CalHFA suspends some programs

The California Housing Finance Agency has stopped making some loans due to budget issues facing California. One of the ways 100% financing was still available was through programs available through CalHFA. Down Payment Assistance programs were a way of bridging the gap of the final 3.5% required of a FHA loan (seller funded versions of DPA's were banned earlier this year). Mortgage credit continues to contract and remove the marginal buyers from the marketplace.