today :)
Can you use it for brand new construction homes
Yes if it’s move in ready. Otherwise if it’s going to take time to build you might miss out because funds can only be reserved for 40 days once you’re under contract
hi! thanks for making this video! I had a question; what happens if you pay off the house? does the state come knocking asking for their loan back or is this only payed back if the house is sold or refinanced? Thanks!
Hi! In the event the mortgage is paid off it would trigger the repayment clause. How they know or how they will come collect is an unknown at this point though
Applied for this today 🙏🏽🤞🏽
What if I just want to buy and hold the property and just lease it out after the 12 month requirement?
That should be fine as long as you owner occupy those first 12 mo
One question, what if house loses value instead of gaining?
At a minimum CalHFA will claw back the original principle so there would be no share in your losses. Best advice would be to not sell in that situation if it can be avoided
Thanks for replying. One more question. What if housing market crashes and buyer gives up house to bank? @@CatonDelRosario
Would be a short sale most likely.
If I plan to have a co-borrower on my mortgage loan, will I still qualify for this Dream For All loan?
As long as they meet the same requirements
If u refinance, let’s say at 4% , yrs later . Do u still have to pay to cal aid 20% plus the 20% equity .. there’s no way around paying back the state loan down payment & appreciation
You’ve got a one time refi without paying the state back.
The more subsidies you get the higher prices go up. It's simple.
They’ve been on a slow creep up last few weeks even before this program
So if I already have close to 20% saved for down payment, i can still get 20% loan amount from this program plus my down payment,?
Yes
@@CatonDelRosario i hope the funds don't run out before I can apply. Thanks for the video.
@@XenomorphLV426 let’s get your app in my team will reach out. calendly.com/catondelrosario/dream-for-all
Question -
If for example, I can afford a 50% down payment on my own, am I still able to use the 20% from this program so essentially my down payment is 70%?
In one of your replies you mentioned that since the LTV min is 70%, we would only be able to contribute 10% as down payment (10% + 20% from program), and in another reply you mentioned that if someone had 20% down payment they can combine it so it becomes 40%, but doesn't that exceed the 70% limit because in this case it'd be 60% LTV? Or am I misunderstanding LTV/this program altogether? So in my example case if I'm already able to put in a 50% down payment would I still qualify for this program, and would it be beneficial or not to use it?
70% is the “minimum” so the Lowest you could go so max down you could add on top of the 20% would be 30%
So you could do 40% of your own + 10% of the state’s funds and owe less to them in the future
@@CatonDelRosario
Sorry I'm still not understanding fully...
1. When you said "70% is the “minimum” so the Lowest you could go so max down you could add on top of the 20% would be 30%", do you mean 20% from the program, and 30% from my own cash, meaning 50% down payment total? Or do you mean 20% from state funds + 10% of my own = 30%
2. And when you say "40% of my own + 10% of the state's funds", that means 50% down payment right? So in my original question if I already have enough cash for 50% of a down payment, would I still be able to use 20% state's fund for a total of 70% down payment?
So the max combined loan to value is 70% and of course you can only finance up to 100% of the price of a home.
So 70% combined loan to value only leaves room for 30% of your own down for a 100% purchase price
Thanks for the info! Do you know how this would apply to new self employed borrowers? We made around $130k in 2021 and $200k in 2022. Would our income qualify - we are in Riverside-?
I believe income limit in riverside is $178k but we use bottom line not top line when qualifying for SE
What if you have mortgage lenders and/or real estate agents that aren't very pro down payment assistance? I've asked lenders and agents about down payment assistance and they won't say anything and they'll avoid answering the questions.
Then you schedule a call with me and I’ll get you with a realtor that cares!
I have a question. When I finish the 30 year loan do I have to pay them back the 20% they paid for the down payment.
Yes
Hey I'd love to get on a call with you. I'm in the Joshua Tree area and found a new construction single family home I want to buy. I want to know if this would be a good fit and also had some questions about adding more to the downpayment.
Send me an email! caton@amnetmtg.com
Utah seems to continue to defy many of the US Trends. We have many from California, even Winters, California, including myself moving to Utah. Why do you think so many people are leaving California to come to Utah?
Cost of living is up there I’m sure. CA Ain’t cheap and ain’t for everyone so I get that
Isn't house for sale inventory is low?
How do I enroll into this program? Can I enroll into this program if I'm yet to finalize on buying a house?
Are you already under contract on a home?
@@CatonDelRosario No I'm not, first home.
Click the link in the description to start an application or go here:
Here’s a link for you to start your loan questionnaire! caton.floify.com
Hi how many days does it take to close? I am hearing 45-60 days.... this would make it hard for the seller to want to take our offer from this program :(, any thoughts?
We’re getting them done in 30
@CatonDelRosario great, I would love to hear your success story in the next 30 days.
