Loan Servicing's
Office Address:

Loan Servicing - MS 980
P.O. Box 4034
Sacramento, CA 95812-4034

FAQ for CalHFA Homeowners



Arm Loans

What is an ARM loan?
What type of ARM loans does CalHFA have?
What is a Margin?
What is an Index?
What is an Interest Rate Cap?
How often does my ARM Interest Rate change?
When does my Interest Change?
How is the new Interest Rate determined?
Where can I find the Index for my ARM loan?

Credit Reporting

Why does CalHFA report to credit bureaus?
To which credit bureaus does CalHFA report?
What loans does CalHFA report to the credit bureaus?
When does CalHFA report to the credit bureaus?
What does CalHFA report to the credit bureaus?
Can I dispute the information reported to the credit bureaus and, if so, how?


What is an escrow (impound) account?
What information is on my escrow analysis?
How will you manage my escrow/impound account ?
How is my monthly escrow deposit calculated?
How often does CalHFA review my escrow account?
What increases or decreases my escrow payment?
What happens to a surplus of escrow funds?
What happens if there is a shortage of escrow funds?
How can I dispute an increase in my escrow payment?
Can I delete my escrow account?
Are you or have you considered Property Assessed Clean Energy financing?

Hazard Insurance

What is Hazard Insurance (also called Homeowners Insurance)?
What are CalHFA's Hazard Insurance Requirements?
What does Hazard Insurance cover?
Where do I send my Hazard Insurance information?
Who arranges Property Insurance?
What happens if my Hazard Insurance expires before I can renew the policy?
Why was my Hazard Insurance paid late?
Can I change insurance companies? Does CalHFA need to know?
How do I file an insurance claim?

IRS Forms and Year End Statements

Which IRS Forms does CalHFA issue and when?
When should I receive my IRS Forms?
Who do I contact if I have not received my IRS Form?
Why is the interest on my 1098 higher in the most recent year than the prior year?
Why is the interest on my 1098 significantly lower in the most recent year than the prior year?
What is "deferred interest"?
Why was not all of the interest showing in the payments in my loan history was reported?

Loan Modification / Loss Mitigation

What is Loss Mitigation?
What is a Loan Modification?
Who may qualify for a Loan Modification?
What documents must be submitted for the Loss Mitigation process?
What additional documents must be submitted for a Short Sale?
Where do I send Loan Modification and Short Sale documents?
How long does a Loan Modification/Loss Mitigation take to process?

Mortgage Insurance

Is Mortgage Insurance tax deductible?
What is FHA Insurance on my loan, and can I cancel the premium?
What is Private Mortgage Insurance (PMI)?
What is the Homeowners Protection Act (HPA) of 1998?
What does loan-to-value (LTV) mean?
What does it mean to have a "good payment history"?
How does LTV based on original value differ from LTV based on a new appraisal?
How do I request cancellation of Private Mortgage Insurance (PMI)?
Will CalHFA automatically terminate my PMI at a certain point?
What is HomeOpeners, A Mortgage Protection Program?

Name Changes

How can I change a name on my account?
How can I remove a borrower from or add a borrower to my loan?


What important facts do I need to remember about my home loan payment?
Where do I mail my monthly payment and coupon?
How can I pay by phone the same day?
Can CalHFA automatically withdraw my monthly payment from my checking account?


How do I order a payoff statement for Keep Your Home California?
What is the turn-around time once I've requested a Payoff Statement?
What are the fees if I order a Payoff Statement?
How are interest charges calculated?
How are FHA premiums determined?
What happens if I have a negative escrow balance at the time of payoff?
What happens if I have accumulated late charges on my account?
Will I be assessed a prepayment penalty?
Do I (or my closing agent) need to verify the payoff figures on the day of closing?
What happens when a monthly payment is returned after the loan is paid off?
What are the acceptable forms of payment for paying off my loan?
What happens to funds in my escrow account?
What happens with my tax and insurance bills?
What happens with my FHA Insurance?
What documents will I be given?

Principal Payments

May I make additional principal payments on my CalHFA loan(s)?

Property Taxes

How are my taxes paid?
Which tax bills are paid from my escrow account?
Who do I contact to dispute an increase in property tax?
Who pays the property tax bill?
Do I need to send CalHFA a copy of my tax bill?
Am I entitled to a homeowner's exemption?
What should I do with my property assessment notice?
Why does the total of my property tax payments reported by CalHFA not match my property tax bill?

SUBORDINATE FINANCING (Second and Third Loans)

General Information

Do I have to pay back my second and/or third loan(s)?
Why is my loan called a "Silent Second"?

IRS Forms and Year End Statements

When should I receive my IRS Forms?
Who do I contact if I have not received my IRS Form?
Why is the interest on my 1098 higher in the most recent year than the prior year?
Why is the interest on my 1098 significantly lower in the most recent year than the prior year?

Payoff demands

How do I obtain payoff information?


Can I make payments on my "Silent" loan(s)?
Can I get payment coupons or a monthly statement for my subordinate loan(s)?
Where do I make payments if I want to?


Can CalHFA subordinate loan(s) be "subordinated"?
What are the requirements for a "subordination"?
What do I do regarding a junior lien with Keep Your Home California (KYHC) or CalHFA Mortgage Assistance Corporation (CalHFA MAC)?
Who do I contact if I have questions?

Information Access

Can I access information about my subordinate loan(s) through the internet?
Can I access account information about my subordinate loan(s) through the voice response unit?


Can my subordinate loan(s) be assumed?

Interest calculations and Statements

How is the interest calculated on my subordinate loan(s)?
Why do I get periodic notices if this is a "silent" loan?
My loan is a CalSTRS second, how does it differ from a CalHFA second?
Can my CalSTRS second be assumed?


All comments are subject to tax law interpretation and should be confirmed by a tax consultant.

General Information

What is a Recapture Tax?
Can CalHFA tell me exactly what my Recapture Tax will be?
When do I pay the Recapture Tax?
Does a refinance activate the Recapture Tax?
Is it true I lose half of the gain on the sale of my house to Recapture?
What do I need to calculate my Recapture Tax?
How do I calculate my Recapture Tax?
What happens if my loan is assumed?

Other Recapture questions?

Call us toll free at 877-922-5432, or send questions to "Contact Us".