CalHFA is an agency which started in 1975, and is chartered by the State of California, offering a variety of government-backed home loans from the FHA, VA, and USDA. It offers government-backed home loan programs including:
- CalHFA FHA Loan Program: An FHA-insured loan featuring a CalHFA 30 year fixed interest rate first mortgage.
- CalPLUS FHA Loan Program: An FHA-insured first mortgage offered with a “slightly higher” 30 year fixed interest rate than the CalHFA standard FHA program. This option is combined with the CalHFA Zero Interest Program (ZIP) to help borrowers with closing costs.
- CalHFA VA Loan Program: A VA-insured home loan, offered as a 30-year fixed interest rate first mortgage.
- CalHFA USDA Program: A USDA-guaranteed 30-year, fixed rate first mortgage loan program. This loan can be combined with the CalHFA MyHome Assistance Program (MyHome).
CalHFA FHA Loans And CalPLUS FHA Loans
CalHFA FHA loans are offered through a network of participating lenders. This FHA-insured loan features a CalHFA 30-year, fixed-interest rate first mortgage.
These are mortgages for owner-occupiers only, and non-occupant co-borrowers are not permitted (see below). Homebuyer education is required and there are income limits you must meet to qualify.
Homes permitted under this program for first-time home buyers include manufactured homes, condo units, granny flats and guest houses. Condo units must “meet the requirements of the first mortgage” according to the official site. Manufactured housing may be acceptable on a case-by-case basis.
CalHFA FHA Loan Requirements At A Glance
- You must live in the property as your primary residence.
- Non-occupant co-borrowers are not allowed.
- The home must be a single-family, single-unit home.
- Income limits and other restrictions apply.
- Manufactured housing may qualify for these loans.
- Condominiums may qualify for these loans.
- Homebuyer education counseling is required as a condition of loan approval.
There is another CalHFA FHA loan program called CalPLUS, which has a higher fixed interest rate but is combined with a program called CalHFA Zero Interest. That program can help borrowers pay for closing costs. Homebuyer education and other conditions (see above) will apply.
CalHFA VA Loan Program
The CalHFA VA program is for those who qualify for VA mortgages. You must obtain a VA Certificate of Eligibility to be approved for this mortgage. The CalHFA VA Loan program is a 30-year, fixed-rate mortgage with zero down required. Income limits, homebuyer education, and occupancy are all required under the CalHFA VA Loan program.
CalHFA VA Loan Program Requirements At A Glance
Borrower Requirements
- You must be eligible for a VA home loan.
- You must occupy the property as a primary residence.
- The home must be a single-unit, single-family home.
- Condo units may qualify.
- Manufactured housing does NOT qualify.
- Non-occupant co-borrowers are not allowed.
- Homebuyer education counseling is required as a condition of loan approval.
- Income limits apply.
CalHFA has other first-time home buyer programs for those who are not eligible for VA mortgages.
CalHFA USDA Program
The CalHFA USDA Program features a 30-year, fixed rate USDA-guaranteed first mortgage loan. Income restrictions apply, homebuyer education is required, non-occupying co-borrowers are not permitted.
The CalHFA official site states that first-time home buyers may choose to combine this loan with the MyHome Assistance Program.
However, at press time, the MyHome Assistance program page on the official site references conventional and FHA loans, but does not mention USDA loans. That does NOT mean USDA loans automatically do not qualify for MyHome Assistance–be sure to ask a participating lender about this option should you need it.
This program differs from the other options listed above; USDA loans require the home to be purchased within a designated USDA rural zone.
CalHFA USDA Program Requirements At A Glance
- You must live in the property as your primary residence.
- Non-occupant co-borrowers are not allowed.
- The home must be a single-family, single-unit home.
- Income limits and other restrictions apply.
- Condominiums may qualify.
- Manufactured housing may qualify on a case-by-case basis.
- Homebuyer education is required as a condition of loan approval.
What To Know About CalHFA Government Loans
All of the CalHFA programs mentioned above require homebuyer education or home buyer counseling. When registering for such courses, you should expect online classes to take roughly eight hours to complete.
Government-backed mortgages like FHA and VA loans typically feature lower down payments, but some may choose to apply for down payment assistance in any case. Remember that any down payment help you get from one of these programs can free up money you can use to pay other mortgage expenses such as mortgage insurance premiums, appraisal fees, etc.
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Joe Wallace has been covering real estate, mortgage and financial topics since 1995. His work has appeared on ABC, The Pentagon Channel, Veteran.com plus a variety of print and online publications. He is a 13-year veteran of the United States Air Force and a former reporter for Air Force Television News.