Message For First Time Homebuyers

"There has never been a better time to buy a home than now! We have low interest rates (cheap money), we have job stability (low unemployment rates & tech jobs), we have high levels of home inventory (more sellers than buyers). First time homebuyers don't have a home to sell, and so they won't take a hit on the sell side. As a result they are in the DRIVER'S SEAT for the coming months as we bottom out and the short sales and foreclosures get rinsed out of the market. The smart First Time Buyers are those who take advantage of available BMR Programs, Local & State Housing Assistance, Special Grants, and Federal Loan Programs. But in order take action you must work with professionals who can guide you through this homebuying maze!"

-Daniel Pizano, San Jose Real Estate Expert daniel.pizano@cbnorcal.com

UNITED STATES GOVERNMENT

SPECIAL FEDERAL PROGRAMS

FIRST TIME HOMEBUYERS PROGRAMS

GOVERNMENT PROGRAMS

FEDERALLY SPONSERED PROGRAMS

HUD BACKED GRANTS & LOAN

HOUSING AND URBAN DEVELOPMENT

HOUSING COMMUNITY DEVELOPMENT

CONGRESS MANDATED PROGRAMS

STATE OF CALIFORNIA

Homeownership Assistance in California
Information
HUD
FHA loans
FHA lenders
American Dream Downpayment Initiative
Links
For people with disabilities
Loans for veterans

Need help buying a home? You may qualify for one of these programs

Statewide and Regional Programs

Call Daniel Pizano, Realtor

408-355-1557 or 408-460-8401

STATE MUNICIPAL PROGRAMS

LOCAL GOVERNMENT PROGRAMS

First Time Homebuyers

City Sponsored Progams

Local Government Programs

MORE INFORMATION

ON VARIOUS GOVERNMENT LOANS AVAILABLE

Adjustable Rate Mortgage Insurance (HUD/FHA)

General Program Requirements
In order to qualify for this benefit program, you must be a current or prospective homeowner.

Loan Terms
Loan terms for FHA-insured loans are determined by the lenders who process the loans.

Application Process

For more information, see the Program Contact Information below.

Program Contact Information
To read more about this program, go to:
http://www.hud.gov/offices/hsg/sfh/ins/251--df.cfm

To obtain a FHA-insured mortgage, look in your local Yellow Pages under "Mortgages" or contact a FHA-approved lender:
http://www.hud.gov/local/index.cfm

To read more about the home buying process, please visit:
http://www.hud.gov/buying/index.cfm

Managing Agency
U.S. Department of Housing and Urban Development
http://www.hud.gov/



Basic FHA Loan (Home Mortgage Insurance - HUD/FHA)

Program Description
This program can help individuals buy a single family home. While HUD does not lend money directly to buyers to purchase a home, FHA-approved lenders make loans through a number of FHA-insurance programs.

General Program Requirements
In order to qualify for this benefit program, you must be a current or prospective homeowner who is refinancing an existing mortgage.

Loan Terms
Loan terms for FHA-insured loans are determined by the lenders who process the loans.

Application Process
For more information, see the Program Contact Information below.

Program Contact Information
To read more about this program, go to:
http://www.hud.gov/offices/hsg/sfh/ins/251--df.cfm

To obtain a FHA-insured mortgage, look in your local Yellow Pages under "Mortgages" or contact a FHA-approved lender:
http://www.hud.gov/local/index.cfm

To read more about the home buying process, please visit:
http://www.hud.gov/buying/index.cfm

Managing Agency
U.S. Department of Housing and Urban Development
http://www.hud.gov

Condominium Unit Purchase (Mortgage Insurance - HUD/FHA)

Program Description
This program can help individuals buy a home in a condominium development that will be their place of residence. While HUD does not lend money directly to buyers to purchase a home, FHA-approved lenders make loans through a number of FHA-insurance programs.

General Program Requirements
In order to qualify for this benefit program, you must be a current or prospective homeowner.

