CalHFA CalPlus FHA Loan Program

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Program Overview

The CalPLUS FHA Loan Program is a FHA insured first mortgage loan featuring a fully amortizing fixed interest rate with a maximum 30-year term which includes a  Zero Interest Program (ZIP).

ZIP is a deferred, zero interest rate second loan of either 3% or 4% of the CalPLUS first mortgage loan amount and can only be used in combination with a CalPLUS Conventional loan.

FHA Loans requires a minimum 3.5% down payment.

Borrower Eligibility

  • Owner Occupied only – borrower must live in the home as a primary residence
  • Minimum 640 Credit Score for automated underwriting approvals
  • Minimum 660 Credit Score for manual underwriting approvals
  • Full income / asset documentation only – W2 and/or tax returns
  • Borrower contribution can be Gift
  • Do NOT have to be a first time home buyer
  • Borrower must complete 8 hour Homebuyer Education course if first time home buyer
  • 45% Debt to Income Ratio (regardless of automated approval findings)
  • 43% Debt to Income Ratio if manual underwriting is required
  • Non-Occupying Co-Signers allowed
  • Income Limits Apply (varies by County)
  • 105% Combined Loan to Value including assistance loans

CalPLUS Loan Terms

  • FHA insured first mortgage
  • 30 year fixed rate term
  • High Balance FHA loan amounts allowed
  • Has exclusive access to ZIP - Zero Interest Program
  • Can be combined with ECTP - Extra Credit Teacher Program
  • Can be combined with MCC and/or EEM
  • Can be combined with MyHome Assistance Program
  • CalPLUS loans are not subject to a recapture tax

ZIP Program Highlights

  • ZIP Assistance is 3% or 4% of the total first mortgage loan amount including UFMIP
  • Loan Term Matches CalPLUS loan term
  • Zero Interest for life of loan
  • Deferred payments for term of loan
  • Exclusively available with CalPLUS first mortgage loan
  • Slightly higher interest rate than CalHFA FHA without ZIP

Property Eligibility

  • Single Family Residence and HUD approved condos
  • Sales Price Limit - $660,000
  • Owner Occupied Only
  • Manufactured housing allowed with minimum 660 Credit Score
  • 2 Year Home Warranty (except new construction)

Minimum Home Warranty Coverage

  • Water Heater
  • Air Conditioning/Heating
  • Refrigerator, Oven/Stove/Range, Microwave, Washer/Dryer

More Assistance Options

If funds are no longer available, or you are unable to meet the qualifications for this assistance program, there are other options that may be available to you.

California home buyers should also explore Mortgage Credit Certificates, CRA Programs, Lender/Agent Credits or other creative down payment and closing cost assistance options.

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