A buyer asks their agent how CalHFA income limits are determined and whether those limits differ depending on where in California the buyer is purchasing. Which of the following most accurately describes how CalHFA income eligibility works?
Correct Answer
A) CalHFA income limits are set county by county based on area median income and also vary by household size
CalHFA income limits are determined by the area median income (AMI) for the county in which the subject property is located and are further adjusted by household size. Because median incomes vary significantly across California — from rural inland counties to high-cost coastal metros — the income ceilings differ from county to county. Agents must verify the applicable limit for the specific county and household configuration of each buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
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