Total Mortgage in California

CalHFA and CalPLUS conventional and FHA loans

For first-time home buyers in California, CalHFA offers excellent options for conventional or government-backed fixed-rate loans. There are closing costs and down payment assistance. Eligibility for CalHFA are -

• Credit score should be at least between 660 and 680 based on the loan type.
• The purchase price of the home should be less than $1,149,825.
• Buyers need to meet the required income limits depending on the area in California.
• It is a must that the home buyer completes the CalHFA-approved eHome homebuyer counseling course.

There are two types of CalHFA offers, each with 30-year fixed-rate FHA and conventional loans: CalPLUS Conventional or FHA or CalHFA Conventional or FHA. The CalPLUS option has a higher rate of interest. You must read the requirements of conventional or FHA loans and understand lender requirements other than those mentioned in CalHFA guidelines.

CalHFA VA loan

This is a 30-year VA loan specially meant for the military. It has a fixed mortgage rate in California. You need to produce a certificate of eligibility to prove that you meet the requirements of a VA loan.

CalHFA USDA loan

This is another loan option from CalHFA for homebuyers interested in buying homes in rural areas. It is a 30-year fixed-rate USDA loan. There are income limits and geographic limits. Buyers also need to meet other USDA loan guidelines.

CalHFA Forgivable Equity Builder Loan

This loan is for first-time home buyers in California, offering up to 10% of the property's purchase price. The Forgivable Equity Builder Loan can be forgiven if the homebuyer stays in the home for five years continuously as their primary residence. It can be combined with CalHFA's first mortgage.

MyHome Assistance and Zero Interest Program (ZIP)

CalHFA offers both MyHome Assistance and the ZIP program help with your closing costs and down payment assistance in California. These second mortgages offer up to 3% of a conventional loan or 3.5% of an FHA loan, whichever is lower. It can be combined with the CalHFA's loan initiatives.

California Dream For All Shared Appreciation Loan

This program is for you if you are a first-generation first-time home buyer in California. It is a newer assistance program in which the buyer gets up to 20% of the purchase price of the home as down payment assistance.

It is a shared appreciation loan. In the event you move out of the home or refinance the mortgage, you need to pay back the 20% that was offered as a down payment as well as an additional 20% of the appreciated value of the home, in case you are earning more than 80% of the AMI. If your earnings are 80% of the AMI or less than that, you need to pay an additional 15% of the home's appreciated value.

In the case of shared appreciation, the repayment limit will differ.

FHA Loans

Get an FHA loan in California even if you have a low credit score—as low as 580. Also, the down payment assistance required in this case is as low as 3.5%.

VA Loans

This is a loan assistance program for people in the military or veterans with zero down payment.

USDA Loans

This is available for home buyers who wish to buy a home in a rural area. It does not require a down payment. The credit score required in this case is 640 or more.

Good Neighbor Next Door program

This program requires a minimum low down payment, but there is a limitation in terms of area. You can save half of the purchase price.