CalHFA pairs a Fannie Mae HFA Preferred first mortgage at 97% LTV with a silent MyHome second that covers the down payment and closing costs. Your California first-time buyers can close with as little as zero out of pocket.
Program at a Glance
CalHFA Conventional combines a Fannie Mae HFA Preferred first mortgage with a CalHFA MyHome Assistance Program deferred second mortgage. The structure allows borrowers to reach 97% LTV on the first and finance the down payment and closing costs through the second, resulting in a combined loan-to-value (CLTV) up to 105%. Income limits apply. At least one borrower must be a first-time homebuyer. Homebuyer education is required.
CalHFA Conventional is a two-loan structure. The first mortgage funds the purchase at 97% LTV. The second mortgage (MyHome) provides the remaining assistance up to 8% of the purchase price or appraised value - covering the 3% down payment and some or all of the closing costs.
Loan Structure - $600,000 Purchase Example 1st Mortgage (HFA Preferred) 97% LTV · $582,000 · Fannie Mae HFA Preferred · Fixed rate · Full qualification 8% MyHome 2nd · Up to $48,000 · Deferred payment · Simple interest · No monthly payment Combined CLTV Up to 105% - Borrower may close with $0 down The MyHome second is a deferred, silent second. No monthly payment is required. Simple interest accrues but is deferred until the first mortgage is paid off, the property is sold, transferred, or refinanced. The borrower includes the second mortgage payment in DTI calculation but does not make a monthly payment on it during the term of the first mortgage.
The MyHome Assistance Program is CalHFA's deferred second mortgage that provides the down payment and closing cost assistance on CalHFA loans. It is subordinate to the first mortgage and has no monthly payment requirement.
Assistance Amount Up to 3.5% of the lesser of purchase price or appraised value (for down payment) Use of Funds Down payment and/or closing costs - applied per CalHFA guidelines Repayment Deferred - due upon sale, transfer, refinance, or payoff of the first mortgage Interest Rate Simple interest accrues - rate set by CalHFA · Check CalHFA rate sheets for current second mortgage rate Monthly Payment No monthly payment required - but payment must be included in DTI calculation Layering Option MyHome may be combined with CalHFA ZIP for additional closing cost assistance (CLTV limits apply) Important: Even though there is no monthly payment, the MyHome second mortgage payment must be included in the DTI calculation. The imputed monthly payment is calculated based on the principal balance and the CalHFA second mortgage rate. Confirm with CalHFA's current rate sheet before calculating DTI.
Key parameters from the BFF CalHFA Conventional Matrix. Download the PDF for complete guidelines before pricing any CalHFA Conventional scenario.
| Parameter | Requirement |
|---|---|
| Geography | California properties only - subject property must be located in California |
| Min FICO | 680 (all borrowers on the loan) |
| Max LTV (1st Mortgage) | 97% - Fannie Mae HFA Preferred first mortgage |
| Max CLTV | 105% - includes MyHome second and any CalHFA ZIP assistance |
| Max DTI | 45% (FICO 680-699) · 50% (FICO 700+) |
| Max Loan Amount | Conforming county limits only - high-balance not available on CalHFA Conventional |
| First-Time Homebuyer | Required - at least one borrower must not have owned a primary residence in the past 3 years |
| Income Limits | Apply - vary by county and household size - verify at calhfa.ca.gov before pricing |
| Homebuyer Education | Required for all CalHFA borrowers - must be completed before loan closes |
| MyHome Second | CalHFA deferred silent second · Up to 3.5% of purchase price or appraised value · No monthly payment · Must include in DTI |
| ZIP Assistance | CalHFA ZIP may be layered with MyHome for additional closing cost assistance (within CLTV limits) |
| Property Types | SFR · PUD · Condos (HFA-eligible) · MH Advantage · Standard Manufactured Home |
| Occupancy | Primary residence only |
| AUS | DU Approve/Eligible - Fannie Mae Desktop Underwriter |
| MI (Mortgage Insurance) | Required - Fannie Mae MI rates for HFA Preferred · Reduced MI rates may apply for low-income borrowers |
| Required | Homebuyer education must be completed from a CalHFA-approved provider before loan closing. Verify completion certificate before submitting the file. |
| Income Limits | CalHFA income limits change regularly and vary significantly by county. Always verify current limits at calhfa.ca.gov before starting the application - an income check during application that passes may fail if limits are updated before closing. |
The primary use case. Borrowers who qualify on income and credit but don't have a 3% down payment saved. MyHome covers the gap.
CalHFA income limits are higher than some other DPA programs. Mid-income buyers in expensive CA markets often still qualify — always check the county limit.
Good income and credit, but rent has made it impossible to save 3%. CalHFA conventional moves the down payment into a deferred second — no savings required.
CalHFA Conventional allows MH Advantage and Standard Manufactured Homes — expanding eligibility beyond site-built properties for CA buyers.
Borrowers at or below certain income thresholds may qualify for reduced mortgage insurance rates on the HFA Preferred first — lowering the monthly payment further.
When MyHome covers the down payment, CalHFA ZIP can be layered on for additional closing cost assistance — potentially allowing the borrower to close with zero out of pocket.
No. CalHFA programs are California only — the subject property must be located in California. The borrower does not need to be a current California resident, but the home being purchased must be in-state. For borrowers buying outside California who need down payment assistance, see the BFF DPA Program which is available in most other states.
Yes. CalHFA defines a first-time homebuyer as someone who has not owned and occupied a primary residence in the past three years. Note that prior ownership of a vacation home or investment property does not disqualify a borrower — only prior ownership of a primary residence counts. There are also exceptions for borrowers purchasing in federally designated targeted areas and for certain eligible veterans.
The MyHome Assistance Program is a deferred, silent second mortgage from CalHFA. It accrues simple interest but requires no monthly payment during the life of the first mortgage. Repayment is triggered when the first mortgage is paid off, the property is sold, transferred, or the first mortgage is refinanced. The amount is typically up to 3.5% of the purchase price or appraised value. Even though there's no monthly payment, the imputed monthly payment must be included in the DTI calculation.
Yes. CalHFA income limits apply to all borrowers on the loan and vary by county and household size. The limits are updated periodically — sometimes more than once per year. Always verify current income limits at calhfa.ca.gov before pricing or starting an application. An income that passes CalHFA limits at application could fail if the limits are adjusted before closing.
Yes. All CalHFA borrowers must complete an approved homebuyer education course from a CalHFA-approved provider. The completion certificate is required before the loan closes — this is not optional. Online courses are available and typically take 6–8 hours. Waiting until the last minute to start homebuyer education is the most common cause of CalHFA closing delays.
CalHFA Conventional Tool Matrix
CalHFA income limits change frequently. Always verify current limits at calhfa.ca.gov before starting an application. Limits that pass at intake can fail if updated before closing.
Completion certificate required before closing. Start your borrower on the course as early as possible — late completion is the most common CalHFA delay.
Price it in the Quick Pricer, download the matrix, or call your AE. We Deliver.
