California Housing Finance Agency
CalHFA offers first mortgages along down payment and closing cost assistance for low to moderate income homebuyers in California.
Please note that the information below is a highlight of the programs not an all inclusive list of requirements and guidelines. For additional information contact us or your local lender.
Who is this program for?
This program is for low to moderate income households who intend to occupy the property as their primary residence and who are within the set income limits and meet the credit score and qualifying requirements.
The applicant DOES NOT need to be a first time homebuyer for the stand alone first mortgage, however, all closing cost and down payment assistance programs DO require that the applicant be a first time homebuyer (1).
The income limits for this program can be found on the INCOME LIMITS PAGE
Credit and qualifying requirements
FHA, VA and USDA CalHFA loans
Minimum credit score of 660
Maximum Debt to Income Ratio of 45% with an automated approved/eligible decision. 43% for manual underwriting.
Conventional Loans
Minimum credit score of 680. (2)
Maximum Debt to Income Ratio of 45% with an automated approved/eligible decision.
How do the programs work?
The CalHFA offers has two programs available for first time homebuyers which provide down payment assistance and closing cost assistance. Both programs must be used along with a CalHFA first mortgages.
These programs are loans, not grants. Each program will be a lien against the property and will eventually need to be paid back. These programs are NOT grants.
- MyHome
- ZIP
The MyHome program is a simple interest deferred payment loan that can be used towards down payment or closing costs.
| First Mortgage Type | Max MyHome Loan Amount |
|---|---|
| CalHFA FHA | Amount not to exceed the lesser of: $10,000 or 3.5% of the sales price or appraised value, whichever is less. |
| CalHFA Conventional or CalHFA USDA | Amount not to exceed the lesser of: $10,000 or 3% of the sales price or appraised value, whichever is less. |
| CalHFA VA | 3% of the sales price or appraised value, whichever is less. |
______________________________
The following categories are NOT subject to the $10,000 loan amount cap.
Eligible Borrowers
- School Employees(3)
- Fire Department Employees(4)
Eligible Property Types
- New Construction properties
- Manufactured housing properties
- Single family homes with Accessory Dwelling Units (ADU)
The loan will need to be repaid at the earliest of the following events:
- Transfer of title
- Payoff or refinance of the first mortgage
- Formal filing and recording of a Notice of Default (unless rescinded)
The CalHFA Zero Interest Program (ZIP) is a loan that can be used to cover closing costs and prepaid charges when the borrower uses a CalHFA FHA or conventional first mortgage. The funds cannot be used for down payment or debt payoff.
The amount of the loan will be either 2% or 3% of the first mortgage depending on the chosen interest rate as reflected on the daily rate sheet pricing
The loan will need to be repaid at the earliest of the following events:
- Transfer of title
- Payoff or refinance of the CalPLUS FHA first mortgage
- Formal filing and recording of a Notice of Default (unless rescinded)
The programs are offered through approved lenders and underwritten by CalHFA. Interest rates are set by CalHFA and non negotiable.
All applicants must complete an approved homebuyer education class.
What properties are eligible?
The property must be located within the state of California and must be occupied as the primary residence of the borrower. The eligible property type will depend on the type of first mortgage being used
Conventional CalHFA loans
Single family, manufactured housing, townhomes and condominium properties are eligible.
FHA CalHFA loans
Single family, manufactured housing and FHA approved townhomes and condominium properties are eligible.
VA CalHFA loans
Single family homes and VA approved townhomes and condominium properties are eligible.
USDA CalHFA loans
Single family, townhomes and condominium properties are eligible. Manufactured homes are eligible ONLY if the borrower will be the First owner.
Where do I apply?
(1) Borrowers affected by a natural disaster in California who lost their primary residence are exempt from the first time homebuyer requirement
(2) Minimum credit score of 660 for borrowers with income less than or equal to the HomeReady income limits
(3)School Employees is defined as teachers, administrators, school district employees and staff members working for any California public school (pre/TK-12) or public-school district, which includes Charter schools and county/continuation schools.
(4) Fire Department Employees is defined as firefighters, administrators and all other state, federal, local or tribal fire department employees.