CalHFA Loans

CalHFA loans are mortgage programs offered by the California Housing Finance Agency (CalHFA) designed to help low- and moderate-income Californians achieve homeownership. These loans come with various benefits, including lower interest rates, down payment assistance, and more flexible qualification criteria.

What is a CalHFA Loan?

CalHFA loans are designed to assist first-time homebuyers, as well as low- and moderate-income individuals and families in California. These loans are offered through a network of approved lenders and come with additional programs for down payment and closing cost assistance. The primary goal of CalHFA is to make homeownership more accessible and affordable for Californians.

Advantages of CalHFA Loans

  1. Down Payment Assistance: CalHFA offers several down payment assistance programs, such as MyHome Assistance Program, which provides a deferred-payment junior loan of up to 3.5% of the purchase price or appraised value, whichever is less.
  2. Competitive Interest Rates: CalHFA loans often come with lower interest rates compared to conventional loans, making monthly payments more affordable.
  3. Flexible Qualification Criteria: These loans have more lenient qualification requirements, which can benefit first-time homebuyers and those with lower income or limited savings.

Requirements for a CalHFA Loan

  1. First-Time Homebuyer Status: Most CalHFA programs require the borrower to be a first-time homebuyer, defined as someone who has not owned and occupied their own home in the last three years.
  2. Income Limits: Borrowers must meet CalHFA income limits, which vary by county and household size.
  3. Credit Score: A minimum credit score of 660 is typically required, though this can vary depending on the specific program and lender.
  4. Homebuyer Education: Borrowers are required to complete a homebuyer education course to ensure they understand the home buying process and responsibilities of homeownership.

How CalHFA Loans Work

  • Loan Programs: CalHFA offers several loan programs, including the CalHFA FHA Loan, CalPLUS FHA Loan, CalHFA VA Loan, and CalHFA USDA Loan, among others. Each program has its own benefits and requirements.
  • Down Payment and Closing Cost Assistance: Programs like MyHome Assistance Program and the School Teacher and Employee Assistance Program (School Program) offer financial aid for down payment and closing costs.
  • Mortgage Insurance: Depending on the loan type, mortgage insurance may be required, but CalHFA's competitive rates can still make these loans more affordable than other options.

Benefits of CalHFA Loans

  1. Accessibility for Low- and Moderate-Income Buyers: CalHFA loans are designed to make homeownership possible for individuals and families who may not qualify for conventional loans.
  2. Comprehensive Support: With down payment assistance, homebuyer education, and competitive interest rates, CalHFA provides a comprehensive support system for new homeowners.
  3. Variety of Loan Options: Whether you are a first-time homebuyer, a veteran, or looking for a USDA loan, CalHFA offers a range of loan programs to meet diverse needs.

CalHFA loans provide valuable opportunities for Californians to achieve homeownership with the support of down payment assistance, competitive interest rates, and flexible qualification criteria. By partnering with CalHFA, borrowers can access the resources and support they need to purchase a home and build a stable future.

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