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Step-by-Step Guide to Getting a CalHFA Mortgage in California

Purchasing a home in California can feel like an impossible dream for many due to high upfront costs, elevated interest rates, and stringent credit requirements. If you’re a first-time home buyer, the uncertainty surrounding homeownership might feel overwhelming, and you might be wondering if you’ll ever qualify for a mortgage. The good news is that CalHFA is here to help. Whether you’re concerned about your credit score, struggling with down payment assistance, or feeling lost in the complicated process, CalHFA offers a clear and accessible solution for many would-be homebuyers.

Thanks to CalHFA’s loan programs, you can access affordable financing options and explore down payment assistance that make owning a home in California more achievable than you might have thought. This guide will walk you through CalHFA’s requirements, loan types, and how to apply, helping you move past the common hurdles that prevent people from becoming homeowners.

What is CalHFA and How Can It Help You?

If you’ve been struggling with the high costs of homeownership in California, you’re not alone. Many buyers face the same issues: high mortgage rates, expensive down payments, and tough credit requirements. The good news is that the California Housing Finance Agency (CalHFA) offers programs that can significantly ease this burden.

CalHFA provides low-interest loans, down payment assistance programs, and special mortgage options tailored to first-time homebuyers. This means you don’t have to struggle with traditional, expensive mortgage routes. Instead, you can access affordable financing that makes buying a home in California a much more attainable goal.

Hispanic family of four and an advisor reviewing CalHFA housing documents in an office.

For many, purchasing a home is a dream, but CalHFA makes it a reality by providing the financial tools and guidance necessary to navigate the complicated landscape of home buying.

CalHFA’s Impact: Real Numbers and Success Stories

Understanding the tangible impact of CalHFA can help alleviate concerns about its effectiveness and accessibility.

Dream For All Program: In 2024, CalHFA allocated $300 million to assist first-time homebuyers through the Dream For All program. Remarkably, all funds were utilized within just 11 days, demonstrating the high demand and trust in CalHFA programs.
Homebuyer Assistance: The MyHome Assistance Program offers deferred-payment junior loans up to 3.5% of the purchase price or appraised value for FHA loans, and up to 3% for conventional loans, assisting with down payment and closing costs.
Loan Volume: In the fiscal year 2022-2023, CalHFA provided over $2.8 billion in first mortgage purchases and $304.9 million in subordinate lending for down payment assistance and closing costs.

These figures highlight CalHFA’s significant role in making homeownership more accessible for Californians.

How to Qualify for a CalHFA Mortgage in California

If you’re ready to take the leap into homeownership, you may be wondering: How do I qualify for a CalHFA mortgage? The application process for a CalHFA loan might seem intimidating, but it’s designed to make homeownership more accessible. Here’s a step-by-step guide to help you understand the CalHFA requirements:

First-time homebuyers

Applicants must be first-time homebuyers, defined as individuals who have not owned and occupied their own home in the last three years.

Income Limits

CalHFA sets income limits based on the county and household size. For instance, in San Francisco County, a single-person household can earn up to $228,300 and still qualify.

County	Income Limit (1-2 people)	Income Limit (3+ people)
Los Angeles	$102,000	$119,000
San Francisco	$135,000	$157,000
Sacramento	$90,000	$105,000

Credit Score

One of the main concerns for many buyers is whether their credit score will disqualify them from a mortgage. CalHFA typically requires a minimum credit score of 640 for most loan programs. If your credit score is below this threshold, don’t worry: you may still qualify for certain CalHFA programs, but it’s a good idea to work on improving your score before applying.

Homebuyer Education

Completion of a homebuyer education course is mandatory for all applicants.

By meeting these criteria, you can access the supportive programs CalHFA offers to make homeownership more attainable.

Understanding CalHFA Interest Rates

Concerns about high-interest rates can be a significant barrier to homeownership. CalHFA addresses this by offering competitive rates.

Current Rates: As of July 2025, CalHFA offers various loan programs with interest rates ranging from 6.375% for FHA loans to 7.625% for certain conventional loans with down payment assistance.
Program Variations: Rates vary depending on the loan type and assistance program. For example, the CalPLUS FHA program includes a 2% or 3% Zero Interest Program for closing costs, affecting the overall rate.

These competitive rates aim to reduce the financial strain on homebuyers, making homeownership more accessible.

The Application Process for a CalHFA Mortgage

Navigating the process of applying for a mortgage can seem overwhelming. However, CalHFA offers a simple, straightforward process that helps buyers understand each step clearly.

Find a CalHFA-approved lender: Your first step is to connect with an approved lender. These CalHFA lenders are trained to help you navigate the loan process and ensure you meet all the necessary CalHFA qualifications.
Gather your documents: Prepare the required documents such as your credit report, proof of income, and tax returns. These documents are needed for the application process.
Complete the application: Submit your CalHFA application through your lender and await approval.
Wait for approval: The approval process can take between 30 to 45 days, depending on your situation.

What Makes CalHFA Mortgages Different?