Loan Terms
Market Interest Rate, with an Upfront "Funding Fee" and no Pre-payment penalties. Maximum Loan Length 30 years. Maximum Loan Amount based on area loan limit. Monthly Payment Frequency.

Application Process
For more information, see the Program Contact Information below.

Program Contact Information
To read more about this program, go to:
http://www.hud.gov/offices/hsg/sfh/ins/251--df.cfm

To read more about the home buying process, please visit:
http://www.hud.gov/buying/index.cfm

To obtain a FHA-insured mortgage, look in your local Yellow Pages under "Mortgages" or contact a FHA-approved lender:
http://www.hud.gov/ll/code/llplcrit.html

Managing Agency
U.S. Department of Housing and Urban Development
http://www.hud.gov/



Home and Property Disaster Loans
Program Description
If you are in a declared disaster area and are the victim of a disaster, you may be eligible for financial assistance from the U.S. Small Business Administration - even if you don't own a business. As a homeowner, renter and/or personal-property owner, you may apply to the SBA for a loan to help you recover from a disaster.

Insurance Proceeds: If you have insurance coverage on your personal property/home, the amount you will receive from the insurance company will be deducted from the total damage to your property in order to determine the amount for which you are eligible to apply to the SBA.

General Program Requirements
To be eligible for a Disaster Loan, an individual must be located in a Declared Disaster Area. Insurance proceeds, or any other type of compensation must be either first used or pledged to the loan. This prevents duplication of benefits and allows SBA to reach more disaster victims.

Loan Terms
The interest rate is no more than 8% for applicants that can obtain credit elsewhere; no more than 4% for applicants that can not get credit elsewhere.

The length of the loan is 30 years, with a maximum of $200,000 for Real Estate; $40,000 for Personal Property.

Application Process
For more information, see the Program Contact Information below.

Program Contact Information
For more information about this program, please visit:
http://www.sba.gov/services/disasterassistance/homeownersrenters/index.html

Managing Agency
U.S. Small Business Administration

www.sba.gov



Indian Home Loan Guarantee Program (Section 184)

Program Description
This program provides home ownership opportunities to Native Americans, Tribes, Tribally Designated Housing Entities (TDHEs), and Indian Housing Authorities on Indian land, through a guaranteed mortgage loan program available through private financial institutions.

General Program Requirements
In order to qualify for this benefit program, you must be a Native American/American Indian in the process of buying a home that will be your primary residence. You or your family member(s) must also be enrolled in a federally recognized American Indian tribe or Alaskan Native village.

Loan Terms
Fixed Rate Financing with market rate of interest. Length of Loan is 30 years or less. Payments are made monthly. The maximum loan amount is 150% of the FHA lending limits for the area. There are no prepayment penalties.

Application Process
For more information, see the Program Contact Information below.

Program Contact Information
For more information about this program and how to apply, visit:

http://www.hud.gov/offices/pih/ih/homeownership/184/

You may contact the program office directly:

Paul Jurkowski
Office of Loan Guarantee
ONAP, Department of Housing and Urban Development
1999 Broadway, Suite 3390
Denver, CO 80202
Paul_S._Jurkowski@hud.gov

You may also call the program office at:
800-561-5913

Managing Agency
U.S. Department of Housing and Urban Development
http://www.hud.gov/



Manufactured Home Loan Insurance (HUD/FHA)
Program Description
The Manufactured Home Loan Insurance program makes reasonable financing possible for purchasing manufactured homes.

General Program Requirements
In order to qualify for this benefit program, you must be buying a manufactured home that will serve as a primary residence.

Loan Terms
Market Interest Rate with variable Upfront Fees and no Pre-payment penalties. Maximum Loan Length 20-25 years. Maximum Loan Amount for Home/Lot $64,800. Monthly Payment Frequency.

Application Process
For more information, see the Program Contact Information below.

