Buying your first home is a big step, and navigating the world of loans can feel overwhelming. That’s where the California Housing Finance Agency (CalHFA) comes in. Their Conventional Loan Program offers affordable, fixed-rate mortgage options designed specifically for first-time buyers. Paired with CalHFA’s down payment and closing cost assistance programs, this loan can help you get the keys to your first home more easily than you might expect.

What Is the Program?

The CalHFA Conventional Loan Program is a fixed-rate mortgage loan for low- to moderate-income first-time homebuyers in California. The program is specifically designed to pair with CalHFA’s MyHome Assistance Program and ZIP Extra Assistance to help buyers cover down payments and closing costs.

Key Details of the Program

Funding Source

This program is managed by CalHFA and utilizes Fannie Mae’s HFA Preferred™ Loan structure. CalHFA collaborates with approved private lenders to offer these loans.

Eligibility Criteria

• First-Time Homebuyer Status: Applicants must not have owned a home in the past three years.
• Income Limits: Household income must fall within CalHFA’s county-specific income limits.
• Credit Score: Minimum FICO score of 660 (or 680 without assistance programs).
• Debt-to-Income (DTI) Ratio: Maximum DTI of 45%.
• Primary Residence: The property must be owner-occupied.

Benefits of the Program

• Reduced private mortgage insurance costs.
• Low down payment of just 3%.
• Fixed interest rates for predictable payments.

Potential Drawbacks

• Income restrictions may exclude higher earners.
• Limited to first-time buyers.
• Minimum credit score requirements could exclude some buyers.

Application Process

1. Find a CalHFA-approved lender.
2. Get pre-approved for the loan.
3. Complete the required Homebuyer Education Course.
4. Submit your application and documentation.
5. Close on your loan and move into your new home!

Where Is This Program Available?

Location: Statewide, California.

How to Learn More

For more information or to find a participating lender, visit the CalHFA website or contact their customer service team:

• Website: CalHFA Conventional Loan Program
• Customer Service: 877-922-5432
• Lender Directory: Find a CalHFA-Approved Lender</a