New (yet old) loan program for 1st time buyers

Hey everyone. I got some information on a loan that will help our first time buyers. It's called the "CalFHA" loan - takes after the old Chaffa loans.

Positives:

• A first time buyer can borrow up to $25,000 for a down payment.
• They can also borrow an additional 3% for the closing costs.
• All this is carried in the background - like a silent second. It is carried on the books as a second loan which is offered at 30 years at 5% simple interest. All payments are deferred until the first is paid off or refinanced, or the CalFHA becomes due.
• It can be subordinated with the CHAP loan and/or the Extra Credit Teacher's Program(ECTP) making a third mortgage.
• The loan is not based on credit scores.
• The first is a fixed rate over 30 years at 4.5% .

Negatives:

• There are income limits but they are very generous (like a family of 3 must earn under $104,621 annually).
• There is PMI (Private Mortgage Insurance) on this loan.
• They require the buyer to pay 1.5 points on the loan.
• And the limit for the loan is only $396,000

There are local lenders doing these loans. Contact me for information on who to call. You can find more information at the following web site: www.calFHA.ca.gov .

Lorraine, Realtor
California Oaks

How Can I Raise My Credit Score?

I was asked the other day "How can I raise my credit score?" (Fico Score) A FICO score is a credit score developed by Fair, Isaac & Co. Well I don't pretend to be a credit score expert, but a credit repair expert gave me the following hints for my clients:

1. Close any Unused zero balance cards as they are factored into the score as if they were "maxed" out.

2. Consolidate low balance cards into one higher balance and close the "emptied" cards.

3. Request lower maximums on unused cards you want to keep.

4. Request a yearly Free Credit Report

5. Check for Duplicate entries on credit report and Contest them to the reporting agencies.

6. Check for Errors on credit report and Contest them to the reporting agencies.

7. Check for Liens / Delinquents / Judgments that have been satisfied and get them removed or corrected.

8. Don't make new Big purchases when you're applying for a mortgage.

Can anybody think of any more hints to help raise a credit score ?------David Walker

Rain, Rain, Go Away!

I wonder how the rain has affected home shoppers over the past couple of months. Inventory of homes seems to be very low. We could see the frenzy like we saw last year at this time with homes selling for over list and multiple offers. I guess we'll see once the sun comes out.