Program Contact Information
To read more about this program, go to:

http://www.hud.gov/offices/hsg/sfh/title/manuf14.cfm

To obtain a FHA-insured mortgage, look in your local Yellow Pages under "Mortgages" or contact a FHA-approved lender:

http://www.hud.gov/ll/code/llplcrit.html

To read more about the home buying process, please visit:

http://www.hud.gov/buying/index.cfm

Managing Agency
U.S. Department of Housing and Urban Development
http://www.hud.gov/



Property Improvement Loan Insurance (HUD/FHA)
Program Description
The Federal Housing Administration (FHA) makes it easier for consumers to obtain affordable home improvement loans by insuring loans made by private lenders to improve properties that meet certain requirements. This is one of HUD's most frequently used loan insurance products--by the end of fiscal year (FY) 1996, it had insured almost 35 million loans totaling $43.6 billion.

General Program Requirements
Eligible borrowers include the owner of the property to be improved, the person leasing the property (provided that the lease will extend at least 6 months beyond the date when the loan must be repaid), or someone purchasing the property under a land installment contract.

Loan Terms
Market Interest rate with variable Upfront Fees and no Pre-payment penalties. Maximum Length of Loan 20 years. Maximum Loan Amount $25,000 for one property, up to $60,000 for multiple units. Monthly Payment Frequency.

Application Process
For more information, see the Program Contact Information below.

Program Contact Information
Contact HUD at 800-767-7468 for a program brochure #2651 and list of lenders.

For more information about this program, please visit:

http://www.hud.gov/offices/hsg/sfh/title/title-i.cfm

Managing Agency
U.S. Department of Housing and Urban Development
http://www.hud.gov/



Rehabilitation Mortgage Insurance (HUD/FHA)
Program Description
This program may help individuals finance the cost of purchasing and rehabilitating their new or existing home. While HUD does not lend money directly to buyers to purchase a home, FHA-approved lenders make loans through a number of FHA-insurance programs.

General Program Requirements
In order to qualify for this benefit program, you must be a current or prospective homeowner who is planning to repair or improve a residential structure that is more than one year old.

Loan Terms
Market Interest Rate, with variable Upfront Fees and no Pre-payment penalties. Maximum Loan Length 30 years. Maximum Loan Amount is based on area loan limit. Monthly Payment Frequency.

Application Process
For more information, see the Program Contact Information below.

Program Contact Information
To read more about this program, go to:

http://www.hud.gov/offices/hsg/sfh/203k/203k--df.cfm

For housing rehabilitation that does not require buying or refinancing the property, read:

http://www.hud.gov/offices/hsg/sfh/title/title-i.cfm

To obtain a FHA-insured mortgage, look in your local Yellow Pages under "Mortgages" or contact a FHA-approved lender:

http://www.hud.gov/ll/code/llplcrit.html

To read more about help for disaster victims, go to:

http://www.fema.gov

Managing Agency
U.S. Department of Housing and Urban Development
http://www.hud.gov/



Rural Disaster Housing Assistance
Program Description
To assist qualified lower income rural families to meet emergency assistance needs resulting from natural disaster to buy, build, rehabilitate, or improve dwellings in rural areas. Funds are only available to the extent that funds are not provided by the Federal Emergency Management Agency (FEMA). For the purpose of administering these funds, natural disaster will only include those areas identified by a Presidential declaration.
Direct loans may be used for construction, repair, or purchase of housing. Payment subsidy is available to eligible low and very low-income applicants. The term payment subsidy refers to either payment assistance or interest credit. A payment subsidy reduces the borrower's scheduled payment to an amount equal to what it would be if the note were amortized to as low as one percent. Payment subsidies are subject to recapture by the government when the borrower transfers title or ceases to occupy the property.

Applicants must be without adequate resources to obtain housing or related facilities. Applicants must be unable to secure the necessary credit from other sources at prevailing terms and conditions for residential financing.

