California Housing Finance Agency
Helping Californians Achieve homeOwnership
California Housing Finance Agency
The California Housing Finance Agency (CalHFA) is a state agency that helps low and moderate-income individuals and families achieve homeownership. Established in 1975, CalHFA provides affordable housing solutions, including first mortgage loans, down payment and closing cost assistance, and programs for homebuyers and homeowners.
California Housing Finance Agency Programs key features
First Mortgage Loans
- Conventional Loans: CalHFA offers fixed-rate mortgages for low-to-moderate income borrowers using programs like Fannie Mae’s HomeReady.
- FHA Loans: Fixed-rate FHA loans with low down payment requirements.
- VA Loans: Available to eligible veterans and active-duty military with competitive rates.
- USDA Loans: Available for homes in rural areas with 100% financing.
Down Payment and closing Assistance Programs
- California Dream for All Shared Appreciation Loan:
- Provides up to 20% of the home’s purchase price as a second loan for down payment or closing costs.
- Operates on a shared appreciation model, meaning borrowers repay the loan and a portion of the home’s appreciation when they sell, refinance, or transfer the home.
- MyHome Assistance Program:
- Provides up to 3% of the purchase price or appraised value.
- Funds can be used for the down payment or closing costs.
- Structured as a silent second loan, deferred until the first mortgage is paid off, refinanced, or sold.
- Forgivable Equity Builder Loan:
- Provides up to 10% of the purchase price.
- Forgiven after 5 years of continued occupancy as the primary residence.
- CalHFA ZIP Program:
- Offers a 0% interest loan to cover closing costs.
- Often combined with CalPLUS mortgage options.
closing Assistance and Eligibility
- Targeted Homebuyer Benefits:
- First-Time Homebuyers: CalHFA defines first-time buyers as individuals who haven’t owned a home in the past three years.
- Income and purchase price limits ensure assistance targets low- to moderate-income families.
- Mortgage Credit Certificate (MCC):
- Helps reduce federal income taxes for eligible first-time homebuyers.
- Allows borrowers to claim a portion of their mortgage interest as a tax credit.
- Homebuyer Education:
- Borrowers are required to complete a HUD-approved homebuyer education course, ensuring they are prepared for the responsibilities of homeownership.
- Eligibility:
- Must meet income and purchase price limits, which vary by county.
- Minimum credit score requirements (typically 640 or higher for most programs).
- Borrowers must use the property as their primary residence.
Advantages of CalHFA Programs
- Affordable Financing: Competitive interest rates on first mortgages and assistance programs.
- Reduced Upfront Costs: Down payment and closing cost assistance minimize out-of-pocket expenses.
- Forgivable Options: Certain loans, like the Equity Builder Loan, are forgivable, reducing long-term costs.
- Support for Diverse Needs: Offers programs for various loan types, including FHA, VA, and USDA.
CALHFA's Mission
CalHFA aims to promote sustainable homeownership by providing affordable lending solutions, educational resources, and financial assistance to empower California residents. These programs are ideal for first-time homebuyers and low-to-moderate income families looking to purchase homes in California. By partnering with approved lenders, CalHFA ensures that borrowers receive guidance throughout the mortgage and home buying process.
California Dream For All Shared Appreciation Loan (CALHFA)
The California Dream For All Shared Appreciation Loan is designed to help first-time homebuyers with significant assistance for their down payment and/or closing costs. Here’s how it works:
- What It Is: Offers up to 20% of the home’s purchase price as a loan for down payment and/or closing costs.
- Repayment Terms: No monthly payments; repayment occurs when the home is sold, refinanced, or transferred. Borrowers share a portion of the home’s appreciation with the program.
- Eligibility:
- Must meet income limits.
- Be a first-time homebuyer.
- Complete a homebuyer education course.
- Best For: Buyers needing substantial down payment assistance in high-cost areas.
Program Overview
- Provides up to 20% of the home’s purchase price as a second loan for down payment or closing costs.
- Helps reduce monthly mortgage payments by increasing your upfront equity.
