FIRST-TIME
HOMEBUYER MANUFACTURED
HOME PROGRAM
OWNER
PROGRAM OVERVIEW EFFECTIVE 2024
OWNER
You must occupy the property as your primary place of residence.
You must contribute three percent of the purchase price from your funds.
You must not have owned a residential unit or been on the title of a residential unit within the last three years.
The maximum CalHome loan amount will be 40 percent of the Borrower’s purchase price for the property, or up to a maximum of $100,000.
You must complete a CalHome Approved Homebuyer Education Class.
The total gross annual income of the entire household must not exceed 80 percent of the Los Angeles County Area Median Income (AMI).
Applicant household income cannot exceed 80% of Los Angeles
County Area Median Income (AMI).
PROPERTY GUIDELINES
a)
The property must be within the City of Norwalk’s limits/boundaries.
b)
The property may be a new or resale manufactured home not on a permanent foundation.
c)
Occupancy Ratio: No more than 1.5 people per living space (including bedrooms, living room, family room, den/study).
d)
You must obtain fire and casualty insurance, including flood insurance when applicable, covering the replacement value of property improvements.
e)
The property must be free from any health & safety hazards and/or lead poisoning exposures. LOAN TERMS
LOAN TERMS
- Principal and interest payments shall be deferred for the term of the CalHome Program Loan.
- CalHome program Loans shall be secured by the property.
a)
Negative Amortization b)
Stated Income c)
Adjustable Rate Mortgage (ARM) d)
Interest-Only Loans e)
The Front-End Ratio cannot be below 28 percent or over 40 percent f)
The Back-End Ratio cannot be over 48 percent
PAYMENT
BREAKDOWN
The Loan shall be due and payable in 20 years, with 10 percent of the original principal to be forgiven annually for each additional year beyond the 10th year that the Borrower owns and continuously occupies the home.
Example: The original loan amount is $100,000 with a 3% simple interest added, totaling $103,000.
1st -10th Year Full amount due, no deductions.
11th Year: 10% reduction from principal amount, lowering amount to $93,000.
12th Year: 10% reduction from principal amount, lowering amount to $83,000.
13th Year: 10% reduction from principal amount, lowering amount to $73,000.
14th Year: 10% reduction from principal amount, lowering amount to $63,000.
15th Year: 10% reduction from principal amount, lowering amount to $53,000.
16th Year: 10% reduction from principal amount, lowering amount to $43,000.
17th Year: 10% reduction from principal amount, lowering amount to $33,000.
18th Year: 10% reduction from principal amount, lowering amount to $23,000.
19th Year: 10% reduction from principal amount, lowering amount to $13,000.
20th Year: Final 10% reduction, with a remaining balance of $3,000—only being the 3% simple interest for repayment.
Simple Interest Repayment: The accrued simple interest cannot be waived. A monthly repayment of $250.00 will be required over the span of one year to settle the remaining balance.
OWNER
You must occupy the property as your primary place of residence.
You must contribute three percent of the purchase price from your funds.
You must not have owned a residential unit or been on the title of a residential unit within the last three years.
The maximum CalHome loan amount will be 40 percent of the Borrower’s purchase price for the property, or up to a maximum of $100,000.
You must complete a CalHome Approved Homebuyer Education Class.
The total gross annual income of the entire household must not exceed 80 percent of the Los Angeles County Area Median Income (AMI).
Applicant household income cannot exceed 80% of Los Angeles
County Area Median Income (AMI).
PROPERTY GUIDELINES
a)
The property must be within the City of Norwalk’s limits/boundaries.
b)
The property may be a new or resale manufactured home not on a permanent foundation.
c)
Occupancy Ratio: No more than 1.5 people per living space (including bedrooms, living room, family room, den/study).
d)
You must obtain fire and casualty insurance, including flood insurance when applicable, covering the replacement value of property improvements.
e)
The property must be free from any health & safety hazards and/or lead poisoning exposures. LOAN TERMS
LOAN TERMS
- Principal and interest payments shall be deferred for the term of the CalHome Program Loan.
- CalHome program Loans shall be secured by the property.
a)
Negative Amortization b)
Stated Income c)
Adjustable Rate Mortgage (ARM) d)
Interest-Only Loans e)
The Front-End Ratio cannot be below 28 percent or over 40 percent f)
The Back-End Ratio cannot be over 48 percent
PAYMENT
BREAKDOWN
The Loan shall be due and payable in 20 years, with 10 percent of the original principal to be forgiven annually for each additional year beyond the 10th year that the Borrower owns and continuously occupies the home.
Example: The original loan amount is $100,000 with a 3% simple interest added, totaling $103,000.
1st -10th Year Full amount due, no deductions.
11th Year: 10% reduction from principal amount, lowering amount to $93,000.
12th Year: 10% reduction from principal amount, lowering amount to $83,000.
13th Year: 10% reduction from principal amount, lowering amount to $73,000.
14th Year: 10% reduction from principal amount, lowering amount to $63,000.
15th Year: 10% reduction from principal amount, lowering amount to $53,000.
16th Year: 10% reduction from principal amount, lowering amount to $43,000.
17th Year: 10% reduction from principal amount, lowering amount to $33,000.
18th Year: 10% reduction from principal amount, lowering amount to $23,000.
19th Year: 10% reduction from principal amount, lowering amount to $13,000.
20th Year: Final 10% reduction, with a remaining balance of $3,000—only being the 3% simple interest for repayment.
Simple Interest Repayment: The accrued simple interest cannot be waived. A monthly repayment of $250.00 will be required over the span of one year to settle the remaining balance.