CalHFA

First Mortgage Loan Programs

CalHFA Conventional Loans

interest only PLUSSM
This conventional mortgage loan offers up to 95% financing and allows borrowers to pay only the interest for the first five years of a 35-year term. After that, borrowers pay principal and interest at the same low, fixed interest rate for the remaining 30 years.
40-Year Fixed Mortgage
This conventional mortgage loan offers up to 95% financing with a 40-year term and a low, fixed interest rate.
30-Year Fixed Mortgage
This conventional mortgage loan offers up to 95% financing with a 30-year term and a low, fixed interest rate.

Government Insured/Guaranteed Loans

30-Year Fixed Government Insured/Guaranteed Mortgage
This program is for mortgage loans that are insured or guaranteed by FHA, VA or USDA and features a 30-year term with a low, fixed interest rate.

Down Payment Assistance Loan Programs

Affordable Housing Partnership Program (AHPP)
A joint effort by CalHFA and cities, counties, redevelopment agencies and housing authorities whereby a deferred payment subordinate loan from a locality is utilized by the first-time homebuyer to assist them with down payment and/or closing costs.
CalHFA Housing Assistance Program (CHAP)
Offers a deferred-payment second loan of an amount up to the lesser of two percent (2%) of the purchase price or appraised value.
California Homebuyer's Downpayment Assistance Program (CHDAP)
Offers a deferred-payment junior loan of an amount up to the lesser of three percent (3%) of the purchase price or appraised value.
Extra Credit Teacher Home Purchase Program (ECTP)
A low interest rate CalHFA first loan, together with a forgivable interest CalHFA junior loan to assist eligible teachers, administrators, staff members and classified employees to purchase their first home.
High Cost Area Home Purchase Assistance Program (HiCAP)
Designed to assist first-time homebuyers in the highest housing cost areas of the state.
School Facility Fee Down Payment Assistance Program (SFF)
A conditional grant program that provides assistance to buyers of newly constructed homes throughout California.

In order to qualify for a CalHFA loan, certain requirements must be met. They are:

Be a first-time homebuyer. (CalHFA considers you a first-time homebuyer if you have not owned and occupied your own home during the last 3 years.). (This requirement is not necessary if the property is located in a Federally designated Targeted Area )
Have an annual household/family income within CalHFA’s income limits for the family size and county in which the home is located.
Purchase a home that is within CalHFA’s sales price limits for the family size and county in which the home is located.
Live in the home you are purchasing for the entire term of the loan, or until the home is sold or refinanced.
Meet credit, income and loan requirements of the CalHFA lender and the mortgage insurer.
Be a citizen or other national of the United States or a qualified alien.

Property Requirements

CalHFA financing is available on a statewide basis; however, not all properties meet CalHFA’s eligibility requirements.

Eligible properties must be priced at or below the county-by-county limits established by CalHFA for new or existing homes (income and sales price limits are slightly higher in Federally designated Targeted Areas).
Other property eligibility requirements include:
- Newly constructed or existing (previously owned) home
- Single family residence (detached)
- Five acre maximum
- An attached residence (a half-plex that is not part of a planned unit development (PUD) or Condominium)
- A detached unit within a PUD
- A Condominium or attached unit in a PUD. (Check with lender for eligible condominiums.)

What You Should Know Before Buying a Home

Before you start looking for a home, get pre-qualified for a loan. Banks, credit unions and mortgage bankers make home loans; mortgage brokers process them. The lenders will take an application, process the loan documents, and see the loan through to the funding stage.
If you have marginal or bad credit, consult your lender. You may be able to qualify for a loan depending on how long ago and what reason(s) caused the bad credit. A lender should be able to advise you on whether your credit history will prevent you from qualifying for a home loan.
You will need a down payment. Down payment requirements vary depending on the type of loan. Many down payment assistance programs exist. These programs may loan or grant you the funds necessary for the down payment. Consult with a lender about programs available in your area.
You will need funds for closing costs. Closing costs are charges for services related to the closing of your real estate transaction. They include, but are not limited to:
- Escrow fees charged by the company handling the transaction
- Title policy issuance fees charged by the title insurance company
- Mortgage insurance fees
- Fire and homeowners insurance
- County Recorder fees for recording your deed
- Loan origination fees
  
  Consult your lender for an actual estimate of these costs, as well as information about loan programs which can assist in financing your closing costs
Some loans have "points" and some do not. A point is a loan origination fee equivalent to 1% of the loan amount. Together with the interest rate they constitute the yield on your loan for the lender. Some lenders charge a higher interest rate to compensate for charging no points. It is important to comparison shop lenders to make sure your loan is at a competitive yield.
Should you select a mortgage with a fixed rate or an adjustable rate? The answer to this question depends on whether mortgage rates are at a high or a low point when you purchase, and on how long you plan to live in the home. If rates are high, an adjustable rate might be attractive since subsequent rate drops could reduce your monthly payments. Additionally, lenders may offer a low rate during the first few years of an adjustable mortgage to make it appealing to you. If interest rates are low you might want to take a fixed rate to protect yourself against the possibility of rising interest rates.
Be aware of the two main types of loan categories.
- Conventional Loans. Conventional mortgage loans are available with fixed or adjustable interest rates. Some loans may require mortgage insurance.
- Government Loans. These include Federal Housing Administration (FHA) fixed and adjustable rate mortgage loans, and Veterans Administration (VA) fixed rate mortgage loan
If you are a low or moderate income homebuyer, there are special programs designed to help you. These loans are available through private lenders, as well as local and state housing agencies, like the California Housing Finance Agency (CalHFA). Most lenders specializing in real estate mortgage loans are aware of these types of loan programs.
Why might I have to pay mortgage insurance? Mortgage insurance protects the lender from potential loss if you should default on your mortgage loan payment. Generally, conventional loans that require larger down payments do not require mortgage insurance. Mortgage insurance is always required on FHA mortgage loans.
Many organizations offer home loan counseling to prospective homebuyers. These organizations provide classes for homebuyers to cover the steps to homeownership. They will cover home selection, realtor services, lenders, loan programs, homeownership responsibilities, saving for a down payment, and other important pieces of information. Many first-time homebuyer programs require homebuyers to attend this type of class to be eligible for selected programs.

CalHFA does not lend money directly to consumers. CalHFA works through and uses approved private lenders to qualify consumers and to make all mortgage loans. CalHFA purchases closed loans that meet CalHFA's requirements