Community Stabilization Home Loan Program

The Community Stabilization Home Loan Program, or CSHLP for short, is an emergency measure signed into law by Governor Arnold Schwarzenegger, and administered by the California Housing Finance Agency or CalHFA. Armed with more than 200 million in funding, the goal is to provide low cost, no down payment funding for the purchase of foreclosed homes in California. Currently it is limited to the most distressed counties of Riverside, Stanislaus, San Joaquin Merced, Los Angeles, Contra Costa and Alameda counties.

Press release on this law

Since this programs is offered through CalFHA, there is an income limit to ensure the funds go those who need them the most.  This initiative is one of many by CA lawmakers in an attempt to soften the blow of this current mortgage crisis, and reduce the inventory of foreclosed homes. It is anticipated that the program will arrive in Sacramento county soon (currently there are more foreclosures than any other type of listing in the Capitol market here) so please check back for updates.

UPDATE 8/21/2008

This program has been expanded into Contra Costa, Monterey and San Benito counties. But most importantly it is now active in Sacramento County, for all zip codes! This special program for foreclosed homes only features special 5.5% fixed rate, 30 year financing, NO DOWN PAYMENT REQUIRED! 100% financing. Apply Now before funds run out!

UPDATE 8/21/2008

It is now clear that there are only a limited number of properties eligible for the CHSLP in Sacramento County (about 20). The program is also much more complicated than we anticipated. We are working closely with CalHFA to more effectively offer this product: check the blog for updates.

A note on CalFHA

CSHLP is not the only loan program offered by CalHFA. They offer the following loan and down payment assistance programs (for alternate low down mortgages including FHA click here):

First Mortgages

• CalFHA 1st mortgage at below market rates, choice of 30, 40 or even an 5 year Interest Only term.
• CalFHA 1st mortgages can be combined with an FHA, VA or even USDA guarantee, offering the benefits of that financing combined with lower rates.

Down Payment Assistance 

• Affordable Housing Partnership Program (AHPP)
  A joint effort by CalHFA and cities, counties, redevelopment agencies and housing authorities whereby a deferred payment subordinate loan from a locality is utilized by the first-time homebuyer to assist them with down payment and/or closing costs.
• CalHFA Housing Assistance Program (CHAP)
  Offers a deferred-payment second loan of an amount up to the lesser of two percent (2%) of the purchase price or appraised value.
• California Homebuyer's Downpayment Assistance Program (CHDAP)
  Offers a deferred-payment junior loan of an amount up to the lesser of three percent (3%) of the purchase price or appraised value.
• Extra Credit Teacher Home Purchase Program (ECTP)
  A low interest rate CalHFA first loan, together with a forgivable interest CalHFA junior loan to assist eligible teachers, administrators, staff members and classified employees to purchase their first home.
• High Cost Area Home Purchase Assistance Program (HiCAP)
  Designed to assist first-time homebuyers in the highest housing cost areas of the state.
• School Facility Fee Down Payment Assistance Program (SFF)
  A conditional grant program that provides assistance to buyers of newly constructed homes throughout California.

  CSHLP program did Governor or Governor Schwarzenegger launch Community Stabilization Home Loan Program name of forclosure program in california loan program in my community stabilization program its special for distressed CalFHA CDAP AHPP CHAP ECTP HiCAP SFF SMART Program CalFHA loans 5.5% rate

CalFHA distribution of funds; 2008 annual budget

 *Please note that in most cases, the down payment assistance programs offered through CalHFA must be combined with a CalHFA first mortgage. It also can be difficult getting your offer accepted with financing of this nature, so it is critical you work with a Realtor who is familiar with these loans. Sunrise Vista has loan officers that are highly trained and experienced with these programs. Get in touch with one!