Heather, a single mother, is able to get down payment assistance as well as a below market rate of interest on her mortgage. What type of mortgage did she receive?
Correct Answer
D) California Housing Financing Agency (CalHFA).
The California Housing Finance Agency is the program that delivers both benefits together: a CalHFA first mortgage at a below-market rate paired with a deferred-payment junior loan, such as its MyHome Assistance Program, to cover the down payment and closing costs. Heather qualifies on household income rather than service history, so the two veteran-only programs are unavailable to her. An FHA-insured loan by itself supplies neither benefit, because the interest rate is set by the lender at market and any down payment help has to come from a separate program layered on top. One agency subsidizing the rate and funding the down payment at the same time points to CalHFA.
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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.
More Financing Questions
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