CalHFA ZIP – Zero Interest Program

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Program Overview

CalHFA CalPLUS with ZIP

CalHFA ZIP is a deferred  payment, zero interest second mortgage that is only available with when used with the CalPLUS first mortgage program.

Offered by the California Housing Finance Agency, this new CalHFA loan program is designed to help well-prepared low to moderate income families become homeowners in California.

CalHFA is committed to providing sustainable homeownership solutions to California families.

ZIP Program Highlights

  • ZIP Assistance is 3% or 4% of the total first mortgage loan
  • Loan Term Matches CalPLUS loan term
  • Zero Interest for life of loan
  • Deferred payments for term of loan

CalPLUS Loan Terms

  • 30 Year Term
  • Follows qualifying guidelines of CalPLUS Conventional or FHA loan programs
  • 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
  • Loan Term Matches CalPLUS loan term
  • Zero Interest for life of loan
  • Deferred payments for term of loan

Property Eligibility

  • Single Family Residence and HUD approved condos
  • Sales Price Limits (varies by county)
  • Owner Occupied Only
  • No Manufactured Housing Allowed
  • 1 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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