California Code of Regulations › Title 25 - Housing and Community Development › Division 1 - Housing and Community Development › Chapter 7 - Department of Housing and Community Development Programs › Subchapter 9 - Calhome Program Requirements › Article 3 - Homeowner/Homebuyer Loan Requirements › Section 7726 - Homeowner/Homebuyer Loan Terms

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) CalHome Program loans shall be secured by
					 the property or leasehold interest, as applicable.
(b) The lien securing repayment of the
					 CalHome Program loan shall be subject only to liens, encumbrances and other
					 matters of record reviewed and approved by the Recipient responsible for
					 underwriting the CalHome Program loan.
(c) Homeowner/Homebuyer CalHome Program loans
					 shall have the following terms and conditions:
(1) principal and interest payments shall be
					 deferred for the term of the CalHome Program loan;
(2) loans shall be repayable upon sale or
					 transfer of the property, when the property ceases to be owner-occupied, or
					 upon the CalHome Program loan maturity date; However, if it is determined by
					 the recipient that repayment of the CalHome Program loan at the maturity date
					 causes a hardship to the borrower, the recipient has two other options. They
					 are:
(A) Amending the note and deed of trust
					 to defer repayment of the amount due at loan maturity, that is the original
					 principal and the accrued interest, for up to an additional 30 years (at 0%
					 additional interest), this may be offered one time, or;
(B) Converting the debt at loan maturity,
					 that is the original principal balance and any accrued interest, to an
					 amortized loan, repayable in 15 years at 0% additional
					 interest.
(3) loans are
					 not assumable;
(4) the following
					 transfers of interest shall not require the repayment of the CalHome Program
					 loan:
(A) transfer to a surviving joint tenant
					 by devise, descent, or operation of law on the death of a joint
					 tenant;
(B) a transfer, in which
					 the transferee is a person who occupies or will occupy the property, which is:
(i) a transfer where the spouse becomes an
					 owner of the property;
(ii) a
					 transfer resulting from a decree of dissolution of marriage, legal separation
					 agreement, or from an incidental property settlement agreement by which the
					 spouse becomes an owner of the property; or
(iii) a transfer into an inter vivos trust in
					 which the borrower is and remains the beneficiary and occupant of the
					 property;
(5)
					 the term for first-time homebuyer mortgage assistance CalHome Program loans
					 shall be thirty (30) years with the following exception: when United States
					 Department of Agriculture, Rural Housing Service (USDA-RHS) 502 mortgage loans
					 are in first lien position, the term shall be the term of the 502 mortgage (30
					 to 38 years);
(6) the term for
					 owner-occupied rehabilitation CalHome Program loans shall be a maximum of
					 thirty (30) years as determined by the Recipient; and
(7) a borrower may pay the CalHome Program
					 loan amount, in part or in whole, at any time without
					 penalty.