- Operates on a shared appreciation model, meaning borrowers repay the loan and a portion of the home’s appreciation when they sell, refinance, or transfer the home.
Key Benefits
- No Monthly Payments: The loan has no monthly payments, making it an affordable option for buyers who qualify.
- Larger Down Payment: Helps buyers reach the conventional loan threshold to avoid private mortgage insurance (PMI) and secure lower interest rates.
- Increased Purchasing Power: Allows buyers to afford homes in high-cost areas by reducing their out-of-pocket requirements.
eligibility Requirements
- First-Time Homebuyer: You must not have owned a home in the past three years.
- Income Limits:
- Your household income must fall within limits set for your county. For most areas, the limit is 150% of the Area Median Income (AMI)
- Credit Score:
- Minimum credit score requirement is 660 for most borrowers.
- If your debt-to-income (DTI) ratio is above 40%, a 680 credit score may be required.
- Debt-to-Income Ratio: Maximum DTI is 45%.
- Homebuyer Education: Complete a homebuyer education course through a CalHFA-approved provider.
- Property Requirements: The home must be located in California and used as your primary residence.
- Eligible property types include: Single-family homes, Condos or townhomes, Manufactured homes (with restrictions).
How Shared Appreciation Works
- Loan Amount: You borrow up to 20% of the home’s purchase price.
- Repayment: You repay the 20% loan plus a percentage of the home’s appreciation (if applicable) when:
- You sell the home.
- Refinance the loan.
- Transfer ownership.
- Appreciation Sharing:
- The shared appreciation percentage equals the loan’s original percentage.
- Example:
- Home Purchase Price: $500,000.
- Dream For All Loan: $100,000 (20%).
- Home Sold for: $600,000 (appreciation of $100,000).
- You repay $100,000 (loan) + $20,000 (20% of $100,000 appreciation).
pros
- Significantly reduces the upfront costs of buying a home.
- Avoids PMI by increasing your down payment.
- No monthly payment for the assistance loan.
Cons
- Requires sharing a portion of home appreciation upon sale or refinance.
- Availability is limited by funding (programs may pause once funds are exhausted).
- Higher income buyers in certain counties may not qualify due to income limits.
How to Apply
- Contact a CalHFA-approved lender to determine eligibility and start your application.
- Complete a homebuyer education course if you qualify.
- Work with your lender to pair this program with a first mortgage, such as a conventional or FHA loan.
CalHFA MyHome Assistance Program
The MyHome Assistance Program by the California Housing Finance Agency (CalHFA) offers down payment and/or closing cost assistance to first-time homebuyers, making homeownership more accessible in California’s competitive housing market. Here’s a breakdown of the program:
- What It Is: Provides up to 3% of the purchase price (5% for certain categories like teachers and firefighters) as a deferred-payment loan for down payment or closing costs.
- Repayment Terms: Deferred payments until the home is sold, refinanced, or no longer the primary residence.
- Eligibility:
- Income limits based on county and household size.
- Must be a first-time homebuyer.
- Must use a CalHFA-approved lender.
- Best For: Buyers looking for flexible, low-cost down payment assistance.
Program Overview
- Provides a deferred-payment loan of up to:
- 3% of the home’s purchase price for most buyers.
- 5% for qualified teachers, firefighters, and law enforcement officers through the School Teacher and Employee Assistance Program (STEAP).
- Funds can be used toward the down payment or closing costs.
- No monthly payments required on this loan until the home is sold, refinanced, or transferred.
Key Benefits
- Affordability: Helps buyers meet down payment requirements and reduce upfront costs.
- Deferred Payments: Payments are not required until the property is sold, refinanced, or no longer used as the primary residence.
- Flexible Pairing: Works alongside CalHFA first mortgages, such as Conventional, FHA, VA, or USDA loans.
eligibility Requirements
- First-Time Homebuyer: Defined as someone who has not owned and occupied a home in the past three years.
- Income Limits
- Your household income must fall within CalHFA’s income limits, which vary by county.
- Example: Los Angeles County income limit for 2024 is approximately $180,000 (varies by household size).
- Credit Score:
- Minimum 660 for most borrowers.
