CalHFA - interest only PLUS

CalHFA’s interest only PLUS^SM is a 35-year conventional loan and is designed to enhance affordability and homeownership opportunities by offering a low, fixed interest rate. Borrowers pay only the interest on the loan for the first five years. After that, borrowers pay principal and interest at the same low interest rate for the remaining 30 years. This program is intended for first-time homebuyers who meet specified low and moderate income limits and who are purchasing a new or existing home anywhere in California.

How The Program Works

This program offers up to 95% financing of the home sales price within CalHFA’s defined sales price limits and a term of 35 years. The interest only PLUS loan may also be combined with CalHFA junior loan programs, for down payment and closing cost assistance, to make owning your first home more affordable.

Program Elements

Requirements	Details and Reference Sources
First-Time Homebuyer	Borrower must be a first-time homebuyer purchasing a primary residence intended for owner-occupancy.
Income Limits	Refer to CalHFA’s income limits established for the county in which the borrower is purchasing.
Sales Price Limits	Refer to CalHFA’s sales price limits established for the county in which the borrower is purchasing.
Citizenship	Be a U.S. citizen, permanent resident alien or other qualified alien.
Property Eligibility	Single family, one unit residence, including condo/PUD. (50% occupancy ratio required on existing condominiums) Manufactured housing is not permitted on the CalHFA interest only PLUS program
Available Through Approved Lenders	Refer to our Lender List by Product to find an interest only PLUS participating lender.
Other Requirements	Meet credit, income, and loan requirements of CalHFA. Other program requirements may apply; please contact an approved lender for more details.

For More Information

To learn more about interest only PLUS, contact us at:

CalHFA Homeownership Division
P.O. Box 4034, Sacramento, CA 95812
Phone: 877.9.CalHFA
Email: homeownership@calhfa.ca.gov

Homebuyers interested in applying for financing should contact one of CalHFA's approved lenders.

CalHFA does not lend money directly to consumers. CalHFA works through and uses approved private lenders to qualify consumers and to make all mortgage loans. CalHFA purchases closed loans that meet CalHFA's requirements. The fees consumers pay could be different depending on the lender and the program. View the sample Truth in Lending disclosure here