When considering your mortgage options, it’s crucial to understand what sets CalHFA mortgages apart from traditional loan offerings. Here are some key benefits:

📉 Affordable Rates

CalHFA rates are competitive, often lower than conventional mortgage rates, ensuring long-term savings. For instance, as of July 2025, the CalHFA FHA program offers a fixed interest rate of 6.375%, while the CalHFA Conventional program with down payment assistance is at 6.750%. In contrast, the average 30-year fixed mortgage rate in California is approximately 6.75%, making CalHFA mortgage rates a more attractive option for eligible borrowers.

💰 Down Payment Assistance

One of the most significant hurdles for homebuyers is the down payment. CalHFA’s down payment assistance programs, such as the MyHome Assistance Program, provide up to 3.5% of the purchase price to assist with down payments and closing costs. This assistance is in the form of a deferred payment junior loan, meaning payments are deferred until the first mortgage is refinanced or paid off, or the home is sold.

🏠 Flexible Loan Options

CalHFA offers a variety of loan programs to suit different needs:

CalHFA FHA Program: An FHA-insured loan featuring a CalHFA 30-year fixed interest rate first mortgage.
CalHFA Conventional Loan Program: A first mortgage loan insured through private mortgage insurance on the conventional market.
CalPLUS FHA and CalPLUS Conventional Programs: These programs are combined with the CalHFA Zero Interest Program (ZIP) for closing cost assistance.
CalHFA VA and USDA Programs: Specialized loans for veterans and rural homebuyers, respectively.

By choosing a CalHFA loan, you’re not just gaining access to affordable home financing, but you’re also unlocking the door to programs that prioritize your long-term financial stability.

Common Questions About CalHFA Mortgages

What are the income limits for CalHFA in California?

CalHFA sets income limits based on county and household size. For instance, in 2025, the income limit for a single-person household in Alameda County is $253,000, while in Tulare County, it’s $148,000 .

What are the current CalHFA mortgage rates in California?

As of July 2025, CalHFA offers various loan programs with competitive interest rates:

CalHFA FHA: 6.375%
CalPLUS FHA with 2% ZIP: 7.125%
CalPLUS FHA with 3% ZIP: 7.750%
CalHFA VA: 6.375%
CalHFA USDA: 6.375%

These rates are generally lower than conventional mortgage rates, making homeownership more accessible.

How can I qualify for CalHFA down payment assistance in California?

CalHFA provides down payment assistance through programs like MyHome and ZIP:

MyHome Assistance Program: Offers a deferred-payment junior loan up to 3.5% of the purchase price or appraised value for FHA loans, and up to 3% for conventional loans .
ZIP (Zero Interest Program): Provides 2% or 3% of the purchase price for closing costs, depending on the loan type.

Eligibility typically requires a minimum credit score of 640 and completion of a homebuyer education course.

What CalHFA programs are available for first-time homebuyers in California?

CalHFA offers several programs tailored for first-time homebuyers:

CalHFA FHA and Conventional Loan Programs: Provide 30-year fixed-rate mortgages with competitive interest rates.
CalPLUS FHA and Conventional Programs: Include the ZIP for closing cost assistance.
CalHFA VA and USDA Programs: Offer specialized loans for veterans and rural homebuyers, respectively.

These programs are designed to make homeownership more attainable for first-time buyers.

How much can I get from CalHFA for down payment assistance in California?

Through the MyHome Assistance Program, you can receive:

Up to 3.5% of the purchase price or appraised value for FHA loans.
Up to 3% for conventional loans.

Additionally, the ZIP program offers 2% or 3% of the purchase price for closing costs.

These funds are provided as deferred-payment junior loans, meaning payments are deferred until the first mortgage is refinanced or paid off, or the home is sold.

How long does it take to get approved for a CalHFA mortgage in California?

The approval process for a CalHFA mortgage typically takes between 30 to 45 days, depending on your situation. This timeline includes gathering necessary documents, completing the application, and awaiting final approval from a CalHFA-approved lender.

Are there any specific CalHFA programs for veterans in California?

Yes, CalHFA offers the CalHFA VA Loan Program, which is a VA-insured loan featuring a CalHFA fixed interest rate first mortgage. This program is designed to assist veterans in purchasing homes with favorable terms.

Is the CalHFA Dream For All program available in California?

As of June 2025, the California Dream For All Shared Appreciation Loan Program has allocated all its funds and is no longer accepting new applications. However, if you’ve already applied and are on the voucher waitlist, you can check your status through the Voucher Portal .

How do CalHFA interest rates compare to conventional mortgage rates in California?

CalHFA interest rates are generally lower than conventional mortgage rates. For example, as of July 2025, the average 30-year fixed mortgage rate in California is approximately 6.84%, while CalHFA offers rates starting at 6.375% .

Conclusion: Make Your Dream Home a Reality with CalHFA

Buying a home in California doesn’t have to be an impossible dream. Thanks to CalHFA, many first-time buyers and those struggling with high down payments or credit challenges can find an affordable path to homeownership. With CalHFA loan programs, down payment assistance, and competitive rates, you can make your dream of owning a home a reality.

Whether you’re navigating the CalHFA first-time homebuyer program, looking for CalHFA grants, or simply trying to understand CalHFA requirements, this guide has laid out everything you need to get started. It’s time to stop worrying about CalHFA rates today and start taking steps toward homeownership.