- Minimum 680 if your debt-to-income (DTI) ratio is higher than 40%.
- Debt-to-Income Ratio (DTI): Maximum DTI is 45%.
- Homebuyer Education: Complete a homebuyer education course through a CalHFA-approved provider.
- Property Requirements: The property must be located in California and used as your primary residence.Eligible properties include: Single-family homes. Condos or townhomes, Manufactured homes (with restrictions).
Loan Terms
- The MyHome Assistance Program is a silent second mortgage:
- No interest accrues on the loan.
- No payments are due until one of the following occurs:
- You sell the home.
- Refinance the first mortgage.
- Transfer ownership.
- The loan balance must be paid in full when triggered.
pros
- Reduces upfront cash requirements for down payment and closing costs.
- Deferred payments mean no immediate financial burden.
- Can be paired with a variety of loan programs (Conventional, FHA, VA, USDA).
- Additional assistance (5%) available for school teachers, firefighters, and law enforcement officers.
Cons
- Limited to first-time homebuyers.
- Requires repayment if you sell, refinance, or transfer the property.
- Maximum assistance is capped at 3% or 5% of the purchase price.
How to Apply
- Find a CalHFA-Approved Lender:
- Work with a lender who offers CalHFA programs to determine your eligibility and complete the application.
- Homebuyer Education:
- Complete the required education course, which is usually online and takes a few hours.
- Pair with a CalHFA First Mortgage:
- This program must be used in conjunction with a CalHFA first mortgage, such as:
- CalHFA Conventional Loan.
- CalHFA FHA Loan.
- CalHFA VA or USDA Loan.
- This program must be used in conjunction with a CalHFA first mortgage, such as:
- Close the Loan:
- Funds will be applied during closing to cover your down payment or closing costs.
Example
- Home Purchase Price: $500,000.
- MyHome Assistance Loan: $15,000 (3% of the purchase price).
- Result: You can reduce your out-of-pocket down payment or closing costs by $15,000, making homeownership more affordable.
CalHFA Zip Program
The CalHFA ZIP program is an excellent solution for homebuyers needing help with upfront closing costs, providing a pathway to affordable homeownership while minimizing immediate out-of-pocket expenses.
- What It Is: Provides a zero-interest loan to cover closing costs. Works as an add-on to CalHFA loan programs.
- Repayment Terms: Repayment is deferred until the home is sold, refinanced, or transferred.
- Eligibility:
- Must pair with a CalHFA first mortgage.
- Meet income and property requirements.
- Best For: Buyers who need help with closing costs specifically.
The CalHFA Zero Interest Program (ZIP) is designed to help California homebuyers with their closing costs, offering financial assistance with no interest or monthly payments. It’s an excellent option for reducing out-of-pocket expenses when purchasing a home.
Key Features of the CalHFA ZIP Program
- Zero Interest Closing Cost Assistance:
- Provides a 0% interest second loan to help cover closing costs.
- The loan amount is based on 2% or 3% of the total first mortgage loan amount, depending on the option selected.
- Deferred Payments: Repayment of the ZIP loan is deferred until one of the following occurs:
- The first mortgage is paid off.
- The home is sold or refinanced.
- The borrower no longer occupies the home as their primary residence.
- Eligibility:
- Borrowers must use a CalPLUS first mortgage (FHA or conventional) to qualify for ZIP assistance.
- Income and purchase price limits apply, varying by county.
- A minimum credit score of 640 (or higher, depending on loan type) is required.
- Borrowers must meet debt-to-income (DTI) ratio guidelines.
- Loan Types Supported:
- CalPLUS FHA Loan: A fixed-rate FHA loan with a slightly higher interest rate, paired with ZIP assistance.
- CalPLUS Conventional Loan: A fixed-rate conventional loan designed for low- to moderate-income borrowers.
- Homebuyer Education:
- Borrowers are required to complete a homebuyer education course through a HUD-approved agency or an approved online course like eHomeAmerica.
- Targeted Borrowers:
- Primarily for first-time homebuyers, though some exceptions may apply depending on the program.
