MyHome Assistance

Generally, no. CalHFA’s policy typically requires that subordinate loans, including MyHome, be paid off if you refinance your first mortgage. Repayment is triggered by the “refinance of the first loan” or the “payoff of the first loan”. While CalHFA does have a specific subordination policy for the Dream For All program, standard MyHome loans usually do not have an automatic subordination option for voluntary refinances. This means if you want to lower your rate on the first mortgage later, you must have enough equity or cash to pay off the MyHome balance (principal plus accrued interest) in full.

While customary third-party closing costs (like title and recording fees) apply, CalHFA strictly limits the fees lenders can charge specifically for processing the MyHome loan. The lender is permitted to charge a maximum processing fee of $250 for the MyHome transaction. This is separate from the origination fees allowed on the first mortgage (which are capped at the greater of 3% or $3,000). Borrowers should review their Loan Estimate and Closing Disclosure to ensuring they are not being charged lender fees in excess of this $250 cap for the subordinate financing portion of their loan package.

The MyHome loan charges 1.00% simple interest, which is significantly different from compound interest. Simple interest is calculated solely on the original principal amount borrowed, without compounding on previously accrued interest. For example, if you borrow $10,000, the interest accrues at $100 per year. After 10 years, you would owe the original $10,000 plus 1,000ininterest(100 x 10 years). This structure keeps the total debt accumulation predictable and lower than typical credit products. This accrued interest is deferred along with the principal until the loan is paid off.

Yes, eligibility for MyHome is subject to strict income limits based on the county where the property is located. The total qualifying income of all borrowers must not exceed the published CalHFA Income Limits. For example, in 2025, the limit for Alameda County is $316,000, while for Fresno County it is $185,000. Lenders calculate your income using standard investor guidelines (credit qualifying income). Importantly, income that is not used for credit qualifying purposes is generally not counted toward these program limits, meaning a household member’s income is excluded if they are not on the loan.

Yes, MyHome is designed to be “stacked” with other down payment assistance to maximize your buying power. For instance, if you choose a CalPLUS first mortgage (FHA or Conventional), you can combine MyHome (for your down payment) with the Zero Interest Program (ZIP) (for your closing costs) or the MyAccess loan. In these scenarios, MyHome must be recorded in the second lien position, with the other assistance (ZIP or MyAccess) placed in the third lien position behind it. However, you cannot combine MyHome with the Dream For All Shared Appreciation Loan.

The MyHome loan has a term that matches your first mortgage, typically 30 years. Because payments are deferred, you are not required to pay principal or interest on a monthly basis. The loan accrues simple interest at a rate of 1.00%. Repayment of the full principal balance plus all accrued interest is required upon the occurrence of a “trigger event.” These events include the sale of the property, transferring the title to another person, refinancing your first mortgage, or paying off the first mortgage in full. If none of these happen earlier, the loan is due at the end of the 30-year term.

MyHome funds are specifically restricted to down payment assistance and/or closing costs. This makes the program highly versatile, allowing you to apply the money where it is needed most in your transaction. For example, you can use it to satisfy your minimum down payment requirement to get into the home or to pay for title and escrow fees. However, the funds cannot be used to pay off borrower debt (like credit cards or student loans) to help you qualify, and you are strictly prohibited from receiving any cash back from the MyHome loan proceeds at closing.

To qualify for MyHome, you must be a First-Time Homebuyer. CalHFA defines this as someone who has not held an ownership interest in a principal residence in the three years prior to the loan application. This requirement applies to all borrowers and co-borrowers who will reside in the home. However, there are exceptions for borrowers using the FHA Section 203(h) program for disaster victims or HUD Section 184 Indian Home Loan Guarantee Program. Additionally, you must be a U.S. citizen, permanent resident, or a “Qualified Alien” and meet the credit and income requirements of the first mortgage program.

The amount of assistance available through MyHome depends on the type of first mortgage you select. If you are using an FHA loan, MyHome offers up to 3.50% of the sales price or appraised value (whichever is less), which is sufficient to cover the minimum FHA down payment requirement. For Conventional, VA, or USDA loans, the assistance is capped at 3.00% of the sales price or appraised value. This 3% can cover the minimum down payment for a Conventional loan or help with closing costs for VA/USDA loans, which often allow 100% financing.

The MyHome Assistance Program is a deferred-payment junior loan designed to help first-time homebuyers with the upfront costs of purchasing a home. It provides a subordinate loan that can be used for your down payment and/or closing costs. Structurally, it is not a grant but a loan carrying a simple interest rate of 1.00%. Repayment is deferred, meaning you do not have to make monthly payments on this specific loan while you live in the home. Instead, the principal and accrued interest are paid in a lump sum when the loan reaches maturity or a specific trigger event occurs.