CalHFA Loan Programs

Yes, education is a requirement for all CalHFA programs. At least one occupying first-time homebuyer on the loan must complete an 8-hour homebuyer education course. This can be done online through eHome or via in-person/virtual sessions with a HUD-approved counselor or NeighborWorks America. The certificate is valid for one year. If you are using the Dream For All program, there is an additional requirement: at least one borrower must also complete a specialized education module specifically covering how Shared Appreciation loans work.

The difference lies in the interest rate and the closing cost assistance. The CalHFA FHA program offers a standard 30-year fixed rate and can be paired with MyHome for down payment help. The CalPLUS FHA program bundles the first mortgage with the Zero Interest Program (ZIP) to cover closing costs. Because you are receiving a 0% interest loan for closing costs, the interest rate on the CalPLUS FHA first mortgage is typically slightly higher than the standard CalHFA FHA rate. If you have enough savings for closing costs, the standard program may offer a lower monthly payment.

Generally, no. For most CalHFA programs (including MyHome, ZIP, and MyAccess), the agency does not allow “subordination.” This means if you want to refinance your first mortgage to get a lower interest rate in the future, you must pay off the assistance loans in full as part of that transaction. The major exception is the Dream For All program. CalHFA allows a one-time re-subordination for Dream For All borrowers doing a limited cash-out refinance. This allows you to refinance the first mortgage to a better rate while keeping the 20% shared appreciation loan in second place.

Payments on CalHFA subordinate loans (MyHome, ZIP, MyAccess, and Dream For All) are deferred, meaning you do not make monthly payments on them. However, the loans are not forgivable. You must repay the full principal balance plus any accrued interest (or appreciation share) when a specific “trigger” event occurs. These events include selling the property, transferring the title to someone else, paying off the first mortgage in full, or refinancing your first mortgage. Failure to occupy the home as your primary residence or defaulting on the first mortgage can also trigger repayment.

Yes, but specific restrictions apply. Condominiums must be approved by the relevant agency (Fannie Mae for Conventional, FHA for FHA loans). Manufactured homes are eligible but must be double-wide or larger; single-wide homes are not permitted. Additionally, manufactured homes often require higher credit scores (typically 660 minimum) and stricter debt-to-income ratios (capped at 45%). Unlike standard homes, manufactured homes generally cannot be on leasehold land (rented lots), except in specific FHA circumstances, and must be on a permanent foundation. You cannot use manual underwriting for a manufactured home purchase.

The minimum credit score depends on the specific loan program and your income level. For Government loans (FHA, VA, USDA), the standard minimum score is 640. However, if you need manual underwriting or are buying a manufactured home, the FHA requirement jumps to 660. For Conventional loans, the standard minimum is 680. There is an exception for low-income borrowers (making ≤ 80% AMI), who may qualify with a score of 660. Lenders always use the middle credit score of the lowest-scoring borrower on the application to determine eligibility. Borrowers with no credit score are not permitted.

All CalHFA programs have strict income limits based on the county where the property is located. For example, in 2025, the limit for Los Angeles County is $211,000, while Alameda County is $316,000. Lenders calculate your income using standard underwriting guidelines (FHA or Fannie Mae). Importantly, CalHFA generally uses the income calculated for “credit qualifying” purposes to determine if you meet these limits. This means if you have a non-borrowing spouse, or income that isn’t needed to qualify for the mortgage (like certain overtime), it may not count toward the cap. Borrowers with income under 80% of the Area Median Income may qualify for lower interest rates.

This program provides a loan for up to 20% of the home’s sales price (capped at $150,000) to be used for a down payment. You do not make monthly payments on this loan. Instead, when you sell the home or refinance, you repay the original 20% principal plus a share of the home’s appreciation (increase in value). For most borrowers, this share is 1:1—if you borrowed 20% of the home’s value, you pay back 20% of the appreciation. If your income is below 80% of the Area Median Income, the share is reduced to 0.75:1. The appreciation repayment is capped at 2.5 times the original loan amount.

Yes, for the vast majority of borrowers using CalHFA’s assistance, you must be a first-time homebuyer. CalHFA defines this as anyone who has not held an ownership interest in a principal residence (the home you live in) during the three years immediately preceding the purchase of the new home. This rule applies to all borrowers on the loan. If you are married and your spouse owned a home they lived in within the last three years, you would not qualify. A rare exception exists for borrowers getting a standard first mortgage without any down payment assistance.

While both programs provide financial help, they serve different purposes and have different costs. The MyHome Assistance Program is a deferred-payment loan used primarily for your down payment, though it can also cover closing costs. It typically carries a 1.00% simple interest rate. In contrast, the Zero Interest Program (ZIP) is designed exclusively to pay for closing costs and prepaid items; it cannot be used for the down payment. As the name suggests, ZIP has a 0.00% interest rate. Furthermore, MyHome can be paired with almost all CalHFA first mortgages, whereas ZIP is only available if you choose a “CalPLUS” first mortgage.