CalHFA USDA Loan

No, the Zero Interest Program (ZIP) is not available for CalHFA USDA loans. ZIP is exclusively paired with the CalPLUS loan products (CalPLUS Conventional and CalPLUS FHA). If you choose the CalHFA USDA program, your primary option for assistance is the MyHome Assistance Program. You cannot mix and match ZIP with the USDA government loan product. Borrowers needing closing cost assistance with a USDA loan must rely on the 3% provided by MyHome or seller concessions permitted under USDA guidelines.

Yes, generally you must be a First-Time Homebuyer to utilize the CalHFA USDA program, especially if you are combining it with the MyHome Assistance Program. CalHFA defines a first-time homebuyer as someone who has not held an ownership interest in a primary residence in the past three years. There is a limited exception: if you obtain the CalHFA USDA first mortgage without any CalHFA subordinate financing (like MyHome), the first-time homebuyer requirement may be waived, though this is a less common scenario for borrowers seeking assistance.

Your credit score determines the maximum Debt-to-Income (DTI) ratio allowed. If your credit score is 700 or higher, CalHFA allows a maximum DTI of 50.00%. If your credit score falls between 640 and 699, your DTI is capped at 45.00%. Additionally, regardless of your credit score, if you are purchasing a manufactured home, the maximum DTI is always capped at 45.00%. These strict ratios help ensure that the mortgage payments remain affordable for the borrower.

Borrowers must meet the income limits established by CalHFA for the county where the property is located. The total qualifying income of all borrowers cannot exceed the published CalHFA Income Limits. For example, in 2025, the limit for Fresno County is $185,000, while the limit for San Diego County is $258,000. CalHFA uses the income calculated by the lender for credit qualifying purposes to determine if you meet these limits. Note that USDA itself often has household income limits, so lenders must ensure compliance with both CalHFA and USDA agency guidelines.

No, manual underwriting is not permitted for the CalHFA USDA program. All loans must be submitted through the Guaranteed Underwriting System (GUS) and must receive an underwriting recommendation of “Accept/Eligible” to be purchased by CalHFA. This differs from the CalHFA FHA program, which allows manual underwriting under specific conditions. If your application does not receive an automated “Accept” finding from GUS, you will not be eligible for this specific CalHFA product.

Yes, manufactured homes are eligible, but they are subject to stricter underwriting guidelines than standard site-built homes. To qualify, the manufactured home must be a double-wide or larger (single-wides are ineligible) and cannot be on a leasehold estate or in a community land trust. The minimum credit score for a manufactured home transaction is 660, and the Debt-to-Income (DTI) ratio is strictly capped at 45.00%, regardless of how high your credit score is. Additionally, the unit must not have had any alterations or additions since leaving the factory.

Yes, you can combine the MyHome Assistance Program with a CalHFA USDA first mortgage. For USDA loans, the MyHome program provides a deferred-payment junior loan of up to 3.00% of the appraised value or sales price, whichever is less. Since the USDA first mortgage allows for 100% financing (zero down), these MyHome funds are typically applied toward your closing costs and prepaid items. The MyHome loan carries a simple interest rate of 1.00% and payments are deferred until the loan is paid off or the home is sold.

The standard minimum credit score for the CalHFA USDA program is 640 for all borrowers on the loan. This applies to single-family residences and condos. However, if you are purchasing a manufactured home, the minimum credit score requirement increases to 660. It is important to note that CalHFA uses the middle score of the lowest-scoring borrower to determine eligibility. Borrowers with no credit score or non-traditional credit histories are not permitted to use this program.

No, the CalHFA USDA first mortgage offers 100% financing, meaning the Loan-to-Value (LTV) ratio can be up to 100% of the property’s value. Because there is no down payment requirement for the first mortgage, borrowers often utilize the MyHome Assistance Program to cover closing costs and prepaid items. The Combined Loan-to-Value (CLTV) ratio, which includes the first mortgage and any subordinate assistance financing, is capped at 105%. This structure allows qualified buyers to enter a home with very little out-of-pocket expense.

Yes, geographic restrictions apply to this program. While CalHFA programs are generally available statewide, the CalHFA USDA program specifically requires that the property be located in a USDA-eligible rural area. You cannot use this loan to purchase a home in a major metropolitan city or an area not designated as rural by the U.S. Department of Agriculture. Lenders must verify the property’s eligibility using USDA maps. However, aside from the rural requirement, there are no specific sales price limits for the property itself, provided the loan amount falls within USDA county limits.