Borrower Requirements
CalHFA does not accept applications directly. A CalHFA approved Lender will qualify you for a home loan, so you will need to apply with one of our Preferred Loan Officers or approved Lenders. Each loan program that CalHFA offers to homebuyers can have different criteria for income limits, minimum credit scores, citizenship etc. To learn about specific requirements and benefits for each program, review the program descriptions on the Loan Programs tab.
Visit our Mortgage & Eligibility Calculators section to assist you in estimating your monthly payments, how much you can afford, and which CalHFA programs you may be eligible for.
In general these are borrower eligibility requirements for all CalHFA programs:
- You will need to meet credit, CalHFA income limits and loan requirements of the CalHFA-approved lender and the mortgage insurer.
- You will need to occupy the property as your primary residence.
- CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
- CalHFA's down payment program MyHome requires you to be a first-time homebuyer. See the definition of a first-time homebuyer.
Be sure to check the borrower eligibility section of each individual loan program for program-specific requirements such as income limits.
Homebuyer Education Requirement
CalHFA firmly believes that homebuyer education and counseling is critical to the success and happiness of a homeowner, and requires homebuyer education and counseling for first-time homebuyers using a CalHFA program.
Who has to take this Homebuyer Education and Counseling course?
Only one occupying first-time borrower on each loan transaction.
How do I take this education and counseling course?
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Are You a First-Time Homebuyer?
To know for sure, you should understand that a first-time homebuyer is defined as someone who has not owned and occupied their home in the last three years, and who has not lived in a home owned by a spouse in the past three years. If any of these circ*mstances happened more than 3 years ago or you have never owned a home, you can apply for the benefits of CalHFA's first-time homebuyer programs. Exceptions may apply, so please talk to one of CalHFA's Preferred Loan Officers for more information.
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Are You a First-Generation Homebuyer?
Only applicable with our California Dream For All Shared Appreciation Loan Program
To qualify for the Shared Appreciation Loan, at least one borrower must meet the definition of a first-generation homebuyer:
- A first-generation homebuyer is defined as a homebuyer who has not been on title, held an ownership interest or have been named on a mortgage to a home (on permanent foundation and owned land) in the United States in the last 7 years, AND;
- To the best of the homebuyer’s knowledge whose parents (biological or adoptive) do not have any present ownership interest in a home in the United States or if deceased whose parents did not have any ownership interest at the time of death in a home in the United States, OR;
- An individual who has at any time been placed in foster care or institutional care (type of out of home residential care for large groups of children by non-related caregivers).
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FAQs
California first-time homebuyer loan programs
The requirements to be eligible include: A minimum credit score of 660 and up to 680, depending on loan type. Meeting CalHFA's income limits based on your specific area. Buying a home for no more than $1,149,825.
Which of the following is a property requirement for CalHFA? ›
The home must be located in California. The home must be your primary residence. The home must be a single family residence.
Is CalHFA only for first-time buyers? ›
This program is available for both first-time and non-first-time homebuyers; how- ever, when CalHFA subordinate financing is included all borrowers must be first-time homebuyers. Dream For All Conventional No, all borrowers must be first-time homebuyers.
What is the minimum credit score requirement on a CalHFA government loan? ›
CalPLUSSM FHA Manual Underwriting is allowed with the following parameters: • Maximum DTI ratio: . . . . . . . . . . . . . . . . . . . . . . . 43.00% • Minimum credit score: . . . . . . . . . . . . . . . . . . . 660 • Borrowers without a credit score are not permitted.
Is California giving up to $150,000 to help first-time homebuyers? ›
The state-funded program, called Dream For All, will be giving out $250 million to assist thousands of first-time homebuyers this year. Buyers can receive up to $150,000 towards their purchase.
How do you qualify for a home loan in California? ›
Requirements to buy a house
- A good credit score. Lenders typically look for a score above 650. ...
- Ample funds for a down payment. Most mortgage loan programs have a down payment requirement. ...
- A mortgage lender. Mortgage loans are available from different types of lenders, including credit unions, banks, and online lenders.
Which of the following is NOT typically included in tenant eligibility criteria? The answer is marital status.
How long does CalHFA approval take? ›
A CalHFA first mortgage generally has a turnaround time at CalHFA of 1-2 business days for compliance review. CalHFA loans have straightforward paperwork, quick processing and dedicated customer service. Many of CalHFA's preferred loan officers have closed CalHFA loans within 30 days.
Does CalHFA have to be paid back? ›
Payments are required unless you default on your mortgage. However, you have the right to make payments on the principal balance at any time before the loan is due by notifying CalHFA in writing.
Is CalHFA the same as FHA? ›
The CalHFA FHA Program is an FHA-insured loan featuring a CalHFA 30 year fixed interest rate first mortgage. Review the sections below to find out more about the CalHFA FHA program.
Contrary to popular belief, you don't need a 20% down payment to buy a home with a conventional loan — the requirement is 3% down for most lenders. However, if you bring less than 20% to the table during closing, you'll need to pay for private mortgage insurance (PMI) on top of your loan, interest, and insurance.
How much down payment for a 500k house? ›
Conforming loan down payments can vary from 3% to 20% or more, so for a $500,000 home, you'd need between $15,000 and $100,000. Conforming loans, once again, follow Fannie Mae and Freddie Mac guidelines and usually offer competitive terms.
What is the maximum loan amount for CalHFA? ›
Maximum Loan Amount for CalHFA VA
Effective for new reservations on or after January 1, 2024, CalHFA will follow the increased loan limits recently announced by Fannie Mae and FHA. A high balance loan limit fee will be required for all first mortgage loan base amounts that exceed $766,550.
What is the debt ratio for CalHFA? ›
The maximum total Debt-to-Income (DTI) ratio cannot exceed 45.00% regardless of automated underwriting decision or compensating factors. MCC may not be used for credit qualifying purposes. CalPLUS FHA and CalHFA FHA loans that are manually underwritten have a 43.00% DTI maximum.
Does CalHFA require a home warranty? ›
Borrower-paid monthly, split-premium, or single-premium mortgage insurance is acceptable • Financed mortgage insurance premiums must be included in the LTV and CLTV . CalHFA requires that all first-time homebuyers obtain a one-year home warranty protec- tion policy .
How much do first time home buyers have to put down in California? ›
Contrary to popular belief, you don't need a 20% down payment to buy a home with a conventional loan — the requirement is 3% down for most lenders. However, if you bring less than 20% to the table during closing, you'll need to pay for private mortgage insurance (PMI) on top of your loan, interest, and insurance.
What is the minimum income to buy a house in California? ›
New homebuyers now need to make at least more than $106,000 now to comfortably afford a 30-year home mortgage with a 10% down payment, Zillow said.
What is the minimum credit score to buy a house in California? ›
Step 2: Explore Bad Credit Mortgage Loan Options
| Loan Program | Minimum Credit Score |
|---|
| Conventional Loans | 620 |
| FHA Loans | 500 - 580 (Depending on down payment) |
| VA Loans | No Limit. However, lenders favor a score of at least 620. |
| USDA Loans | No Limit. However, lenders favor a score of at least 640. |
Apr 10, 2024
Get pre-approved from a lender
Getting pre-approved for a mortgage should be one of your first steps when buying a house in California. A pre-approval helps determine the price range of homes you can afford. This involves submitting financial documents to the lender, such as tax returns and credit reports.
