RES 98115 - Laserfiche WebLink

program (e.g., loan defaults). The existence of the pledge pool enables CHFA to offer a loan proyam with conditions which are very favorable to home buyers. The sales price for homes purchased through a CaHLIF loan cannot exceed the maximum allowed under the FNMA (Fannie Mae) program. The City may combine "sleeping second" mortgage loans with CaHLIF assistance. CaHLIF loans are originated and processed by locally approved lenders. Level of City Funding The City will allocate an initial sum of $200,000 from the Lower Income Housing Fund as the City's contribution to the CaHLIF home loan program pledge pool. This amount will be matched by $100,000 from CHFA. This level of funding will enable approximately 80 individual loans (assuming an average loan size of about $200,000) and will provide a reasonably sized pilot program and will also allow a sufficient number of loans to make the commitment of funds and administration worthwhile. After an initial trial period, the City may allocate additional funds toward the program periodically (e.g., on an annual basis) to increase me size of the pledge pool if the program proves successful and if CHFA is willing to provide a further match. Maximum Loan Amount The primary purpose of the CaHLIF program is to facilitate home ownership for households in which the buyer's available funds and capacity for financing are insufficient to enable the purchase of a home. The maximum amount of each individual loan will be determined by the buyer's income and conformance with eligibility and underwriting criteria established by CHFA. Target Households CHFA has established specific eligibility criteria for buyers participating in the CaHLIF program. Specifically, buyers must: 1) be first-time home buyers; 2) meet underwriting ratios of 33%/38%; 3) undergo special CHFA-sponsored home buyer counseling; and 4) have incomes not exceeding 120% of the area median ("moderate income"). In addition, the City may establish its own specific requirements provided that they are consistent with CHFA's criteria. Eligibility for assistance through the City of Pleasanton's CaHLIF program shall be limited to "moderate income" households whose gross annual income does not exceed 100% of the median income level for the Alameda-Contra Costa County area according to household size as adjusted annually by the U.S. Department of Housing and Urban Development (HUD). The current median income for a household of four persons is $63,300 (HUD; 1/98). If