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REALTOR®: Opportunities Available for First-time Homebuyers, CalHFA Official Tells Real Estate Agents

Wednesday, February 20, 2008

A California Housing Finance Agency (CalHFA) official joined Realtors in fending off negative news about the housing market. He said prefers to look at the positive side, and focus on opportunities which are still very much available for homebuyers, particularly first-time homebuyers.

Eric Johnson, a CalHFA marketing specialist in charge of emerging markets outreach programs in the Bay Area, recently told members of the Filipino American Real Estate Professionals Association that home prices continue to fall and interest rates are still very low. When these positive forces converge, it's a good time to purchase a home.

"It's actually a perfect time for homebuyers, even first-time homebuyers. It may take a little more work, but the opportunities are there," said Johnson.

CalHFA is a state agency that provides low interest financing and programs that create affordable housing opportunities for individuals within specified income ranges. It's the agency's goal to assist first-time homebuyers in achieving the dream of homeownership.

CalHFA products include 30-year fixed rate loans, 40-year fixed rate loans and, even interest-only plus loans. Johnson announced what distinguishes the CalHFA loan from other interest-only loan programs is mortgage payments are essentially discounted the first five years and the interest rate is fixed for the entire duration of the 35-year mortgage, so borrowers face no surprises when making monthly payments. With the help of Carolyn Mountain, a CalHFA specialist with Countrywide Home Loans, Johnson explained to the real estate agents how this loan product can be combined with CalHFA down payment assistance programs and other government grants/loans, enabling homebuyers to shave hundreds of dollars off their monthly mortgage payments.

First-time homebuyers in Santa Clara County may qualify for a loan as long as they earn no more than $118,704 for a one-or two-person household or a maximum of $136,510 for a family of three or more. The price of re-sale homes cannot exceed $673,953 and new homes $595,086.
Johnson announced, "We (CalHFA) are one of the last bastions of 100 percent financing."
Also, unlike many banks which now require borrowers to have at least a 720 or higher credit score, Johnson disclosed CalHFA only requires a 620 credit score.

"We never loosened our standards, so we never had to tighten them up. Last year was our lowest default and foreclosure rate," said Johnson. "It's easy to get a loan, but it's difficult to keep and maintain that loan. We want to make sure our clients maintain their loans."

"It's a tough time for everyone, but there's a positive side to the equation," added Johnson. "You just need to let your clients know about these opportunities."

FAREPA President Robert Resuello said, "Eric Johnson gave our members valuable information on how to help first-time homebuyers in today's real estate market qualify for a mortgage loan, along with many ways they can get help through various down payment assistance programs."

Tess Crescini, a member of the Silicon Valley Association of Realtors and past president and co-founder of FAREPA, said she is a big fan of CalHFA. "I have four transactions in escrow right now because of CalHFA," she said. "It's the best kept loan secret for first-time homebuyers. I would encourage all Realtors to learn more about CalHFA programs because their clients could benefit from their down payment assistance programs."

To learn more about CalHFA products and programs, visit www.calhfa.com


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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