Learn about CalHFA’s financing options and eligibility requirements.
Most people borrow the large amount of money they need to buy a home. This type of borrowing is called a first mortgage loan. There are also mortgage loans that can help out with down payment or closing costs, called junior loans.
CalHFA has first and junior loan options for low to moderate income families, including low to zero interest rate down payment assistance loans. CalHFA does not accept loan applications directly. A CalHFA approved Lender will qualify you for a home loan, so you will need to apply with one of our Preferred Loan Officers or approved Lenders (See Step 2). You can find the details about CalHFA mortgage loans by clicking the “Loan Programs” tab above.
You’ll also want to look at our income limits and other eligibility criteria. You can find out more by clicking on the “Borrower & Property Eligibility” tabs above. Another option is to use our Eligibility Calculator to see what programs are right for you.
Don’t forget to check with your local housing authorities and agencies for other financing options.
Step 2
Talk to a CalHFA Preferred Loan Officer to get pre-qualified for a loan amount.
After determining if you are eligible for a CalHFA home loan, the next step is to speak to a knowledgeable loan officer and get pre-qualified to determine how much of a loan you can afford. You may also use a prequalification calculator to give you an idea of where you stand financially before contacting one of our Preferred Loan Officers. Click on the “Find a Loan Officer” tab above to contact a Loan Officer in your area.
Attend a homebuyer education course if you are a first-time homebuyer.
If you are a first-time homebuyer, and have been pre-qualified, you must attend a homebuyer education course. This education will help you understand the importance and responsibilities of homeownership. In order to obtain a CalHFA home loan, your loan officer must produce your certificate of completion from one of the following entities:
ONLINE: This education is free and online only. Visit calhfadreamforall.com to get signed up and take the course.
Step 4
Start looking for a home.
Talk to a local Realtor to guide you through this process
Once you’ve found a home that fits most of your needs and is in your price range, make an offer through your real estate agent. If your offer is accepted, congratulations! If not, don’t lose heart, and don’t feel pressured into making an offer that’s outside your budget; there are other homes just waiting for the right new owner.
A CalHFA first mortgage generally has a turnaround time at CalHFA of 1-2 business days for compliance review. CalHFA loans have straightforward paperwork, quick processing and dedicated customer service. Many of CalHFA's preferred loan officers have closed CalHFA loans within 30 days.
From application to approval and closing, getting a mortgage can take anywhere from 30 days to 60 days. However, some home purchases can take longer, depending on factors unique to the purchase transaction and the home loan processing time.
While you can make payments on the loan to reduce accrued interest, or principal, no payments are required until the loan is called due, at maturity of the first, sale of the property, transfer of title, a refinance or assumption of the first.
CalHFA Government Loans (FHA): MyHome offers a deferred-payment junior loan of an amount up to the lesser of 3.5% of the purchase price or appraised value to assist with down payment and/or closing costs.
Effective for new reservations on or after January 1, 2024, CalHFA will follow the increased loan limits recently announced by Fannie Mae and FHA. A high balance loan limit fee will be required for all first mortgage loan base amounts that exceed $766,550.
For a bottom-tier home, about $145,000 in annual income is needed to qualify for a mortgage—more than 50 percent higher than median household income in 2022.
Contrary to popular belief, you don't need a 20% down payment to buy a home with a conventional loan — the requirement is 3% down for most lenders. However, if you bring less than 20% to the table during closing, you'll need to pay for private mortgage insurance (PMI) on top of your loan, interest, and insurance.
Conventional loans typically require 3-20% down for a 500k house. Government-backed loans like those from the Federal Housing Administration, VA, and USDA have different down payment requirements. Your down payment affects your monthly payments, interest rates, and additional costs like PMI.
If you will be paying for the home purchase using a mortgage, then you'll need to make sure you have: A good credit score. Lenders typically look for a score above 650. Some lenders will accept lower scores based on the loan program and the borrower's debt-to-income ratio.
How many days before closing do you get mortgage approval? Federal law requires a three-day minimum between loan approval and closing on your new mortgage. You could be conditionally approved for one to two weeks before closing.
How long does it take to get approved for rental assistance once I am selected from the waitlist? Once you have been pulled from the wait list, eligibility determination should take about 60 days.
CalHFA is a program which provides FHA loans for families in California. It not only offers the government FHA loans, but also provides conventional loans backed through private mortgage insurance.
What are the minimum credit score requirements for CalHFA conventional loan programs? The minimum credit score is 660 for borrowers with income less than or equal to HomeReady 80% AMI LI income limit.
The loan is available for first-time home buyers who have a household income of no more than 80% of the median income in their area. For example, if you live in Los Angeles County your household income must be $78,320 or less.
Once the purchase agreement has been signed, the escrow process begins. After this, it might take an average of 30 days or so to get fully approved for a home loan in California.
Completed applications with all required documentation may take several weeks from the date of application submission until a qualified applicant receives the approved funding. The California Mortgage Relief Program is committed to helping homeowners as quickly as possible.
How long does it take to get approved for rental assistance once I am selected from the waitlist? Once you have been pulled from the wait list, eligibility determination should take about 60 days. Please note that it is not possible to determine when your name will come to the top of the waiting list.
What are the minimum credit score requirements for CalHFA conventional loan programs? The minimum credit score is 660 for borrowers with income less than or equal to HomeReady 80% AMI LI income limit.
Introduction: My name is Horacio Brakus JD, I am a lively, splendid, jolly, vivacious, vast, cheerful, agreeable person who loves writing and wants to share my knowledge and understanding with you.
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