But wouldn't you still be paying taxes on the full value of the home? So you're paying more tax on a more expensive house, yet you're missing out on the benefit of the full amount of appreciation
That’s correct. But you do get the full benefits of any tax benefits of ownership. Most of the people who used this bought forever homes anyways vs buying a starter home, selling, and then buying again. Essentially allowed them to skip a step they otherwise wouldn’t have afforded.
Is the 1.7% loan fee on the high balance loans by CalHFA in addition to the 2 points fee charged by the lender in this program? Thx
High balance fee as of today is 1.217% & is in addition to any other lender fees
@@CatonDelRosario So the lender fee is not a set 2 points and can vary? Im confused.
@@TEN-S60 the high balance fee of about 1.2% as of today is the fee to use a high balance loan amount. The 2% lender fee is set regardless of loan amount.
So if you were to use a high balance loan it would be the 2% lender fee PLUS the 1.217% high balance fee
What if I already have enough for a 20% down payment (but no a high enough salary to obtain the house I want)- can I still get the California dream loan?
Sure! You might even be able to use that 20% + this to get you there
So i can use this 20% program and pay 20% out my pocket to make a 40% down payment?
Yes
Using the program now, just put an offer on a house. Do I need to take the $99 course now or wait for the offer to be accepted?
I'm getting ready to put in an offer myself and was wondering the same thing. If I need to take the course I want to do it sooner rather than later to be safe because we need a house ASAP.
You should do it sooner than later since there’s a 5 day turn time to get you your certificate.
See my reply! Best to do it sooner!
@@CatonDelRosarioThank you so so much for the advice!
You bet! If you still need a lender to help you I’m here to help!
Can you buy a new build house with this program ?
Is there a max amount of money they will loan for down payment?
Depends on the county
Are there restrictions on purchase of town home or condo?
Must meet Fannie Mae guidelines so the HOA’s budget has to be solid as well as not having any outstanding litigation against it.
This program just got a LOT better but will the funds last? 😅
I hope they last. Just contacted a lender via email at 3am in the morning 😄 fingers crossed
If they don’t call back I’m your guy!
Heres a question. What if I buy a $400k home and refinance in x amount of years when the home depreciates to $250k, would they still take 20% being that the home depreciated instead of apreaciated?
@@VIVACRISTOREY- yes that’s correct. But also you likely wouldn’t be able to refinance at that point depending on the balance of your existing mortgage.
So many unanswered what ifs here! From an real estate investment stand point. What if you want to use this loan to purchase an investment property that you live in. Once the property appreciates, can you do a cash out refi without triggering a payback? or can CalHFA add restrictions and rules on this down the road?
Do you mean buy it as a primary and then rent it out later?
Cash out refi would trigger the repayment of funds. The one time only refi would be for a lower rate only.
The extra disclosures they have for the shared equity funds are fairly cut and dry, so I don’t see how they could add any extra restrictions later down the road though.
@@CatonDelRosario Yes, do you have to remain the home as your primary residence or can you acquire the property and then move out and rent it.
@@samazonprime3057 first 12 months as your primary then you can move out and rent it if needed
1:45 @@CatonDelRosario Great video btw. Thank you!
There’s no principal payment on this - which is nuts. It’s literally free money.
Legit insane lol
Is own funds only can go up to 10% I heard 30% 😮
It’s 30% I’ve gotten clarification
Can Daca recipients apply for this program ??
Yes you can!
@@CatonDelRosario
Great thank you. Not a lot of lender know the answer
Thank you Caton ! It is true what you said ! Not a lot of lenders know about this program ! I applied through a lender officer and did both courses just waiting on the phone call to get the certificate .The only bad thing they are giving appointments until June !
@@claudiolevallois6638 email them and tell them you need the certificate to put an offer on a property. They will expedite
The minimum credit score applies to both applicants? My credit score is good but unfortunately my husband is below 680.
Correct for both
@@CatonDelRosario thanks for getting back to me! I think paying off some cards will help boost his score. Let’s hope the funds don’t run out too quickly!
Hey I saw that 660 is the minimum credit score for income at or below 80% AMI. Is this true? I'm from the southern California area.
You mentioned that the minimum loan to value is 70%. So to confirm, that means that someone couldn't actually come in with $0 down, even if they used the full 20% assistance towards the down payment? They would be required in this case to bring in 10%?
So it’s Combined Loan to Value so the minimum you could have is 70% the max is 105%. Because the assistance takes up 20% that means the lowest you could go on loan to value is 70% (50% first mortgage, 20% DPA, 30% own downpayment)
And max would be 105% (85% mortgage, 15% down payment assistance 5% closing costs)
Hope that makes sense!
