It seems everyone can pursue the American dream, regardless of their financial situation. With the initiation of the HAF Grant Program, the California Association of REALTORS® (C.A.R.) is offering first-time purchasers up to $10,000 in grants to help with closing costs. Take advantage of this program to simplify your path to homeownership and enjoy its benefits.
The housing affordability crisis in California has made it hard for many first-time buyers to secure their dream homes, particularly those from underserved communities. To bridge this gap, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) Housing Affordability Fund (HAF) makes available grants of up to $10,000 to eligible first-time homebuyers intending to provide crucial support related to closing costs. This program targets low-to-moderate income homebuyers (120% AMI and below) who are served by a California REALTOR®.
C.A.R.'s HAF Grant ProgramEligibility Criteria of C.A.R.'s HAF Grant Program
By allocating financial resources to deserving individuals, the C.A.R.’s HAF Grant Program helps make homeownership a reality for first-time buyers. Its fundamental objective is to ameliorate the accessibility of residential properties for both aspiring first-time homeowners and existing homeowners concerned about their financial well-being.
Eligibility criteria for participation in the HAF Grant Program necessitate that applicants satisfy the following requirements:
Residence Requirements
- Applicants (and any co-buyers) must be first-time homebuyers and must not have owned any property in the last three years.
- At least one buyer must belong to an underserved community, such as people of color, individuals with disabilities, or LGBTQ+ persons.
More detail on: https://bit.ly/PersonofColorHUD)
- The home must be a single-family residence in California, including certain types like condos or mobile homes if affixed to the property.
- Approved applicants shall complete a HUD-Approved Homebuyer Education course with a local HUD-Approved Counseling Agency or online before the close of escrow. Fees vary per agency.
Income Limits
- The recipient’s income must be no more than 120% of the Area Median Income (AMI) as set by the California Department of Housing Community Development.
- Must be represented by a California Association of REALTORS® member in the transaction.
- Must certify they’ll move into the property within 60 days of closing and live there as their primary residence for at least three years.
- The purchase must be financed according to the National Association of REALTORS® Responsible Lending Criteria,( currently found at https://www.nar.realtor/credit-policy/responsible-lending-policy-why-do-realtors-seek-toprevent-abusive-lending#.Y2kzu4WbOkE.gmail ) which promotes responsible lending. All-cash purchases are generally not allowed unless pre-approved by the grantor.
- After the purchase, the recipient should have no more than $20K in savings.
Transaction Rules
- The recipient cannot receive cash back from the transaction, including refunds or excess financing.
- Program Grant Funds must be used as the final source of funds to complete the transaction after all other funds have been accounted for.
- Directors, officers, employees, and their immediate families from the Grantor, Grantee, and their subsidiaries, as well as REALTORS® and their immediate families, are not eligible.
- Grantees must not give preferential treatment to recipients represented by their in-house or preferred REALTORS®.
How to Apply For C.A.R.'s HAF Program
Applying for the California Association of REALTORS® Homeownership Assistance Fund (HAF) Program doesn’t have to be daunting if you have the right information. This article will share information on how to apply, who is eligible, what required documents need to be in hand, along with important deadline information. Since funding is offered on a first-come, first-served basis, time is of the essence. In order to apply you will need to contact a participating Realtor in the state of California. For all your loan needs, trust Loan Factory - the team dedicated to helping you secure the financing needed to purchase your home.
Required Documentation
The application will need to be sent in by your lender along with the following items:
- Signed Application and disclosures; including Exhibit A
- Copy of borrower’s ID/Driver’s License
- Copy of borrower’s Social Security card
- Copy of 2023 Federal Income Tax Returns with W-2s for all household members
- Copy of the latest IRS tax transcript accounting for all household members
- If Self-Employed must provide a Year-to-Date Profit and Loss Statement along with the previous 2 years' Federal Tax Returns
- Copy of other income documentation such as Alimony, Child Support, Social Security, SSI, Retirement, and Disability (supply a copy of the award letter or a copy of the check or direct deposit bank statement)
- Copy of all pages from the 3 most recent bank statements of all accounts. Must include other accounts such as mutual funds, stocks, bonds, 401K, and IRAs.
- Copy of First Mortgage Loan Approval Letter/DU Approval letter
- Copy of 1003 Loan Application
- Fully Executed Purchase Contract
- Proof of receipt of EMD
- Preliminary Title Report with wire instructions
- Verification of Employment
- Closing Disclosure (when available)
- Homebuyer Education Certificate of Completion with Neighborhood Partnership Housing Services
Get Your Home Loan With Loan Factory
Not everyone who applies for HAF funds will be approved, even if they meet the eligibility criteria. In some places, there may be more applications than there is available money. If you're worried about your ownership opportunity, you'll also want to reach out to Loan Factory for several reasons:
1. Expertise in Guidance:
Experienced loan officers on our team will help you through every step of the loan process so that you know what is happening at all times.
Find your local loan officer at: www.loanfactory.com/find-loan-officers
2. Rates That Are Competitive:
Our rates are among the best in the business, which means that you will save money over what you would pay with other lenders for similar products.
Compare rates at: www.loanfactory.com/rates-comparisons
3. Options for Loans That Are Diverse:
We have a number of options that fit your needs when looking for conventional or FHA loans, VA or any government-backed products so on and so forth if at all interested.
4. Service With Excellence:
Loan Factory is all about tailor-made services meant specifically for individual circumstances where finance is concerned.
5. Simplified Processes:
The loan application process has been streamlined using advanced technology, making it faster and more efficient with our AI-powered application
Take the First Step Today
With C.A.R. HAF program at your back and Loan Factory in the front, don't allow closing costs to deter you from your dreams of owning a house. Meet us right now so that we can elaborate on your loan alternatives and also take advantage of this great chance. Loan Factory has interesting mortgage interest rates or you can ring us at (714) 444-9999 for more information.
