CALHFA Homebuyer Guide

CalHFA Financing: Your Guide to Affordable Home Loans in California

Buying a home in California is expensive, but CalHFA financing helps make it more affordable. Whether you’re a first-time buyer needing down payment assistance, a veteran seeking zero-down financing, or someone looking to use California’s Dream For All shared appreciation program, there’s a CalHFA loan for you.

This guide breaks down CalHFA’s loan programs, explains how they work, and helps you determine if one is right for you. Let’s get started!

What Is CalHFA Financing?

The California Housing Finance Agency (CalHFA) offers low-interest mortgages, down payment assistance, and closing cost support to first-time homebuyers. These programs aim to make homeownership more accessible by lowering upfront costs.

Unlike traditional mortgages, CalHFA loans include built-in financial assistance. Buyers can use these funds for down payments, closing costs, or both. Approved mortgage lenders, such as New Way Mortgage, offer these loans—not CalHFA directly.

👉 Need help finding the right loan? Call or text 916-465-6639, or apply online HERE.

CalHFA Loan Programs

Several mortgage options exist under the CalHFA umbrella, including conventional loans, government-backed loans, and financial assistance programs.

1. CalHFA Conventional Loan

A CalHFA Conventional Loan is a 30-year, fixed-rate mortgage backed by Fannie Mae’s HomeReady program. Buyers with good credit but limited savings benefit the most.

✅ Minimum Credit Score: 660+
✅ Down Payment: As low as 3%
✅ Income Limits: Must meet CalHFA’s county-specific limits (Check Here)

💡 Tip: Pairing this loan with CalHFA’s down payment assistance programs can minimize upfront costs.

2. CalHFA FHA Loan

A CalHFA FHA loan is government-backed and easier to qualify for than a conventional mortgage. Buyers with lower credit scores and smaller down payments may find this option attractive.

✅ Minimum Credit Score: 660+ (or 640+ with additional requirements)
✅ Down Payment: 3.5% (assistance available)
✅ Debt-to-Income (DTI) Ratio: Up to 45% (50% with strong credit)

💡 Why consider this loan? It has lower down payment requirements and more flexible approval criteria.

3. CalHFA VA Loan (For Veterans & Military Families)

Veterans, active-duty service members, and eligible surviving spouses can buy a home with zero down payment using a CalHFA VA loan.

✅ Minimum Credit Score: 640+
✅ Down Payment: 0% (no down payment needed!)
✅ No Mortgage Insurance (PMI)

💡 Why choose this loan? No down payment, no PMI, and lower interest rates make it an excellent choice for those who qualify.

📞 Veteran? We can help! Call 916-465-6639 today!

4. CalHFA Dream For All Program (Shared Appreciation Loan)

The Dream For All program helps buyers afford a home without adding extra monthly payments. It covers up to 20% of the purchase price as a down payment loan. In exchange, homeowners repay the loan plus a share of their home’s appreciation when they sell or refinance.

✅ Loan Amount: Up to 20% of the home’s purchase price
✅ Repayment: Borrowers repay the loan plus a portion of the home’s appreciation upon sale or refinance
✅ Income Limits Apply (Check Here)

💡 Best for: Buyers needing down payment help but wanting to build equity.

🚀 Want to know more? Call 916-465-6639!

CalHFA Down Payment Assistance Programs

Two major assistance programs help buyers reduce upfront costs.

1. MyHome Assistance Program

This silent second mortgage provides up to 3.5% of the purchase price for down payment or closing costs.

✅ No monthly payments required
✅ Works with Conventional, FHA, VA, & USDA loans
✅ Can be paired with the CalHFA ZIP program

2. ZIP (Zero Interest Program)

The ZIP program covers closing costs with a 0% interest loan so that buyers need less upfront cash.

✅ Loan amount: Up to 3% of the total mortgage loan
✅ No monthly payments required
✅ Can be combined with MyHome Assistance

📞 Want to see if you qualify? Call 916-465-6639 today!

How to Apply for a CalHFA Loan

Working with an approved mortgage broker like New Way Mortgage simplifies the process. Here’s what to expect:

🔹 Pre-Approval – Call 916-465-6639 or apply online HERE.
🔹 Find the Best Loan – Our team matches you with the right CalHFA program.
🔹 Submit Your Application – We handle the paperwork and guide you through approval.
🔹 Close on Your Home! – Move in and start building equity!

Final Thoughts: Is CalHFA Financing Right for You?

CalHFA programs make homeownership possible for first-time buyers. Whether you need low down payment options, closing cost assistance, or shared appreciation financing, there’s a loan designed for you.

🚀 Ready to get started?

🔹 Call or text 916-465-6639 to speak with a loan expert.
🔹 Apply online today HERE.
🔹 Subscribe to our YouTube channel for mortgage tips: www.newwayhome.com.

Let’s get you into your dream home with the best financing available! 🏡💙