California: Two New Loans for Buyers

The California Housing Finance Agency is unveiling a 35-year, fixed-rate interest-only loan that it believes will allow borrowers to afford a first home in the state's pricey shelter market by lowering monthly mortgage payments by hundreds of dollars.
In addition to its so-called PLUS loan, CalHFA is offering free mortgage protection through its HomeOpeners program, which automatically covers borrowers for six months after a job loss; the policy covers up to $2,500 a month for the first five years of a loan. CalHFA offers mortgage interest that is below market rate to first-time buyers who meet its income, home sale price, and other restrictions; and its loans typically range from $250,000 to $325,000."There are a lot of loan products out there and this is one more avenue to take," says Jim Hamilton, president of the CALIFORNIA ASSOCIATION OF REALTORS®, who adds that condominiums might make good buys in expensive areas.