RES 98115 - Laserfiche WebLink

EXHIBIT A: THE CITY OF ISL£ASANTON California Housing Loan Insurance Fund (CaHLIF) Home Loan Program Guidelines PROGRAM SUMMARY: $200,000 initial pledge from City Lower Income Housing Fund to create pledge pool (with a match of $100,000 from CHFA). Maximum 97% loan to value ratio (3% minimum down payment required). · Maximum annual income cannot exceed 100% of area median income according to household size (currently $63,300 for a family of four; 1/98); adjusted annually based on HUD median income for Alameda-Contra Costa county area. · Priority for "low income" households (80% of median; currently $50,650 maximum annual incotne for a household of four; 1/98). Eligibility. is restricted to first time, owner-occupant home buyers. · Program is subject to the City's priority and preference system. · Loans may be applied to the purchase of existing (resale) or new homes located within the City of Pleasanton. Introduction The purpose of the California Housing Loan Insurance Fund (CaHLIF) home loan program is a) to assist income-eligible households with the purchase of an affordable home, b) to provide affordability at fair market value through a "market driven" lending program, and c) to join with the California Housing Finance Agency (CHFA) to create a "pledge pool" of funds which provide a 3% reserve fund for home loans originated within the City of Pleasanton. Public funds from the City are blended with funds from CHFA to create the pledge pool, referred to as the California Housing Loan Insurance Fund (CaHLIF). The pledge pool in turn enables the issuance of 97% first mortgage loans which require a down payment of only 3%. For every $2,000 pledged by the City, CHFA will pledge $1,000 to the fund. The funds in the pledge pool do not go directly toward funding any loans. Rather, the funds reside in a trust account and are available to cover any extraordinary losses incurred through the