CalHFA offers a variety of loan programs for first-time homebuyers.
FIRST MORTGAGE PROGRAMS
Government Insured Loans
CalPLUS FHA Loan Program
The CalPLUS FHA program is an FHA-insured loan featuring a CalHFA fixed interest rate first mortgage. This loan is fully amortized for a 30-year term and is combined with the CalHFA Zero Interest Program (ZIP) for down payment assistance only.
CalHFA FHA Loan Program
The CalHFA FHA program is an FHA-insured loan featuring a CalHFA fixed interest rate first mortgage. This loan is fully amortized for a 30-year term.
Cal-EEM + Grant Program
The Cal-EEM + Grant program combines an FHA-insured Energy Efficient Mortgage first mortgage loan with an additional Cal-EEM Grant, making energy efficient improvements even easier. The interest rate on the Cal-EEM is fixed throughout the 30-year term.
CalPLUS Conventional Loan Program
The CalPLUS Conventional program is a first mortgage loan insured through private mortgage insurance on the conventional market. This loan is fully amortized for a 30-year term and is combined with the CalHFA Zero Interest Program (ZIP) for down payment assistance only. .
CalHFA Conventional Loan Program
The CalHFA Conventional program is a first mortgage loan insured through private mortgage insurance on the conventional market. The interest rate on the CalHFA Conventional is fixed throughout the 30-year term.
DOWN PAYMENT ASSISTANCE PROGRAMS
The money you put “down” or the down payment on your home loan can be one of the largest hurdles for many first-time homebuyers. That’s why CalHFA offers several options for down payment and closing cost assistance. This type of assistance is often called a second or subordinate loan. CalHFA’s subordinate loans are “silent seconds”, meaning payments on this loan are deferred so you do not have to make a payment on this assistance until your home is sold, refinanced or paid in full. This helps to keep your monthly mortgage payment affordable.
California Homebuyer’s Downpayment Assistance Program (CHDAP)
Offers a deferred-payment subordinate loan in the amount of (3%) of the purchase price or appraised value, which ever is less to be used for down payment and/or closing costs.
Extra Credit Teacher Home Purchase Program (ECTP)
Program intended for eligible teachers, administrators, classified employees and staff members working in high priority schools in California. Offers a deferred-payment junior loan of an amount not to exceed the greater of $7,500 or 3% of the sales price or in CalHFA-defined high cost areas an amount not to exceed the greater of $15,000 or 3% of the sales price. Assistance can be used for down payment.
OTHER PARTNERSHIP & PROGRAM OPTIONS
Mortgage Credit Certificate Tax Credit Program (MCC)
A federal credit which can reduce potential federal income tax liability, creating additional net spendable income which borrowers may use toward their monthly mortgage payment. This MCC Tax Credit program may enable first-time homebuyers to convert a portion of their annual mortgage interest into a direct dollar for dollar tax credit on their U.S. individual income tax returns.
<!–Affordable Housing Partnership Program (AHPP)
A joint effort by CalHFA and cities, counties, redevelopment agencies and housing authorities whereby assistance from a locality is utilized by the first-time homebuyer to help them with down payment and/or closing costs.
–>Individual Development Accounts
IDA’s are special savings accounts designed to assist low income borrowers on their path toward ownership of a long-term asset, such as a home, through matched contributions by nonprofit organizations and eligible banks. These organizations may offer up to a 3:1 savings match (i.e., if you save $1,000, you will receive an additional $3,000). To find an organization that offers an IDA program please follow the link above.
HUD – Section 8 Housing Choice Voucher Program
The Section 8 Housing Choice Voucher Program may enable qualified first-time
homebuyers to receive monthly assistance for homeownership expenses in lieu of monthly rent aid. Pursuant to Congressional authority, HUD has authorized states and Public Housing Authorities (PHA’s) to provide this assistance using funds available through the Section 8 rental voucher program.
The PHA’s may choose to participate in offering the Section 8 for homeownership but are not required to do so. Under the Program at least 30% of the eligible homebuyers’ income will go to pay the homeownership expenses with Section 8 covering the remainder.
For additional information:
Utility Energy Efficiency & Solar Programs
California’s various Investor-Owned Utilities (IOUs) and Publicly-Owned Utilities (POUs) offer a variety of Energy-Efficiency and Solar programs designed to assist single-family and multifamily owners in covering or deferring the cost of making their properties go green.
Weatherization Assistance Program
The Weatherization Assistance Program reduces the heating and cooling costs for low-income families by improving the energy efficiency of their homes and ensuring their health and safety. Among low-income households, the program focuses on those with elderly residents, individuals with disabilities, and families with children.