Agent Lisa is working with a first-time homebuyer in Sacramento who earns $65,000 per year and has limited savings. The buyer wants to purchase a home priced at $350,000. Lisa recommends exploring CalHFA programs. Which feature is characteristic of CalHFA first-time buyer programs?
Correct Answer
A) CalHFA provides subordinate loans for down payment assistance that may be deferred or forgiven
CalHFA (California Housing Finance Agency) offers subordinate loans for down payment and closing cost assistance. Programs like MyHome Assistance provide deferred-payment subordinate loans that can help cover down payment requirements. Some CalHFA programs include forgivable features over time.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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