CalPLUS FHA Loan Program: Your Path to Affordable Homeownership in California
1. Introduction
If you’re a first-time homebuyer in California, you may be worried about the high cost of purchasing a home. Between the down payment and closing costs, saving enough can feel impossible.
Enter the CalPLUS FHA loan program from CalHFA! This program not only provides a low down payment option but also includes closing cost assistance through the Zero Interest Program (ZIP).
Let’s break it down and see how this loan could be the perfect fit for you!
2. What Is the CalPLUS FHA Loan?
The CalPLUS FHA loan is a 30-year fixed-rate FHA loan offered through CalHFA. It’s exclusively for first-time homebuyers and comes with a key benefit:
✅ Zero Interest Program (ZIP) for closing cost assistance
This makes it different from the standard CalHFA FHA loan, which doesn’t include ZIP.
3. Why Choose a CalPLUS FHA Loan?
So why is this loan such a great deal?
- Low 3.5% down payment – Easier entry into homeownership
- Easier credit requirements – FHA loans allow lower credit scores than conventional loans
- Fixed-rate mortgage – Stability in your monthly payments
- Closing cost assistance through ZIP – Helps reduce upfront expenses
If you’re short on cash for closing costs, this program can make all the difference!
4. How Does the CalPLUS FHA Loan Work?
Here’s how the CalPLUS FHA loan functions:
✔ Loan Term: 30-year fixed-rate mortgage
✔ Down Payment: Minimum 3.5% (can use MyHome assistance)
✔ Closing Cost Assistance: ZIP provides either 2% or 3% of the loan amount
✔ Mortgage Insurance: Required (upfront & annual MIP)
The interest rate is slightly higher than the standard CalHFA FHA loan due to ZIP assistance.
5. Down Payment & Closing Cost Assistance
The CalPLUS FHA loan offers two major financial assistance programs:
1. MyHome Assistance Program
💰 Provides up to 3.5% of the purchase price
💰 Can be used for the down payment or closing costs
💰 Deferred payments (no payments until sale, refinance, or payoff)
2. ZIP (Zero Interest Program) – Exclusive to CalPLUS FHA
💰 Provides 2% or 3% of the loan amount for closing costs
💰 0% interest, deferred payments
💰 Only available with CalPLUS FHA (not CalHFA FHA)
These two programs significantly lower your upfront costs!
6. Who Qualifies for a CalPLUS FHA Loan?
To be eligible, you must meet these requirements:
✔ First-Time Homebuyer – No homeownership in the past 3 years
✔ Minimum Credit Score: 660+ (or 680+ with MyHome assistance)
✔ Income Limits: Must be within CalHFA’s county-specific income limits
✔ DTI Ratio: Cannot exceed 45% (or 43% if using MyHome assistance)
7. Property Eligibility
🏠 Must be in California
🏠 Single-family homes, condos, or approved manufactured homes
🏠 Owner-occupied only (no investment properties)
8. Loan Limits and Income Restrictions
- Must stay within FHA loan limits for your county
- Income must be below CalHFA’s county-specific caps
9. How to Apply for a CalPLUS FHA Loan
1️⃣ Find a CalHFA-Approved Lender
2️⃣ Get Preapproved
3️⃣ Complete a Homebuyer Education Course
4️⃣ Submit Your Loan Application
5️⃣ Close on Your Home
10. Pros and Cons of the CalPLUS FHA Loan
✅ Pros:
✔ Down payment and closing cost assistance
✔ Easier credit score requirements
✔ Fixed interest rate
❌ Cons:
❌ Mortgage insurance required
❌ Higher interest rate than standard FHA loans
11. CalPLUS FHA vs. Standard CalHFA FHA Loan
| Feature | CalPLUS FHA Loan | CalHFA FHA Loan |
|---|---|---|
| ZIP Closing Cost Assistance | ✅ Yes | ❌ No |
| Interest Rate | 🔺 Slightly Higher | 🔽 Lower |
| Down Payment Assistance | ✅ Yes | ✅ Yes |
4. FAQs About the CalPLUS FHA Loan
❓ 1. What is the minimum credit score for a CalPLUS FHA loan?
✔ You need at least a 660 credit score (or 680 if using MyHome assistance).
❓ 2. How does the ZIP program work?
✔ The Zero Interest Program (ZIP) provides either 2% or 3% of the loan amount for closing costs.
✔ It’s a 0% interest loan with no required payments until you sell, refinance, or pay off your mortgage.
✔ Only available with CalPLUS FHA (not standard CalHFA FHA).
❓ 3. Do I need to be a first-time homebuyer?
✔ Yes. You must be a first-time homebuyer, which means you haven’t owned a home in the past three years.
❓ 4. Are there specific lenders for this loan?
✔ Yes. You must work with a CalHFA-approved lender to apply for a CalPLUS FHA loan.
❓ 5. How long does it take to close on a CalPLUS FHA loan?
✔ Most buyers close within 30-45 days, but it depends on the lender, paperwork, and loan approval process.
🚀 Ready to Apply? Let’s Get Started!
📞 Call or Text: 916-465-6639
📧 Email: hello@newwaymortgage.com
📅 Schedule an Appointment: www.meetnewway.com
📝 Apply Now: Click HERE to Apply
🎥 Watch & Subscribe on YouTube: www.newwayhome.com
Don’t wait! Get preapproved today and start your journey to homeownership! 🏡🚀
