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CalHFA ~ CalPLUS with Zero Interest

CalPLUS is a FHA first mortgage loan with a fully amortized fixed interest rate.  CalPLUS has an exclusive downpayment assistance program ZIP. ZIP is a deferred payment, zero interest junior loan that is only available with the CalPLUS first mortgage.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.
Ask about the CalHFA, Triple Layer Cake!
Assists with: Down paymentMaximum Amount of Assistance: up to 3.5% of the CalPlus FHA 1st Mortgage Eligible for: 

  • 30 year FHA 1st mortgage loan combined with the Zero Interest program 2nd loan
  • Primary residence homes
  • Single-family residence and BMCD approved condos
  • Borrowers with 640 minimum credit score
  • W2 and/or tax return filers
  • Borrowers with 45% maximum debt-to-income (DTI) ratio
  • 103% combined loan-to-value (CLTV)

First Time Homebuyer Exceptions: Borrowers who live in targeted areas* and qualified veterans

Program Highlights & Benefits: 

  • Low interest rate 1st mortgage (long term mortgage)
  • Deferred payment, zero interest rate 2nd mortgage (long term mortgage)
  • Can be combined with Mortgage Credit Certificate (MCC), CHDAP, ECTP, or Energy Efficient Mortgage (EEM)

 Additional Requirements: Borrower must complete 8 hour Homebuyer Education course and obtain a certificate of completion through an eligible homebuyer counseling organization (NOTE: only one occupying borrower on each loan transaction needs to take this course)

Income Limits: *as of August 5th, 2013* NOTE: to view limits outside of Orange County, click the source below the chart

Persons 1 2 3 4 5 6 7 8
 Orange County   $70,150  $80,200  $90,250  $100,250  $108,250  $116,300  $124,300  $132,250

*source: http://www.calhfa.ca.gov/homeownership/limits/income/income-moderateFHA.pdf

Sales Price Limits: *as of August 5th, 2013* the sales price of the home cannot exceed county limits.  NOTE: to view limits outside of Orange County, click the source below the chart

 New Construction Non-Targeted  New Construction Targeted Resale Non-Targeted  ResaleTargeted
 Orange County $673,616 $823,308 $673,616 $823,308

*source: http://www.calhfa.ca.gov/homeownership/limits/salesprice/salesprice.pdf

Loan Limits: *as of January 1st, 2014* Must use basic standard mortgage loan limits.   NOTE: to view limits outside of Orange County, click the source below the chart

 One-Family   Two-Family   Three-Family   Four-Family 
 Orange County $625,500 $800,775 $967,950 $1,202,925

*source: https://entp.hud.gov/idapp/html/hicost1.cfm

 Waiting Period after Credit Hardship:

  • 2 year waiting period from discharge of Bankruptcy under Chapter 7
  • 1 year waiting period from discharge of Bankruptcy under Chapter 13
  • 3 year waiting period from Foreclosure, Short Sale or Deed in Lieu of Foreclosure

*Targeted areas are areas defined by the Federal Government where 70% of the families who live there earn an income that is 80% or less than the California statewide median income.  Check with your Loan Officer to determine which properties are located in a targeted area. Or, visit the CalHFA website to learn how to locate targeted areas in California at: http://www.calhfa.ca.gov/homebuyer/information/fdta.htm

 What type of documents do I need?

The CalHFA website suggests, “when initially contacting a loan officer, you may want to have this list of documents and information available to help answer questions that they will ask you”:

  1. Pay stubs
  2. Bank statements
  3. Employment History
  4. Previous Tax Returns

How to Apply for the Program:

Submit Your Information to Speak with a Licensed Loan Officer About Your Down Payment Assistance Eligibility here: