INTEREST RATE

Fixed interest rate for the entire loan term.

A minimum contribution of 3% of the sales price is required from the borrower(s) own funds. Please see CalHFA Underwriting Guidelines for complete details.

CHDAP may be used as additional down payment or to pay closing costs as allowed by CalHFA, the lender and the mortgage insurer/guarantor, but it can not be used to meet the 3% down payment from the borrower’s own funds requirement.

BORROWER ELIGIBILITY

Borrowers must meet the following requirements :

• Be a first-time homebuyer
• Occupy the property as their primary residence; non-occupant co-borrowers are not allowed
• Borrower’s income cannot exceed HCD-defined moderate income limits established for the county in which the borrower is purchasing
• Meet credit, income and loan requirements of the CalHFA Conventional Loan Underwriting Guidelines, CalHFA lender and the mortgage insurer/guarantor

PROPERTY ELIGIBILITY

Properties must meet the following requirements :

• Sales price of the home cannot exceed CalHFA’s sales price limits established for the county in which the property is located
• Be a single-family, one-unit residence, including condominium /PUD
• Manufactured housing must meet eligibility requirements
• Meet the requirements of the mortgage insurer/guarantor

TARGET MARKETS

This program is intended for first-time homebuyers anywhere in California.

TRANSACTION TYPE

Purchase transactions only.

PARTICIPATING LENDERS

CalHFA-approved lenders .

MAXIMUM LOAN AMOUNT

3% of the sales price or appraised value, whichever is less.

Under no circumstances can the CLTV exceed 102% when utilizing any combination of CalHFA first mortgage loans and subordinate loan products or approved programs. The maximum 102% CLTV also applies to CHDAP loans used with a non-CalHFA first mortgage. Note: When CalHFA subordinate loans are combined with FHA, VA or USDA first loans, the financed upfront MIP or guarantee fee is included in calculating the CLTV.

HOMEBUYER EDUCATION

Homebuyer education is required for each borrower using this program. CalHFA will accept a homebuyer’s education counseling certificate of completion issued through Fannie Mae or Freddie Mac identified counseling administration agencies, mortgage insurance companies, or HUD-approved homebuyer counselors. CalHFA accepts education completion via online, face-to-face, or phone. 

• Fannie Mae Homebuyer Counseling Counselors/Administrators Search
• Freddie Mac Homebuyer Counseling Counselors/Administrators Search
• HUD-approved Housing Counselors

Repayment of the principal and interest on the junior loan shall be due and payable at the earlier of the following events:

• Transfer of title
• Sale of the residence
• Payoff or refinance of the first loan
• Upon the formal filing and recording of a Notice of Default (unless rescinded)

See CalHFA’s Conventional Loan Underwriting Guidelines. 

For a CHDAP loan that is combined with a FHA first loan, in addition to meeting CalHFA Conventional Loan Underwriting Guideline requirements,  lenders may submit the Fannie Mae DU Total Scorecard Approve/Eligible recommendation.

Effective January 1, 2005, State Legislation has increased the amount of down payment assistance offered under the CHDAP, from 3% to 5% of the purchase price or the appraised value (whichever is less) for borrowers purchasing a newly constructed home in specific eligible areas.

See the list of government entities that have eligible areas (such as, an infill opportunity zone, transit village development district or transit-oriented development plan area) or you may contact your local city/county planning department.

Borrowers apply through one of CalHFA’s approved lenders.

Lenders make reservations through CalHFA’s Lender Access System (LAS).

Questions regarding the California Homebuyer’s Downpayment Assistance Program should be directed to CalHFA-approved lenders or the CalHFA’s Homeownership Division at:

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