Specifics requirements for conventional, FHA,VA and USDA

Yes, CalHFA offers 100% financing options through its VA and USDA government loan programs. Both the CalHFA VA and CalHFA USDA first mortgages allow for a Loan-to-Value (LTV) ratio of 100%, meaning no down payment is required from the borrower. Because there is no down payment requirement, borrowers using these programs typically utilize the MyHome Assistance Program (offering 3% of the loan amount) to pay for closing costs and prepaid items. Conversely, CalHFA FHA loans require a 3.5% down payment (96.5% LTV), and Conventional loans require 3% down (97% LTV).

No, the income limits are generally uniform across all CalHFA programs for a given county. The total qualifying income of all borrowers must not exceed the published CalHFA Income Limits for the county where the property is located. For example, in 2025, the limit is $211,000 for Los Angeles County and $239,000 for Sacramento County. Lenders calculate your income using standard investor guidelines (Fannie Mae for Conventional, FHA/VA/USDA for Government). It is important to note that CalHFA uses the income calculated for credit qualifying to determine eligibility, not necessarily total household income.

For CalHFA Conventional loans, borrowers who fall under the “Low Income” (LI) threshold receive specific underwriting advantages. If your income is less than or equal to 80% of the Area Median Income (AMI) (verified using Fannie Mae’s HomeReady Lookup tool), you qualify for a reduced minimum credit score of 660, compared to the standard 680 requirement. Additionally, these borrowers are eligible for reduced mortgage insurance (MI) coverage rates, which lowers the monthly payment. This contrasts with government loans, which generally do not offer tiered credit score requirements based on AMI.

Yes, CalHFA offers specific accommodations for victims of disasters through the FHA Section 203(h) program. This program is available to borrowers whose previous primary residence was destroyed or declared uninhabitable in a Presidentially Declared Major Disaster Area. Key benefits include 100% financing (zero down payment) and a waiver of the first-time homebuyer requirement. However, specific restrictions apply: the maximum DTI is capped at 45.00%, manual underwriting is not allowed, and you cannot purchase a manufactured home or a reconstruction property using this program.

No, CalHFA programs have stricter occupancy rules than standard FHA or Conventional loans. For all CalHFA programs—including Conventional, FHA, VA, and USDA—non-occupant co-borrowers and non-occupant co-signers are not permitted. Every person listed on the loan application must intend to occupy the property as their primary residence within 60 days of closing. This rule ensures that the state’s assistance funds are directed solely toward individuals and families who will actually live in the homes being financed, rather than investors or borrowers relying on outside guarantees.

The amount of assistance you can borrow through the MyHome Assistance Program depends on your first mortgage type. If you choose an FHA loan, MyHome provides up to 3.50% of the sales price or appraised value, which covers the full FHA down payment requirement. If you choose a Conventional, VA, or USDA loan, the MyHome assistance is capped at 3.00% of the sales price or appraised value. For Conventional loans, this covers the minimum 3% down payment. For VA and USDA loans, which offer 100% financing, this 3% is typically used to cover closing costs.

Manual underwriting is highly restricted within CalHFA programs. It is not permitted for CalHFA Conventional, VA, or USDA loans; these must receive an “Approve/Eligible” or “Accept” recommendation from an automated underwriting system. The only exception is the CalHFA FHA program, which allows manual underwriting under strict conditions. To qualify for a manual underwrite on an FHA loan, you must have a minimum credit score of 660 and a maximum DTI ratio of 43.00%. Manual underwriting is explicitly prohibited for manufactured homes and disaster recovery loans (Section 203h).

Yes, but restrictions vary by loan type. You can purchase a manufactured home using CalHFA FHA, USDA, or Conventional loan programs, provided the home is a double-wide or larger; single-wide homes are not eligible. These loans require a minimum credit score of 660 and a maximum DTI of 45.00%. However, you cannot use the CalHFA VA program to purchase a manufactured home. Additionally, leasehold estates (where you rent the land) are generally not permitted for manufactured homes; the home must be on a permanent foundation on land you own.

CalHFA utilizes a tiered approach to Debt-to-Income (DTI) ratios based on your credit score to ensure affordability. Across Conventional, FHA, VA, and USDA programs, if your credit score is 700 or higher, you are generally allowed a maximum DTI of 50.00%. If your credit score falls below 700 (specifically 640–699 for Government or 680–699 for Conventional), your DTI is capped at 45.00%. Furthermore, regardless of your credit score, if you are purchasing a manufactured home, your DTI is strictly capped at 45.00%, and FHA manually underwritten loans are capped even lower at 43.00%.

The minimum credit score requirements differ significantly between program types. For CalHFA Government loans, including FHA, VA, and USDA, the standard minimum credit score is 640. However, if you are using an FHA loan with manual underwriting or purchasing a manufactured home, the minimum score increases to 660. For CalHFA Conventional loans, the standard minimum credit score is higher at 680. There is an exception for low-income borrowers: if your income is less than or equal to 80% of the Area Median Income (AMI), you may qualify for a Conventional loan with a reduced score of 660.