August 2013 the State of California Housing Finance Agency (CalHFA) has announced a new round of affordable lending programs designed to help well-prepared low and moderate income families become California homeowners.
New and old programs have been designed to give first time homebuyers access to programs that have special provisions that promote sustainable homeownership, responsible underwriting and a minimal required investment.

New Qualifying Guidelines

Consistent with it’s effort to create sustainable homeownership, CalHFA has published new qualifying guidelines for it’s programs.
Updated underwriting guidelines are consistent with QM (qualified mortgage) Rules.
While some of these guidelines are more restrictive that programs of the past, the increased attention to financial stability allows CalHFA to offer some pretty amazing programs.
Updated Eligibility Changes to CalHFA Loans:

• Updated income limits – increased in many Counties
• 2 Year Home Warranty required unless the purchase is new construction.
• 43% Debt to Income (DTI) Limit
• 8 Hour Homeowner Education Course required
• Minimum Required Investment
  • Credit Score 640-679 = $1,500
  • Credit Score 680+ = $1,000
  • Required borrower contibution can be a gift
• 103% Maximum Combined Loan to Value including Assistance Programs
• Minimum Credit Score 640
• Non Occupying Co-Signers allowed – income does not count toward limits