General Program Requirements
Rural Disaster Loans are available in counties designated under a Presidential Disaster Declaration. These funds are made available to the extent that funds are not provided by Federal Emergency Management Agency (FEMA), Small Business Administration (SBA), or other agencies. Additionally, applicants must meet all eligibility requirements of Rural Development.

Loan Terms
Direct are repaid over 33 years or 38 years for applicants whose adjusted annual income does not exceed 60 percent of the area median income, if necessary to show repayment ability. Payment assistance is granted on direct loans to reduce the installment to an "effective interest rate" as low as one percent, depending on adjusted family income. Payment assistance is subject to recapture by the government when the customer no longer resides in the dwelling. There is no funding provided for deferred mortgage authority or loans for deferred mortgage assumptions.

Application Process
For more information, see the Program Contact Information below.

Program Contact Information
For more information about this program or to apply for assistance, contact your state's Rural Development field office using this office locator tool:

http://offices.sc.egov.usda.gov/locator/app

Interested applicants should contact their local USDA Rural Development field office for more information. To obtain contact information for the field office nearest you, visit:

http://www.rurdev.usda.gov/recd_map.html

For more information about Small Business Administration (SBA) programs that may be available visit:

http://www.sba.gov

For more information about Federal Emergency Management Agency (FEMA) programs that may be available visit:

http://www.fema.gov

Note: All applications for loans are handled at the local level. For help with an application, contact your Rural Development office at: http://www.rurdev.usda.gov/recd_map.html or your nearest office at:

http://offices.sc.egov.usda.gov/locator/app

Managing Agency
U.S. Department of Agriculture
http://www.usda.gov/



Rural Housing Loans

Program Description
Direct and guaranteed loans may be used to buy, build, or improve the applicant's permanent residence. New manufactured homes may be financed when they are on a permanent site, purchased from an approved dealer or contractor, and meet certain other requirements. Under very limited circumstances, homes may be re-financed with direct loans. Dwellings financed must be modest, decent, safe, and sanitary. The value of a home financed with a direct loan may not exceed the area limit. The property must be located in an eligible rural area. Assistance is available in the States, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of Northern Mariana's, and the Trust Territories of the Pacific Islands. Direct loans are made at the interest rate specified in RD Instruction 440.1, Exhibit B (available at http://www.rurdev.usda.gov/regs/regs/pdf/04401.pdf or in any Rural Development local office).

Guaranteed loans may be made to refinance either existing RHS Guaranteed Housing loans or RHS Section 502 Direct Housing loans. The interest rate is negotiated with the lender.

General Program Requirements
In order to qualify for this benefit program, applicants must have very low-, low- or moderate incomes. Very low-income is defined as below 50 percent of the area median income (AMI); low-income is between 50 and 80 percent of AMI; moderate income is below 115 percent of AMI. Families must be without adequate housing, but able to afford the housing payments, including principal, interest, taxes, and insurance (PITI). Qualifying repayment ratios are 29 percent for PITI to 41 percent for total debt. In addition, applicants must be unable to obtain credit elsewhere, yet have an acceptable credit history. You must also be a US citizen or permanent resident.

Loan Terms
Direct are repaid over 33 years or 38 years for applicants whose adjusted annual income does not exceed 60 percent of the area median income, if necessary to show repayment ability. Payment assistance is granted on direct loans to reduce the installment to an "effective interest rate" as low as one percent, depending on adjusted family income. Payment assistance is subject to recapture by the government when the customer no longer resides in the dwelling. There is no funding provided for deferred mortgage authority or loans for deferred mortgage assumptions.

Guaranteed loans are amortized over 30 years.

Application Process
For more information, see the Program Contact Information below.

