CalHFA Loan Programs: Who is eligible and what properties are eligible

CalHFA programs are available statewide, meaning you can generally purchase a property anywhere within the State of California. There are no specific “targeted areas” required for the standard Conventional or FHA products. However, if you are utilizing the CalHFA USDA program, the property must be located in a USDA-eligible rural area as defined by the U.S. Department of Agriculture. For all other programs, as long as the property meets the eligible type criteria (SFR, Condo, PUD) and is within California borders, it is geographically eligible for CalHFA financing.

Yes, it is possible to qualify for CalHFA programs even if you currently own a rental property, provided you meet the First-Time Homebuyer definition. You must prove that you have not occupied that rental property (or any other property you own) as your principal residence in the last three years. To prove this, lenders will typically require documentation such as 36 months of cancelled rent checks for your current residence, a Verification of Rent (VOR) from a management company, or utility bills showing you resided elsewhere. This ensures the program targets genuine first-time occupants.

No. All CalHFA loan programs are strictly for owner-occupied primary residences only. Investors and borrowers seeking vacation homes are not eligible. All borrowers listed on the Note and Deed of Trust must occupy the property as their principal residence within 60 days of closing. Furthermore, CalHFA strictly prohibits “non-occupant co-borrowers” or “non-occupant co-signers”. This means you cannot have a parent or relative co-sign your loan to help you qualify if they do not intend to live in the property with you.

No, CalHFA does not impose specific sales price limits on the properties you can purchase. However, you are constrained by the Maximum Loan Limits set by the Federal Housing Finance Agency (FHFA) for Conventional loans or FHA/VA/USDA limits for government loans. While you can buy a more expensive home, your loan amount cannot exceed these federal caps. For example, if you buy a home that exceeds the conforming loan limit, you may be subject to “High Balance” loan fees, and you will need to cover the difference with a larger down payment.

Yes, properties with Accessory Dwelling Units (ADUs), such as granny flats or in-law quarters, are eligible for CalHFA financing. The property must be legally classified as a one-unit single-family residence with an accessory unit; two-to-four unit properties (like duplexes) are not eligible. The ADU must comply with all local zoning and building codes. Importantly, if you use rental income from the ADU to help qualify for the loan (credit qualifying), CalHFA will include that gross rental income when calculating your total income to ensure you do not exceed the county Income Limits.

The Dream For All Shared Appreciation Loan has a stricter eligibility standard than standard programs. At least one borrower must be a “First-Generation Homebuyer.” This means the borrower has not held an ownership interest in a home in the U.S. in the last seven years. Furthermore, to the best of the borrower’s knowledge, their parents (biological or adoptive) must not currently own a home in the U.S. or have owned one at the time of their death. Former foster youth or individuals who were in institutional care also qualify under this definition, regardless of their parents’ homeownership status.

Yes, but specific restrictions apply. Condominiums are eligible if they meet the approval guidelines of the investor (Fannie Mae for Conventional, FHA/VA for Government loans). Manufactured homes are permitted on CalHFA Conventional, FHA, and USDA loans, provided they are double-wide or larger (single-wides are ineligible) and placed on a permanent foundation. However, manufactured homes are not eligible under the CalHFA VA program. Additionally, leasehold estates (where you own the home but rent the land) are generally prohibited for manufactured homes.

Yes, non-U.S. citizens can qualify, provided they meet specific legal residency requirements. To be eligible, each borrower must be either a U.S. citizen, a permanent resident, or a “Qualified Alien” as defined by federal statute 8 U.S.C § 1641. Borrowers must be lawfully present in the United States and able to provide acceptable visa evidence or Employment Authorization Documents (EAD) issued by USCIS. For example, borrowers with DACA status (Deferred Action for Childhood Arrivals) are permitted if they have a valid Social Security Number and employment authorization. The requirements apply to all borrowers on the loan.

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. Crucially, CalHFA uses the “credit qualifying” income calculated by your lender to determine eligibility, rather than the total gross income of the entire household. This means that income from household members not listed on the loan application is generally excluded from the calculation. However, lenders cannot remove a borrower or exclude income solely to fit within these limits; the income used must follow standard investor guidelines.

To qualify for most CalHFA programs, particularly those offering subordinate down payment assistance, all borrowers on the loan must meet the definition of a first-time homebuyer. This does not strictly mean you have never owned a home before. Instead, CalHFA defines a first-time homebuyer as someone who has not held an ownership interest in a principal residence (a home they lived in) during the three-year period prior to executing the new mortgage loan documents. This includes ownership interests held by a spouse. If you owned a rental property but never lived in it, or if you owned a home more than three years ago, you may still qualify.