Andrade Real Estate Services

The CalHFA FHA Loan Program is designed to help first-time homebuyers in California purchase a primary residence with affordable financing and down payment assistance. The program pairs a CalHFA FHA first mortgage (30-year fixed) with optional subordinate financing such as the MyHome Assistance Program, which provides up to 3.5% of the purchase price or appraised value (whichever is less) to be used for down payment or closing costs. All subordinate financing is deferred-payment, due only upon sale, refinance, transfer, or payoff of the first mortgage. Borrowers must meet CalHFA income limits, credit score requirements, and first-time homebuyer definitions.

This program is ideal for buyers who:

Are first-time homebuyers purchasing a primary residence in California.
Need down payment or closing cost assistance.
Have a minimum credit score of 640 (660 for manufactured homes/manual UW).
Want a fixed-rate FHA loan with flexible underwriting options.

Property Type	Credit Score	Min Down w/MyHome	Min Down	Max LTV	Max CLTV	DTI	Notes
SFR / PUD	640 - 699	0%	3.5%	96.50%	105%*	45%	No FHA Single-Unit condo approval.
SFR / PUD	700+	0%	3.5%	96.50%	105%*	50%	Higher FICO allows 50% DTI.
Condo (HUD-approved)	640 - 699	0%	3.5%	96.50%	105%*	45%	Must be HRAP/DELRAP approved.
Condo (HUD-approved)	700+	0%	3.5%	96.50%	105%*	50%	HUD approval required.
Manufactures Home	660+	0%	3.5%	96.50%	100%	45%	No manual UW. Must meet FHA 4000.1 + CalHFA overlays.
2-4 units	N/A	N/A	N/A	N/A	N/A	N/A	Not eligible under CalHFA FHA.

MyHome Assistance Program	Details
Amount	Up to 3.5% of appraised value or sales price (lesser of the two).
Interest	1% simple interest, accrues but no monthly payments required.
Payment	Deferred for the life of the CalHFA first loan.
Uses	Down payment and/or closing costs.
Not Allowed	Debt payoff.
Repayment Triggered By	• Transfer of title / adding parties • Sale of property • Payoff or refinance of first loan • Recorded Notice of Default
Layering	Must be recorded subordinate to CalHFA subordinates.

Borrower Requirements
First-Time Homebuyer At least one borrower must not have owned a primary residence in the last 3 years. Applies to all borrowers, including non-purchasing spouses.
Residency / Citizenship Borrower must be a U.S. citizen or permanent resident with valid SSN. Lawfully present non-U.S. citizens are no longer eligible under FHA.

Occupancy Requirement
Primary residence Required — owner-occupied only. Investment or second homes are ineligible. All borrowers must occupy the property within 60 days of closing.
Military stationed > 100 miles away May qualify if a family member occupies the home, or the borrower intends to occupy upon discharge.

Residency Eligibility
Eligible Valid SSN — must have a valid Social Security Number (SSN). Permanent residents — must provide a valid, unexpired Green Card.
Ineligible ITIN borrowers are not eligible. Non-permanent residents (no longer eligible under FHA). Foreign nationals are ineligible. Individuals with EAD (Employment Authorization Document) are not eligible. Individuals with work permits are not eligible.

Income Consistency Requirements
Employment History Two years of employment history required with the same employer or with different employers in the same line of work, Education or training may be used to fill gaps in history, If on temporary disability, income used will be the lower of the disability pay or the regular employment income.
Notes Frequent job changes are allowed if they are within the same line of work and the income is stable or increasing, provided this is supported by documentation, Gaps over 6 months require explanation + current 6 months continuous employment, Education and training must be documented with transcripts, diploma, certificate, professional license, or official school/training program documentation, An employer’s letter is required and must confirm the return-to-work date. If the return-to-work date is before the first mortgage payment, use regular income; if the return-to-work date is after the first mortgage payment, use the lower of disability income or regular income.

