A California buyer is considering a CalHFA FHA loan versus a standard FHA loan from a private lender. What is a key advantage of using CalHFA as the first mortgage lender?
Correct Answer
D) CalHFA offers access to down payment assistance programs that pair with their first mortgage
A key advantage of using CalHFA is that their first mortgage products can be combined with CalHFA's down payment assistance programs (such as MyHome Assistance and Zero Interest Program), which provide subordinate loans to help cover down payment and closing costs.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
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