Program Contact Information
For more information about the Guaranteed Loan program, visit:

http://www.rurdev.usda.gov/rhs/

For more information about the Direct Loan program, visit:

http://www.rurdev.usda.gov/rhs/

Interested applicants should contact their local USDA Rural Development field office for more information. To obtain contact information for the field office nearest you, visit:

http://www.rurdev.usda.gov/recd_map.html

All applications for loans and grants are handled at the local level. For help with an application, contact your Rural Development office at:
202-720-4323

Managing Agency
U.S. Department of Agriculture
http://www.usda.gov/


Rural Housing: Farm Labor Housing Loans and Grants

Program Description
The Farm Labor Housing Loan and Grant program provides capital financing for the development of housing for domestic farm laborers. Farm Labor Housing loans and grants are provided to buy, build, improve, or repair housing for farm laborers, including persons whose income in earned in aquaculture (fish and oyster farms) and those engaged in on-farm processing. Funds can be used to purchase a site or a leasehold interest in a site; to construct housing, day care facilities, or community rooms; to pay fees to purchase durable household furnishings; and to pay construction loan interest.

General Program Requirements
The Farm Labor Housing Loan and Grant program provides capital financing for the development of housing for domestic farm laborers. Loans are made to farmers, associations of farmers, family farm corporations, Indian tribes, nonprofit organizations, public agencies, and associations of farmworkers. Typically, loan applicants are unable to obtain credit elsewhere, but in some instances, farmers able to get credit elsewhere may obtain loans at a rate of interest based on the cost of federal borrowing. Grants are made to farmworker associations, nonprofit organizations, Indian tribes, and public agencies. Funds may be used in urban areas for nearby farm labor. (This is the only Rural Housing Service rural service area exception.)

Loan Terms
Loans are for 33 years at 1% interest. Grants may cover up to 90% of development costs. The balance may be a Farm Labor Housing Program loan.

Application Process
For more information, see the Program Contact Information below.

Program Contact Information
For more information about the Farm Labor Housing Loan and Grant program, visit:

http://www.rurdev.usda.gov/rhs/

To find out about availability of farm labor housing in your locality, contact your local Rural Development field office using this office locator tool:

http://www.rurdev.usda.gov/recd_map.html

Managing Agency
U.S. Department of Agriculture
http://www.usda.gov/



Rural Housing: Housing Repair Loans and Grants
Program Description
The Rural Housing Repair Loans and Grants program provides loans and grants to very low-income homeowners to repair, improve, modernize, or to remove health and safety hazards in their rural dwellings. Loans are arranged for up to 20 years at 1% interest. Grants may be arranged for recipients who are 62 years of age or older and can be used only to pay for repairs and improvements to remove health and safety hazards. Loan/grant combinations may be arranged for applicants who can repay part of the cost. Very low-income for this program is defined as below 50 percent of the area median income.

General Program Requirements
The Very Low-Income Housing Repair program provides loans and grants to very low-income homeowners to repair, improve, or modernize their dwellings or to remove health and safety hazards. Furthermore, you must be a US citizen or permanent resident who lives in a rural area.

Loan Terms
Loans of up to $20,000 and grants of up to $7,500 are available. Loans are for up to 20 years at 1 percent interest. A real estate mortgage is required for loans of $2,500 or more. Full title services are required for loans of $7,500 or more. Grants may be recaptured if the property is sold in less than three years. Loans and grants can be combined for up to $27,500 in assistance

Application Process
For more information, see the Program Contact Information below.

Program Contact Information
For more information about the housing repair loan program, visit:

http://www.rurdev.usda.gov/rhs/

If you are 62 years or older, you may qualify for a housing repair grant. For more information about this program, visit:

http://www.rurdev.usda.gov/rhs/

To apply for a loan or grant online go to: http://www.sc.egov.usda.gov, or you may contact your state's Rural Development field office using this office locator tool:

http://www.rurdev.usda.gov/recd_map.html

Managing Agency
U.S. Department of Agriculture
http://www.usda.gov/



VA - Home Loans - Interest Rate Reduction Refinancing Loan
Program Description

VA loan guaranties are made to service members, veterans, reservists and certain qualifying unmarried surviving spouses for the refinancing of a VA home loan.

