2018 Buyer Assistance Update Making California More Affordable?
NEW 2018 Income limit allows more California first time home buyers to qualify for down payment assistance.
- Income limit no longer based on family size
- New income limit ranges from $118,550 to $228,300
- Buy a house up to $660,000 sales price
CalHFA Buyer Assistance Loans
CalHFA offers Conventional and FHA first mortgages. When you qualify for a CalHFA first mortgage, you are automatically eligible the down payment and closing cost assistance that accompanies it.
The exceptions are the Extra Credit Teacher Program (ECTP) and the Mortgage Credit Certificate (MCC), which have additional qualifying criteria.
CalHFA Conventional First Mortgage
- CalHFA Conventional Loan Program – 30 year fixed rate first mortgage loan insured with discounted private mortgage insurance using Fannie Mae underwriting guidelines.
- CalPLUS Conventional Loan Program – CalHFA Conventional first mortgage with a slighter higher interest rate than the standard conventional loan. This option is combined with the CalHFA Zero Interest Program (ZIP), which can be used to pay closing costs only.
CalHFA FHA First Mortgage
- CalHFA FHA Loan Program – 30 year fixed rate FHA insured first mortgage loan.
- CalPLUS FHA Loan Program – CalHFA FHA first mortgage with a slighter higher interest rate than the standard conventional loan. This option is combined with the CalHFA Zero Interest Program (ZIP), which can be used to pay closing costs only.
- Cal-EEM + Grant – Energy Efficient Mortgage program. 4% Grant can be used for energy efficient upgrades and may exceed FHA loan limits.
CalHFA Down Payment Assistance Programs
- MyHome Assistance Program – Deferred payment, silent second loan up to the lesser of three and a half percent (3.5%) of the purchase price or appraised value. MyHome Assistance can be used for down payment or closing cost assistance, and can be used with any CalHFA first mortgage program, including CalPLUS with ZIP. Must be first time home buyer.
- (ECTP) Extra Credit Teacher Home Purchase Program – Available to teachers, administrators, school district employees and staff members working for any California K-12 public school, which includes Charter schools and county/continuation schools. Offers between $7,500 to $15,000 in down payment assistance for first time home buyers.
No Income Limit for Family Size
The California first time homebuyer assistance agency (CalHFA) will no longer base qualifying income limit on family size.
This is great news for home buyers that do not have a large family, and want to buy their first home in California.
Under previous loan limits, California home buyers were penalized for having less than 8 family members living in the home.
Income limits were based on family size ranging from 1 person to 8 persons, with the previous down payment assistance rules.
Families with fewer than 5 to 8 members were being unfairly excluded from buyer assistance due to California home prices sky rocketing since 2013.
California home buyers can use CalHFA down payment and closing cost assistance programs to purchase a home up $660,000.
The new income limits do not apply to the MCC mortgage credit certificate tax credit program because this program is tied to federal income tax rules.
2018 CalHFA Loan Limit by County
|Contra Costa||$192,800||San Bernardino||$128,700|
|Del Norte||$118,550||San Diego||$157,050|
|El Dorado||$150,650||San Francisco||$228,300|
|Glenn||$118,550||San Luis Obispo||$164,700|
Apply for Down Payment Assistance
Ask any questions you have about these programs in the comments section below. I will be instantly notified and typically answer questions very quickly.
If you’re ready to see if you’re eligible for down payment and closing cost assistance after these changes, Apply Below…