California Programs

CALIFORNIA HOUSING FINANCE AGENCY (CalHFA)
Phone: 877-9-CALHFA
Website: www.calhfa.ca.gov
E-mail: homeownership@calhfa.ca.gov

CalHFA sells tax-exempt mortgage bonds to secure financing for low-market interest rate loans and down payment-assistance programs. A few down payment-assistance programs administered by CalHFA are state-funded. CalHFA does not lend money directly to consumers. It uses approved private lenders to qualify consumers and make all mortgage loans. The rates consumers pay could vary depending on program criteria. To find out if your clients are eligible to receive CalHFA financing, they must first work with a CalHFA-approved lender. To find contact information for lenders in your area, search CalHFA's Approved Lenders Database: https://wp11.calfha.ca.gov/approvedlenders.


First Mortgage Loan Programs


35-Year Interest-only Plus:
This conventional mortgage loan offers up to 100 percent financing and allows borrowers to pay only the interest for the first five years of a 35-year term. After that, borrowers pay principal and interest at the same low, fixed interest rate for the remaining 30 years. The interest-only Plus loan may also be combined with CalHFA junior loan programs (except CHAP), for down payment and closing cost assistance, to make owning a first home more affordable.

40-Year Fixed Mortgage:
This conventional mortgage loan offers up to 100 percent financing with a 40-year term and a low-market, fixed interest rate.

30-Year Fixed Mortgage:
This conventional mortgage loan offers up to 100 percent financing with a 30-year term and a low-market, fixed interest rate.

30-Year Fixed Government Insured / Guaranteed Mortgage:
This program is for mortgage loans that are insured or guaranteed by FHA, VA, or USDA, and features a 30-year term with a low-market, fixed interest rate.


Down Payment-Assistance Loan Programs


Affordable Housing Partnership Program (AHPP):
A joint effort by CalHFA and more than 300 localities (cities, counties, redevelopment agencies, housing authorities, and nonprofit entities) whereby a deferred-payment subordinate loan from a locality is utilized by the first-time home buyer to assist them with down payment and/or closing costs. The partnership provides low-income borrowers with sufficient gap financing for affordable home loan payments.

CalHFA Housing Assistance Program (CHAP):
Offers a deferred-payment junior loan of an amount up to the lesser of 3 percent of the purchase price or appraised value to be used for a down payment. CHAP is available only when combined with an FHA-insured CalHFA 30-Year Fixed Mortgage.

California Homebuyer's Downpayment Assistance Program (CHDAP):
Offers a deferred-payment junior loan of an amount up to the lesser of 3 percent of the purchase price or appraised value to be used for a down payment or closing costs. This junior loan may be combined with a CalFHA or non-CalHFA first mortgage loan offered by a CalHFA-approved lender. This junior loan cannot be combined with ECTP.

Extra Credit Teacher Home Purchase Program (ECTP):
A low-market interest rate CalHFA first loan, combined with a forgivable interest CalHFA junior loan, assists eligible teachers, administrators, staff members, and classified employees who serve in California's high-priority schools in purchasing their first home. The ECTP provides a deferred-payment junior loan for down payment assistance, from $7,500 to $15,000, depending on the location of the property, or 3 percent of the purchase price, whichever is greater. This junior loan is available only when combined with a CalHFA first mortgage loan. If the first mortgage loan is CalHFA's 30-Year Fixed Mortgage, the interest rate on the first mortgage will be at a special reduced rate. Interest on the junior loan is deferred and may be reduced to zero if the borrower meets continued eligibility requirements. The ECTP cannot be combined with the CHDAP. The ECTP reduced interest rate is not available on the CalHFA interest-only PLUS or the 40-Year Fixed Mortgage loan programs.

High Cost Area Home Purchase Assistance Program (HiCAP):
Through HiCAP, CalHFA helps make homeownership a possibility for first-time home buyers in some of California's higher-cost counties. The HiCAP provides a deferred-payment second loan of $7,500 to be used for down payment assistance and is available only when combined with a CalHFA first mortgage loan program.