Hey there! Thinking about buying your first home in California? It can feel like a lot, but there’s a program that might make things easier: the CalHFA FHA Loan Program. Let’s break it down together.

What Is the CalHFA FHA Loan Program?

The California Housing Finance Agency (CalHFA) offers this program to help first-time homebuyers get a 30-year fixed-rate mortgage insured by the Federal Housing Administration (FHA). It’s designed to make homeownership more accessible and affordable.

Who Can Apply?

• First-Time Homebuyers Only: You must not have owned and occupied a home in the past three years.
• Primary Residence Requirement: The home you buy must be your primary residence, not an investment property.
• Income Limits: Your household income must fall within the limits set by CalHFA, which vary by county.
• Homebuyer Education: You’ll need to complete a homebuyer education course through an approved organization.

What Are the Benefits?

• Affordable Fixed Interest Rate: Enjoy predictable monthly payments with a 30-year fixed-rate mortgage.
• Down Payment Assistance: Combine this loan with CalHFA’s MyHome Assistance Program, which offers a deferred-payment junior loan of up to 3.5% of the home’s price to help with down payment and/or closing costs.
• Flexible Property Options: Eligible properties include single-family homes, approved condos, and manufactured homes.

Are There Any Drawbacks?

• Mortgage Insurance: FHA loans require mortgage insurance premiums, which increase monthly payments.
• Income Limits: The program’s income limits may exclude some higher-earning households.
• Primary Residence Requirement: You must occupy the property as your primary residence; non-occupant co-borrowers aren’t allowed.

How Do You Apply?

1. Check Eligibility: Confirm that you meet income and first-time buyer requirements.
2. Complete Education: Take a CalHFA-approved homebuyer education course.
3. Find a Lender: Work with a CalHFA-approved lender to start your application.
4. Gather Documents: Prepare pay stubs, tax returns, and bank statements to speed up the process.
5. Submit Application: Work with your lender to finalize and submit the loan application.

Final Thoughts

The CalHFA FHA Loan Program can make homeownership in California much more achievable for first-time buyers. With affordable rates and options for down payment assistance, this program is worth exploring if you’re ready to take the plunge into homeownership.

For more information, visit the official CalHFA FHA Loan Program page: CalHFA FHA Loan Program.