40-Year Fixed Mortgage

This conventional first mortgage loan program features a low, fixed interest rate fully amortized loan over a 40-year term. It has a maximum Loan-to-Value (LTV) limit of 95% and may also be used with CalHFA-approved down payment and/or closing cost assistance options for a total Combined-Loan-to-Value (CLTV) of 102%.

INTEREST
RATE

Fixed interest rate for the entire loan term

TERM

40 years

LTV

Maximum LTV: 95%

Manufactured Housing LTV: 90%

CLTV

Maximum CLTV: 102%

Manufactured Housing CLTV:90%

ORIGINATION FEES

1.5% origination fee
(or combination of origination fee and discount points)

PROPERTY ELIGIBILITY

Property must meet all of the following requirements:

  • Sales price of the home cannot exceed CalHFA’s sales price limits established for the county in which the borrower is purchasing
  • Be a single-family, one-unit residence, including approved condominium/PUDs (50% occupancy ratio required on existing condominiums) (See Program Bulletin #2008-04)
  • Manufactured housing must meet eligibility requirements
  • Meet the requirements of CalHFA

MORTGAGE INSURANCE

 

 

Mortgage Insurance is provided by CalHFA Mortgage Insurance Services and is required on the first loan in excess of 80.00% LTV as follows:

LTV:
Premium:
90.01% - 95%
.90%
85.01% - 90%
.67%
80.01% - 85%
.62%

BORROWER ELIGIBILITY

Borrowers must meet the following requirements:

  • Be a U.S. citizen, permanent resident alien or qualified alien
  • Be a first-time homebuyer, unless home is located in a federally designated Targeted Area
  • Occupy the property as their primary residence; non-occupant co-borrowers are not allowed
  • Borrower’s income cannot exceed CalHFA’s income limits established for the county in which the borrower is purchasing
  • Meet credit, income and loan requirements of CalHFA

TRANSACTION TYPE

Purchase transactions only

PARTICIPATING LENDERS

Refer to our Lender List by Product to find 40-Year Fixed Mortgage participating lender.

MAXIMUM LOAN AMOUNT

CalHFA does not establish maximum loan amounts. Financing is available up to 95% of the sales price limits established for the county in which the property is located.

SUBORDINATE FINANCING

This program may be combined with the following subordinate financing options:

* Only eligible for one program per transaction (HiCAP or CHAP)

** Only eligibile for one program per transaction (CHDAP or ECTP)

UNDERWRITING

See CalHFA’s Underwriting Guidelines. 

 

DOCUMENTATION

 

FILE TRANSMITTAL

Only one package is necessary for CalHFA conventional loan files. Refer to the Loan Submission Checklist for documentation needed.

Send all package loan files and documents to:

CalHFA Homeownership Programs
1121 L Street , 7th Floor
Sacramento , CA 95814

HOW TO APPLY

Refer to our Lender List by Product to find 40-Year Fixed Mortgage participating lender.

Lenders make reservations through CalHFA’s Lender Access System (LAS). Follow procedures outlined in Lender Program Manual.

NOTES AND DEEDS

Use CalHFA Conventional Deed of Trust and Promissory Note located on the Conventional Loan Forms web page.

 

IMPORTANT DISCLOSURE INFORMATION:

CalHFA does not lend money directly to consumers. We use approved private lenders to qualify consumers and make all mortgage loans. Rates can vary depending on loan program and income level.

The information provided in this program description is for guidance only. While we have taken care to provide accurate information, we cannot cover every circumstance or program nuance. This program description is subject to change from time to time without prior notice. CalHFA does not discriminate on any prohibited basis in employment or in the admission and access to its programs or activities.

03/08