Benefits of the CalHFA ZIP Program
- No Interest Accrued: The second loan is truly interest-free, reducing long-term financial burden.
- Lower Upfront Costs: Helps cover closing costs, allowing buyers to retain more of their savings.
- Deferred Repayment: No payments required until a triggering event, such as the sale or refinance of the property.
- Flexible Use: Can be used for closing costs and related expenses, easing the financial strain on buyers.
considerations
- Borrowers must commit to using a CalPLUS first mortgage loan.
- The ZIP loan must be repaid if the borrower sells, refinances, or moves out of the home.
- The slightly higher interest rate on the CalPLUS loan compensates for the benefit of the ZIP assistance.
California Mortgage Team
Why California is Choosing Capital Home Mortgage
Close On Time
Complete Control from Application to Funding
Low Rates & Low Fees
Direct Lender with Competitive Rates & Fees
Exceptional Service
7 Day a Week Support Application to Funding
California Mortgage Company Reviews
California Mortgage Programs
California Purchase loans
Looking to Purchase a California Home?
- Primary, 2nd Home, Investment
- Low Rates & Fees, No fee Options
- FHA, VA, USDA, Native American
- Conventional, Jumbo & Renovation
- Manufactured, Construction, Reverse
California Renovation Loans
Looking to Rehab a California Home?
- Remodel, Renovate or Repairs
- FHA 203K Streamline
- FHA Full Documentation Rehab
- Fannie Mae Homestyle Reno
- Freddie Mac Home Choice Reno
California FHA Home loans
Great First Time California Homebuyers
- Smaller Down Payments
- Flexible Underwriting Guidelines
- Higher Debt to Income Allowed
- Lower Credit Scores – Down to 500
- Down Payment Gifts Allowed
California va Home Loans
100% Financing for California Veterans
- No Mortgage Loan Limits
- Simple Qualifying
- Higher Debt to Income Allowed
- Lower Credit Scores – Down to 500
- Manual Underwriting Allowed
California Conventional loans
Flexibility for California Homebuyers
- Primary, 2nd Home, Investment
- Single and Multi-Family Properties
- Variable Mortgage Insurance Options
- Low Rates & a Variety of Terms
- Renovation Programs Available
California Jumbo Home Loans
California Non-Conforming Mortgage Loans
- Primary & 2nd Homes
- Variety of Mortgage Programs
- Simple Qualifying for Veterans
- Investor Specific Guidelines
- Credit Score Minimums
California USDA Home loans
100% California Rural Home Mortgages
- Primary Residences
- No Down Payment Required
- New Manufactured Homes Allowed
- Closing Costs / Repairs Rolled In
- Geographic and Income Limits Apply
California Native american Loans
California Hud 184 Home Loans
- Primary Residence Only
- Manual Underwriting for All Loans
- No Credit Score Requirements
- Tribal Grants Allowed
- Purchase, Refinance, and Renovation
California Manufactured loans
Great California Affordable Housing
- Existing Purchase or Refinance
- New Construction
- One Time Close Land/Home Combo
- Lock at Contract
- FHA, VA, USDA, Native American
California Reverse Mortgages
Your California Home at Work for You
- Primary Residence Only
- Simple Qualifying – Equity Based
- No Credit Score Requirements
- Minimum Age 62
- Purchase, Refinance, and Cash-Out
California Non QM Home loans
Making California Mortgages Possible
- Purchase, Refinance & Cash-out
- Primary, Secondary, Investment
- Full Doc Programs
- Alt Doc Programs
- Corporations OK
California construction Loans
Build Your California Dream Home
- Primary Residences Only
- One Time Close
- Lock Rate at Closing
- Traditional Final Mortgages
- No Payments During Construction
California Refinance Home Loans
California Rate & Term Refinance
- Lower Monthly Payment
- Shorten Mortgage Term
- Streamline Options Available
- Appraisal Waivers Allowed
- VA IRRRL’s
California Cashout Home Loans
California Equity Cash Out Mortgages
- Debt Consolidation
- Investment Opportunities
- Home Improvement
- Dream Vacation
- Higher Education
