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 (CalHFA) is the correct answer because it is specifically designed to provide both below-market interest rates AND down payment assistance to qualified low-to-moderate income borrowers, which precisely matches Heather's situation as described in the question. CalHFA's MyHome Assistance Program, for example, provides a deferred-payment junior loan for down payment and/or closing costs, combined with a CalHFA first mortgage at a subsidized interest rate. No other option listed provides both of these benefits simultaneously to a single mother who does not have military service history.
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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.
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