Income Type	Requirement	Documentation
Wage Earner	2 years stable employment history (gaps allowed if explained). Must show likelihood of continuance.	30 days paystubs + 2 years W-2s; VOE if required.
Self-Employed	2 years of self-employment required (1 year possible with ≥5 years prior work history in same field or relevant professional license.). Must demonstrate stable or increasing income.	2 years tax returns; YTD P&L; business bank statements if requested.
Part Time	2-year history required; must be likely to continue.	W-2s, paystubs, VOE verifying hours and history.
Seasonal	2-year history required; must be likely to continue.	W-2s, paystubs, VOE or employer letter confirming rehire pattern.
Social Security, Disability, and Retirement Income	Must be expected to continue ≥ 3 years.	Award/benefit letter (SSA, pension, disability) + proof of receipt (bank statements, 1099s, or deposits).
Alimony / Child Support	Must be court-ordered or written agreement; ≥ 3 years continuance.	Divorce decree, separation agreement, or order + 6 months proof of receipt.

Homebuyer Education Requirement
Education At least one occupying first-time homebuyer must complete education if using MyHome Assistance.
Note Online option: eHome™ with follow-up counseling session. In-person/virtual: Through NeighborWorks America or a HUD-approved counseling agency.

Down Payment Funds
Eligible Sources Borrower’s own funds, Large deposits, Gift funds, CalHFA MyHome / ZIP / other DPA, Retirement (401k / IRA), Sale of assets.
Requirements 2 months of bank statements required to verify assets, Large deposits must be sourced if not payroll-related, Gift funds allowed with gift letter + proof of transfer (no seasoning required). DPA programs permitted if approved, Retirement funds require withdrawal terms + statements. Asset sales require bill of sale + proof of deposit.

Gift Funds
Eligible Donors Allowed for down payment and/or closing costs from acceptable sources such as: Spouse or domestic partner, Parent, step-parent, or foster parent, Child, step-child, foster child, or adopted child, Brother or sister, step-sibling, foster sibling, or adopted sibling, Grandparent, step-grandparent, foster grandparent, or grandchild, Aunt, uncle, niece, nephew, or cousin, In-laws, future in-laws, fiancé or fiancée, or ex-spouse, Charitable organization, Employer or Labor union, Government agency or public program, Seller only for a gift of equity and only when the seller is a family member.
Ineligible Donors Not allowed as sources of down payment or closing cost funds: Real estate agent, Loan originator or loan officer, Builder or contractor, Developer, Seller (except for family gift of equity).

Temporary Interest Rate Buydowns
Types Allowed 2–1 buydowns are allowed.
Note 660 required.
Restrictions & Qualification Borrower must qualify at the full note rate (not the buydown rate).

Loan Amounts
County Loan Limits Must meet FHA county loan limits.
Minimum Loan Amount $50,000 minimum (case-by-case exceptions possible).

Non-Occupant Co-Borrowers
Eligibility Not allowed under CalHFA FHA. All borrowers must live in the home as their primary residence.
Notes Non-purchasing spouses are considered for income eligibility but cannot be co-borrowers.

Property Types
Eligible SFR HUD-approved condos PUDs Manufactured homes (on permanent foundation) Leaseholds (except manufactured homes) ADUs allowed if appraised as part of a 1-unit property (with restrictions)
Ineligible 2–4 units Second homes Investment properties Singlewide manufactured homes Non-warrantable condos.

Self-Sufficiency (ADU)
Requirement An ADU (Accessory Dwelling Unit) is acceptable if it’s appraised as part of a 1-unit property (meaning the main dwelling is clearly the primary).
Calculation Income from an ADU cannot be used to qualify for CalHFA FHA. The borrower must qualify on their own income.

Home Warranty Requirement
Requirement First-time homebuyers using CalHFA must obtain a 1-year home warranty covering: • Water heater • A/C • Heating • Oven/Stove/Range
Exceptions • New construction • Borrowers not using MyHome

Multiple CalHFA Loans
General Policy Generally limited to one CalHFA first mortgage at a time. A borrower cannot have two active CalHFA first mortgages simultaneously.
Notes Subordinate CalHFA programs (like MyHome) may be layered with the CalHFA FHA first mortgage.

Seller Contributions
Maximum Contribution Up to 6% of the sales price.
Allowed Uses Closing costs Prepaid items Discount points Buydown escrows

Disclaimer – This matrix was published on 09/20/2025. Program guidelines may have changed since then. Please contact Alexis to confirm the most current requirements. For complete details, refer to the Partner Matrices PDF or reach out directly to Alexis for program-specific guidance.

CalHFA FHA

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