General Program Requirements

You must have a current VA loan to be able to utilize the Interest Rate Reduction Refinancing Loan (IRRRL) program.

Loan Terms
The interest rate varies and the length of the loan cannot exceed 360 months. Payments are due monthly. No more than 2 points may be rolled into this loan plus allowable closing costs.

Application Process
For more information, see the Program Contact Information below.

Program Contact Information

For more information on this program, please visit:

http://www.homeloans.va.gov

You may contact a Regional Loan Center to discuss purchase and Refinancing issues:

http://www.homeloans.va.gov/RLCWEB.htm

Managing Agency
Veterans Benefits Administration (VBA)
http://www.vba.va.gov



VA - Home Loans - Specially Adapted Housing Direct Loan
Program Description

This loan program is a small “companion benefit” to VA’s Specially-Adapted Housing (SAH) Grant program. It’s rarely used, but it’s available if a an SAH-eligible veteran or service member should need it.

The goal of the SAH program—as a whole—is to provide a barrier-free living environment which affords the veteran or service member a level of independent living he or she might not otherwise enjoy.

The SAH grant itself can be used to build a specially-adapted home, buy a home that’s already adapted, or adapt an existing home; however, it’s currently limited to a maximum of $50,000. Depending on the scope of the SAH project, veterans or service members may need supplemental financing to pay for the difference between the total cost of the house and maximum grant amount.

This article is ONLY about the direct loan program available in conjunction with the SAH grant for veterans or service members who can’t get a VA-backed or conventional loan with a commercial lender.

Disabled veterans who receive VA’s specially-adapted housing grant may obtain either a standard VA-guaranteed or conventional loan from a commercial lender. If you were a grant recipient and you had difficulty getting a commercial VA-backed or conventional loan, VA might be able to provide a direct loan.

The maximum loan is $33,000. It’s possible that, if you need to use a VA or conventional loan, you can get supplemental financing from a commercial lender.

General Program Requirements

NOTE: This loan program is a companion benefit to VA’s Specially Adapted Housing (SAH) grant. It’s rarely used because a standard VA-guaranteed or conventional loan is ordinarily the best choice.

This article discusses only the direct loan program available in conjunction with the SAH grant. We’ll be adding an article on the Specially Adapted Housing grant program itself in the near future.

In order to qualify for this loan, you must have been determined eligible for VA’s SAH grant first. (This grant is available for veterans and service members who are so seriously disabled from service-related disabilities that they have significant mobility problems.)

You must also

Qualify for the regular VA Loan Guaranty program. (If you qualify for the SAH grant, you probably do qualify for the Loan Guaranty program.)
Have good credit and enough income to support the entire house payment.
Finally, you must have enough Loan Guaranty “entitlement” * to cover the loan.

*Entitlement—What is it? If you’re eligible for the Loan Guaranty program, then you are entitled to a certain amount of financial backing (or "guaranty") for a home loan. You might think of it like this: We set this money aside for you for the time when you’ll use our guaranty.

We call this money your "entitlement." It’s the money we will use as security for the lender.

Loan Terms
The direct loan is not a better deal than an ordinary mortgage; it’s just a fall-back option if you can’t get a commercial loan. You still have to qualify in terms of credit and income.

The maximum loan is $33,000. The interest rate will be based on current market rates. Maximum length of the loan is 360 months. Like most mortgages, payments are made monthly.

Application Process
For more information, see the Program Contact Information below.

Program Contact Information

For more information, please visit:

http://www.homeloans.va.gov/sah.htm

Managing Agency
Veterans Benefits Administration (VBA)
http://www.vba.va.gov

If you would like information about First Time Homebuyers Seminars or would like to meet with someone to go over your options . . .

Call Daniel Pizano 408.460.8401 or Email daniel.pizano@cbnorcal.com