The California Housing Finance Agency (CalHFA) is again partnering with Habitat for Humanity to stimulate new homeownership opportunities for more Californians.
CalHFA has authorized additional funding of up to $5 million for the purchase of homeownership first mortgages originated by Habitat for Humanity affiliates in California. The partnership enables California Habitat for Humanity affiliates to better leverage existing resources and generate more funds, enabling them to build more affordable homes that are urgently needed throughout the state.
“It’s no surprise that California’s families are challenged to find an affordable home for purchase. And if their income is very low, it seems nearly impossible. Working together, Habitat for Humanity and CalHFA can increase homeownership opportunities. In this unique partnership, CalHFA is putting its money where it counts,” said Theresa Parker, CalHFA’s Executive Director. “Today, we are committing $5 million more to help Habitat affiliates free up the mortgage dollars they need to create new affordable homes.”
Interested California Habitat affiliates must submit an application by Friday, March 7, 2008 in order to be considered for this round of funding. CalHFA anticipates announcing the loan purchase commitments by April 4, 2008.
This is the third offering since the December 2005 launch of the CalHFA Habitat for Humanity Loan Purchase Program. This third funding follows two successful rounds of funding in which CalHFA committed to purchase over $5.7 million in mortgage loans from nine local California Habitat for Humanity affiliates. The influx of capital to these California Habitat affiliates provides immediate access to funds they normally would collect over the life of the mortgages, increasing their current building production capacity.
Habitat for Humanity International is a nonprofit organization that builds affordable housing in partnership with families in need of a simple, decent place to live. Habitat partner families work with volunteers to construct their homes, providing what Habitat calls “sweat equity.” Habitat then sells the house to the partner family at cost with a zero-interest mortgage. Typical mortgages run from seven to 30 years.
Created in 1975 as the state’s affordable housing bank, the California Housing Finance Agency has invested over $14 billion in non-taxpayer funds to help more than 146,000 California families live in a home of their own with a mortgage they can afford. For more information and a complete description of CalHFA’s Habitat for Humanity Loan Purchase Program and other Special Lending Programs, visit www.calhfa.ca.gov or call toll free 877.9.CalHFA (877.922.5432).