@Caton Del Rosario - Millennial Mortgage Pro Thank you for clarifying. I heard it incorrectly the first time. I thought you meant that the minimum someone would need to come in with is 30% but I realized that you meant that the highest amount someone could down in total is essentially 30% of the value in combination with the dpa.
Question: How many points are you charging buyers to use this program?
@@michaelferl7992 the standard is a 2% fee
I heard that state ran out of fund.. is it true?
Yes the program is paused for the foreseeable future! I will keep you all up to date on what’s next for the program as it will eventually be a revolving door of funds for home buyers!
It varies in the counties.. I’m applying now because there’s still funding in my county
@SLOWVERT funding won’t be back til 2024 but some counties have a similar program.
How do you sign up?
Here’s a link for you to start your loan questionnaire! catondelrosario.com/apply-now
Is it already available? Or when does it rolls out.
already out! book a call and apply in the description!
Do you see a real risk over the long term of not being able to refinance more than once compared with the cost savings of this program?
possibly, but i think that's only if people jump the gun. my personal bench mark would be getting to under 5% but it depends on the person's unique financial situation.
True. But rates getting to the 2’s was an anomaly anyways. Sweet for those who could though but rates in the 4’s are honestly great over the past decade
Does CALHFA applies with a VA Loan?
Unfortunately not with this program
Can this program be used on any SFH regardless of cost? Is almost impossible to find a decent house in a good area in LA for under a million.
In LA this can go up to $1.35M if just using the 20% down and not adding any of your own money to the down payment! Of course you still have to qualify for the mortgage. I’ve got a couple buyers using it at that exact price point right now.
Why aren’t you able to add any of your own money to the 20%?
@@amymitchell7996 you can. from what guidance I have you can add an additional 10% percent down of your own funds to the down payment, but it might be as much as 30% extra down for a total of 50% down! waiting on clarification.
How long will this program be available for?
@@amymitchell7996 no clue but it’s already going fast
So are there any hidden fees or extra interest rates for using this program? Also, what happens if there no appreciation on the home. What happens then?
No “hidden” fees but closing costs total about 3-4% of the purchase price.
At a minimum the state will take back the amount they lent you for your down payment even if the home goes down in value
@@CatonDelRosario Thank you. That's good to know :)
Can I add money down above the 20%?
Yes up to 30% of your own funds
Would you be able to apply this if wanting to purchase a duplex?
1 unit only so single family or condo. No multi fam but you could buy a SFR with an ADU built on it.
Hi Caton, I'm interested in a newly constructed home that will finish building in November 2023. I want to put in an offer right now, but can CalHFA funds be reserved to close the contract by then? I'm concerned that I'll lose the % down for reservations/escrow if CalHFA only applies to homes that are ready to move in right now. I'm still waiting on my loan officer to confirm that detail. Hope you have insights in this too! Thanks!
Hi Autumn!
Unfortunately funds are first come first serve so you’ll need to be under contract on something that will close ASAP. November is a really long time out and it’s more than likely funds will be fully spent by then.
I would recommend going now! Also, having an LO who responds fast and knows their stuff is KEY to a great buying experience. Let me know if you’d ever like a second opinion, I’m more than happy to help!
@@CatonDelRosario Darn! Thanks for the quick reply. I'll definitely reach out if I have any further questions.
You’re welcome! My email is caton@amnetmtg.com if you have any more specific questions!
can I take out a loan to pay for the dream for all loan after30 years?
Yes that’s most likely what people will end up doing.
is the income limit per person or per couple (combined)?
Combined! But if one person causes it to exceed they can be left off of the loan
Could really use your help. I’m trying to buy a home and seems like every major lender I speak to has no idea of this program and no idea if I qualify and doesn’t seem to approve the loan.
What should I do to find a lender and is there still a way to use a major lender?
Most big banks don’t do this program you’ll need to work with a smaller local lender. Is there a specific reason you want to use a major lender?
Find a qualified CALHFA lender. They know about this DFA program.
The income limit says June 6th 2022. Does this mean your annual income has to be lower than this number before June 6th 2022. The reason I'm asking is in 2022 my income exceeded this limit however I was making way less in 2021. I wonder if I still qualify?
No, just the date the limits were published
@@CatonDelRosario Ah thank you! So how would they know what my June 2022 income was? Do I just submit my W2 for 2021? Thanks again!
Sorry to clarify, the income is based of whatever your current income is today
Great video, thanks!
You're welcome!
What do you think? This loan program vs VA Loan?
Strictly payment speaking this is cheaper.
Long term? VA loan since you’d keep the equity & have better refinance options.
Thank you! Your opinion has made me towards more to VA since I'm planning to purchase a multifamily unit in SoCal area!
@@Ace-ht1is awesome! We do VA loans too, so feel free to reach out! calendly.com/catondelrosario/consult