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CalHFA's Homebuyer Education


ONLINE: You can take eHome's eight-hour Homebuyer Education course online

IN-PERSON: face-to-face Homebuyer Education through NeighborWorks America or any HUD-Approved Housing Counseling Agency

Eligibility Questions?

 

Contact Us

Call Toll Free 877.9.CalHFA



CMP Program Description

CalHFA's Loan Modification Program (CMP) is a simple, streamlined program designed to help families with CalHFA loans retain their homes.  Features may include a lengthened loan term, lowered interest rate, or other techniques to help keep payments affordable.


Property Eligibility

  • The mortgage is a first lien conventional.
  • The program may include loans in foreclosure or in the process of some other form of loss mitigation activity.
  • The subject property is the borrower’s principal residence.
  • The borrower has a documented financial hardship.
  • The documentation to support income must not be more than ninety (90) days old as of the date of program eligibility.
  • The property securing the mortgage loan must not be abandoned, vacant, condemned, or in a serious state of disrepair.
  • Borrowers currently in bankruptcy are not eligible for the program.

Borrower Eligibility

  • The borrower has a documented financial hardship.
  • The documentation to support income should not be more than two months old as of the date of program eligibility.
  • The borrower must not currently be in bankruptcy.
  • FHA, VA, Fannie Mae and RHS loans are not eligible for this program.

Financial Hardship Qualifying Events

CalHFA requires a financial hardship to be fully explained and documented. Examples of financial hardships include, but are not limited to:

  • Involuntary loss of employment and borrower is currently unemployed.
  • Temporary unemployment has caused a significant delinquency or new employment has resulted in less monthly income.
  • Employer reduced borrower’s pay (overtime eliminated, regular hours or base pay reduced).
  • One of the borrowers’ or wage earners’ incomes has been eliminated due to death, incarceration, divorce or separation.
  • One of the borrowers’ or wage earners’ incomes has been eliminated or reduced as a result of suffering a permanent or short-term disability or serious illness.
  • Self-employed borrower has suffered a documentable decline in business earnings.
  • Increase in monthly payment (CalHFA interest only PLUSSM (IOP) adjustment)
  • Disaster (natural or man-made) that adversely impacts a borrower’s place of employment or property.

Modification Terms For 30 or 40 Year Fixed Rate Loans

  • Rate may be reduced to a floor of 2% or anywhere in between to achieve an affordable payment.
  • Term may be extended to a maximum of 40 years (480 months) or anywhere in between to achieve an affordable payment.
  • Principal forgiveness and principal forbearance will be evaluated on a case by case basis as needed to achieve an affordable payment.

Back-End Requirements

  • Borrower must submit one (1) full modified monthly payment, in the form of a certified check along with the signed modification agreement.
  • Borrower must contact Keep Your Home California to be evaluated for assistance prior to submitting their loan modification request to CalHFA.

Loan Counseling

  • You may be asked to go through loan/credit counseling at your Loan Servicer's discretion. The counseling agency may advise the borrower that a loan modification is not feasible and in those instances recommend alternative courses of action. Visit the HUD's web site to find a counseling agency in your area.

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