I’m looking at buying in the next 1.5 years. A 20% down payment for a 300-400k house is affordable if I use all my 401k and savings, but I’d rather not take all of my backup funds and market investments out to buy a house. Recently, I found out about the CALHFA loan option. Would using the CALHFA home loan be a good option? I was planning to put 10% down on a house.
What are the PMI rules with a CALHFA? Is there a minimum number of years before I can get out the PMI? (I believe with a federal FHA home loan, you can’t get rid of PMI for 5 years, even if you catch up to 20%)
Has anyone else used the calhfa to purchase a home in san diego? Any disadvantages I should be aware of?