CalPLUS Conventional

Yes, education is mandatory. At least one occupying first-time homebuyer on the loan must complete a homebuyer education course. This course can be taken online through eHome or via in-person/virtual counseling with a HUD-approved Housing Counseling Agency or NeighborWorks America. The completion certificate is valid for one year. This requirement ensures borrowers fully understand the financial commitment of the mortgage and the specific repayment terms of the subordinate financing (ZIP and MyHome) they are receiving.

Generally, no, unless you pay off the assistance. CalHFA has a strict policy regarding “subordination,” which is the process of allowing a second loan to stay in place while you refinance the first one. For the CalPLUS Conventional program (including ZIP and MyHome), CalHFA typically does not allow subordination for a standard refinance. This means if you want to refinance in the future to get a lower interest rate, you must have enough equity or cash to pay off the first mortgage, the ZIP loan, and the MyHome loan in full.

Payments on both the ZIP loan (closing costs) and the MyHome loan (down payment) are deferred for the life of the first mortgage. This means you make no monthly payments on them. However, the full principal balance (plus 1% simple interest for MyHome; 0% for ZIP) becomes due and payable when a “trigger event” occurs. These events include selling the property, transferring the title, paying off the first mortgage in full, or refinancing the first mortgage. You must be prepared to pay these off when you exit the loan.

You can use the CalPLUS Conventional loan to purchase a single-family one-unit residence, which includes approved condominiums and Planned Unit Developments (PUDs). Manufactured homes are also eligible, provided they are double-wide or larger and meet Fannie Mae “MH Advantage” or “Standard MH” guidelines. For manufactured homes, the maximum Debt-to-Income (DTI) ratio is capped at 45.00%, and leasehold estates are generally not permitted. Ineligible properties include 2-4 unit homes, co-ops, and properties with PACE liens.

Yes. Because the CalPLUS Conventional program utilizes subordinate financing (the ZIP loan and typically MyHome), all borrowers must meet the definition of a first-time homebuyer. CalHFA defines a first-time homebuyer as someone who has not held an ownership interest in a principal residence (a home you lived in) or resided in a home owned by a spouse during the three years prior to the purchase. If you are married, your spouse generally must also meet this requirement or not have an ownership interest in a principal residence.

Yes, all CalHFA programs enforce strict income limits to ensure they serve low-to-moderate income households. The total income of all borrowers cannot exceed the CalHFA Income Limits for the county where the property is located. For example, in 2025, the limit for Alameda and Contra Costa counties is $316,000, while the limit for Los Angeles is $211,000. Lenders calculate income using Fannie Mae guidelines for “credit qualifying” purposes. Income that is not used to qualify for the loan (e.g., from a non-borrowing spouse) generally does not count toward the program cap.

The standard minimum credit score for the CalPLUS Conventional program is 680. However, there is an exception for lower-income borrowers. If your qualifying income is less than or equal to the “HomeReady” 80% Area Median Income (AMI) limit, you may qualify with a minimum credit score of 660. Lenders determine eligibility based on the middle credit score of the lowest-scoring borrower on the application. Borrowers with no credit score are not eligible, and manual underwriting (approving a loan without an automated system recommendation) is not permitted.

Yes. While the ZIP loan covers your closing costs, the CalPLUS Conventional loan can be layered with the MyHome Assistance Program to cover your down payment. MyHome provides a deferred-payment subordinate loan of up to 3% of the lesser of the sales price or appraised value. By using both programs, you can effectively stack three loans: the first mortgage (up to 97% LTV), the MyHome loan (3% for down payment), and the ZIP loan (2-3% for closing costs), significantly reducing your out-of-pocket expenses.

The Zero Interest Program (ZIP) is a mandatory junior loan included with the CalPLUS Conventional package. It provides you with funds equal to either 2.00% or 3.00% of your first mortgage loan amount. As the name suggests, the interest rate on this loan is 0.00%. Crucially, ZIP funds are restricted to paying for closing costs and prepaid items (such as taxes and insurance); they generally cannot be used to fund the down payment or pay off debts. Payments on the ZIP loan are deferred, meaning you do not make monthly installments.

The CalPLUS Conventional program is a home financing package designed specifically for first-time homebuyers. It combines a 30-year fixed-rate first mortgage (Fannie Mae HFA Preferred) with the CalHFA Zero Interest Program (ZIP). While the first mortgage covers the majority of the home purchase, the ZIP loan provides funds specifically to cover your closing costs and prepaid items. This structure allows borrowers to secure a conventional loan with competitive terms while minimizing the upfront cash required to close the transaction. Unlike the standard CalHFA Conventional loan, the CalPLUS version must be paired with the ZIP assistance.