CalHFA loans are subject to a Federal Recapture Tax. Recapture is a Federal income tax that borrowers may have to pay if they sell or transfer their CalHFA-financed home within 9 years.

For additional information refer to CalHFA's "A Guide To Recapture" now available on this web site.

For details on how to calculate recapture tax use, IRS form 8828 and its instructions, located on the IRS web site.

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.