CalHFA’s On Demand Training: CalHFA VA Loan Program

CalHFA’s On Demand Training: CalHFA VA Loan Program


CalHFA presents on-demand
lender training, VA first mortgage programs. [MUSIC PLAYING] Hello, and welcome to
CalHFA’s lender training. My name is Molly Ellis. Our focus in this video is
our VA first mortgage program basic guidelines and the best
ways to layer closing-cost assistance to
benefit your veteran. First, let’s talk about
our CalHFA VA program. It’s a VA first mortgage with
an affordable interest rate. It has a maximum loan-to-value
of 100% and a maximum combined loan-to-value of 105%. The minimum credit
score is 640, and the maximum debt-to-income
ratio is 45%. Technically, CalHFA doesn’t
have a loan amount limit. However, we do charge
a high-balance fee for any loan over $484,350. This would only be
applicable if the VA loan limit in the county
the property is located allows you to
exceed the $484,000. Otherwise, you’d have to
adhere to the VA loan limit. For pricing and for
the high-balance fees, please check out the rate
page on CalHFA’s website. A unique feature of
CalHFA’s VA program is that it can be
used for a borrower, whether or not they are
first-time homebuyers. What makes our program so great
is the closing-cost assistance. Layer the CalHFA VA program with
our MyHome Assistance Program to allow the veteran to move
in with little or no cash out-of-pocket. MyHome is 3 and 1/2% of the
sales price or the appraised value, whichever is less,
which could cover most of the veteran’s closing costs. Or, if the borrower works for
a California public school, they can use CalHFA’s School
Teacher and Employee Assistance Program. This loan will get them up to
4% in closing-cost assistance. You can use only one– either MyHome, or
the School Program. Either way, the
interest rate is 3%– simple interest, with
deferred payments. Please do not calculate a
payment into the borrower’s DTI, as it’s not required. Now, when we add MyHome
or the School Program to the CalHFA VA
loan, the veteran does need to be a
first-time homebuyer. Just remember, the definition
of a first-time homebuyer is someone who has not owned and
occupied a principal residence in just the past three years. Both must be used with
the CalHFA first mortgage, and must be in
second lien position. When you’re working with
a first-time homebuyer, homebuyer education is required
for at least one borrower on the loan. CalHFA does not allow for a
manually underwritten VA loan. Well, that covers
our VA first mortgage program and the
mortgage assistance that can be layered with it. Now, let’s move on to property
requirements and maximum lender origination fees. The property requirements
for these programs, for the most part,
follow VA guidelines. Also, make sure you adhere
to any lender or investor overlays. The sales price of
the property must be within CalHFA’s published
sales-price limits. A one-year home
warranty is required for first-time
homebuyers, unless they’re purchasing new construction. The property cannot
exceed five acres, and manufactured
homes are not allowed. If the property
meets VA guidelines for an accessory-dwelling
unit then, as allowed, you can use the rental income. Now let’s talk
about lender fees. First, you must be a
CalHFA-approved lender. Even though CalHFA usually
caps the lender fees at 3%, on a VA loan, you’ll
need to follow VA requirements, including
allowable and non-allowable fees. Our rates are at par, so you
have to charge origination on these loans. But with the
closing-cost assistance from MyHome or the
School Program, the borrower will
still have very little out-of-pocket expenses. If VA allows, you can charge
an additional processing fee of $250 for MyHome
or the School Program. You may not charge
any additional lender fees– like origination
fee, per diem interest, or per diem interest–
on the subordinate loan. We want to help make this easy,
so we have provided some tools to help you be successful
when doing loans with CalHFA programs. The loan program handbooks
for each one of our programs includes all the details
about the program in one easy handbook. The loan program matrix
provides a quick view of terms and requirements
for all CalHFA programs. The very popular loan
scenario calculator will help you calculate
loan amounts and print results for your borrower. You can find these tools
under Lenders/Real Estate Agents on our website. Click the Loan Program Handbooks
tab for all the program handbooks, that calculator
icon for the loan scenario calculator, and Tools,
Affidavits, and Docs tab for the specific
loan program matrix. Now, let’s look at the
fun stuff before we close. Our single family
lender-training team offers in-person training
classes every month across the state. Attend a three-and-a-half hour
workshop to learn all about CalHFA’s programs. Classes are announced
each month on our website and through our monthly
eNews announcements. To sign up for a class,
visit CalHFA’s website, choose the Training Calendar
link under Lenders/Real Estate Agents, and sign up for a class
that will work best for you. We also provide customized
marketing materials that can be downloaded
from our website by clicking the Lenders/Real
Estate Agents section, choose the Loan Officers
tab, then choose Sales Tools and Marketing Materials link. For any questions you may have,
contact Single Family Lending at 916-326-8033. Or you can email our
lender services division at [email protected] Thank you so much for your time. Now, get out there and help
more California veterans have a place to call home. [MUSIC PLAYING]