CalPLUS Conventional Loan from CalHFA: A First-Time Buyer’s Best Friend
Buying a home in California isn’t cheap—let’s be real, it’s expensive! But if you’re a first-time homebuyer, the CalPLUS Conventional Loan from CalHFA could be your golden ticket to homeownership. With down payment assistance and zero-interest closing cost help, it’s designed to make your dream home more affordable.
Curious? Let’s break it all down.
What Is the CalPLUS Conventional Loan?
The CalPLUS Conventional Loan is a fixed-rate mortgage program backed by the California Housing Finance Agency (CalHFA). It’s specifically designed for first-time homebuyers who need help with their down payment and closing costs.
What makes it stand out?
✅ Lower interest rates compared to traditional loans
✅ Assistance programs for down payment and closing costs
✅ No-interest loan for closing costs through ZIP
Basically, if you’re looking to buy a home in California, this loan could be a game-changer.
CalHFA: Making Homeownership Possible
So, what is CalHFA? It’s a state agency that helps low- and moderate-income Californians buy homes by offering affordable loan programs.
Their mission? Make homeownership possible for more people.
How do they do it?
- Offering competitive interest rates
- Providing down payment assistance
- Partnering with approved lenders to help you buy a home
In short, CalHFA is here to help you afford a home in California—which, let’s be honest, is no small feat!
Key Benefits of the CalPLUS Conventional Loan
Here’s why this program is so popular among first-time buyers:
🔹 Lower Interest Rates
The CalPLUS Conventional Loan offers competitive rates, making your monthly mortgage payments more affordable.
🔹 MyHome Assistance Program
Need help with a down payment? MyHome provides up to 3% of the loan amount to assist with that big upfront cost.
🔹 ZIP (Zero Interest Program)
Closing costs can be a killer—but ZIP covers them with a zero-interest loan. That means no extra monthly payments until you sell or refinance.
Who Qualifies for the CalPLUS Conventional Loan?
Not everyone can get this loan. Here’s what you need to qualify:
✅ First-time homebuyer (can’t have owned a home in the last 3 years)
✅ Credit score of at least 660
✅ Meet income limits (varies by county)
✅ Home must be your primary residence
Good credit and stable income? You’re already on the right track!
How the MyHome Assistance Program Works
This is a BIG deal—CalHFA offers up to 3% of your loan amount for a down payment or closing costs.
💡 Example: Buying a $500,000 home? MyHome could provide $15,000 in assistance!
The best part? It’s a low-interest second loan that you don’t have to repay until you sell, refinance, or pay off your mortgage.
The ZIP Program: Free Money for Closing Costs
Ever heard of “free money” for closing costs? Well, the Zero Interest Program (ZIP) is just that.
✅ Covers closing costs
✅ No interest and no monthly payments
✅ Only repaid when you sell or refinance
Translation? You keep more cash in your pocket when you buy!
Property Requirements: What Homes Qualify?
🏡 Eligible properties include:
✔ Single-family homes
✔ Condos
✔ Some manufactured homes
🚫 Not allowed:
✖ Second homes
✖ Investment properties
Remember, you must live in the home—this isn’t for rental properties!
Loan Limits & Income Caps
🔹 Maximum loan amount: $766,550 (varies by county)
🔹 Income limits: Changes by region (check CalHFA’s site for details)
Earning too much? You may not qualify. But if your income is moderate, you’re in luck!
Interest Rates & Mortgage Insurance
💰 Fixed interest rate = consistent payments
📌 Mortgage insurance required (but can be removed after 20% equity)
How to Apply for a CalPLUS Conventional Loan
1️⃣ Check if you qualify (income, credit score, first-time buyer)
2️⃣ Find a CalHFA-approved lender
3️⃣ Get preapproved
4️⃣ Submit loan application & documents
5️⃣ Close on your new home!
💡 Tip: Get preapproved HERE to start your journey today!
Pros & Cons of CalPLUS Conventional
✅ Pros:
✔ Lower down payment
✔ Closing cost assistance
✔ Competitive interest rates
❌ Cons:
✖ Must repay assistance if you sell/refinance
✖ Income limits apply
Still worth it? Absolutely!
Final Thoughts: Is CalPLUS Conventional Right for You?
If you’re a first-time homebuyer in California, the CalPLUS Conventional Loan is one of the best options out there. It helps you afford a home with less upfront cash, making homeownership a reality—even in California’s wild market!
Want to see if you qualify? 👉 Talk to an expert today!
📞 Call or text: 916-465-6639
📧 Email: hello@newwaymortgage.com
📅 Schedule an appointment: HERE
And don’t forget—subscribe to our YouTube channel for more home-buying tips! 🎥🏡
FAQs
❓ Can I use the CalPLUS Conventional Loan if I’m not a first-time buyer?
No, this program is for first-time homebuyers only.
❓ How long does it take to get approved?
It varies, but preapproval can happen in a few days.
❓ Can I combine CalPLUS with other assistance programs?
Yes! MyHome and ZIP can both be used with it.
❓ Do I have to pay back the ZIP loan?
Only when you sell or refinance.
❓ What’s the biggest advantage of CalPLUS Conventional?
The closing cost help—it saves you thousands upfront!
