FAQ for CalHFA Homeowners

Yes; you signed both a Note and Deed of Trust. CalHFA subordinate financing is secured by a recorded lien on the property. If you pay off the first by selling the property, refinancing the first mortgage, or at maturity of the first mortgage, transfer title to the property, or allow others to assume the first mortgage, the subordinate financing becomes due and payable. These loans are not forgivable, nor do they go away after a period of time.

(Special conditions exist for a reduction of, and possibly the elimination of, the interest on Extra Credit Teacher second loans only.)

Your CalHFA Subordinate Loan is referred to as "Silent" because there are no monthly payments required. While you can make payments on the loan to reduce accrued interest, or principal, no payments are required until the loan is called due, at maturity of the first, sale of the property, transfer of title, a refinance or assumption of the first.

No. If an eligible borrower assumes the first mortgage, the subordinate loan(s) must be paid off prior to the assumption or as part of that process.

The CalSTRS seconds are not true seconds. True second loans have a separate Note and Deed of Trust. The CalSTRS silent second loan is a Note only and shares the Deed of Trust with the first, which is serviced elsewhere. Because both Notes are associated with the same Deed of Trust, both loans must be paid off at the same time, similar to CalHFA.

The CalSTRS second loan must be paid off when the first is refinanced.

The CalSTRS silent seconds are at the same interest rate as the CalSTRS first. On the Zero Down Preferred Program (95/5) the interest is calculated on a simple interest basis for the first 15 years and then compounded annually thereafter. The interest on the 80-17 Program second loan is calculated on a simple interest basis for the life of the loan.

CalSTRS does not allow assumption of their loans.

Yes, you may register and access your loan by clicking here.

CalHFA subordinate loans are calculated on a simple interest basis. This is accomplished by multiplying the current principal balance times the interest rate of the loan, divided by 365, and times the number of days since the last payment was applied (or the CalHFA purchase date if no payments have been made). Example: If your $3,500 second at 5% was disbursed on March 15, 2002, you have made no payments, and a $100.00 payment is received on June 30, 2002; the interest would be $51.30 [$3,500 times 5% divided by 365 times 107]. The payment would be applied first to interest and then to principal, i.e., $51.30 to interest, $48.70 to principal, with the next interest due from date June 30, 2002, and based on a principal balance of $3,451.30.

CalHFA routinely sends out two items to all our borrowers. When CalHFA purchases your loan from the originating lender, we send out a "Welcome" letter at the beginning of the week following the purchase. This letter is required by federal regulations and informs the borrowers that CalHFA purchased the loan and gives them information on how to contact us and where to send payments if they choose to make payments. CalHFA also sends out an "Annual Status Notice", in the month after your anniversary month, informing each borrower of the current unpaid principal balance and accrued interest on their loan(s) and serves as a reminder that this loan is still active. On occasion, other correspondence may be sent as needed.

Depending upon various factors regarding your loan CalHFA could issue a number of IRS Forms as described below. All forms are issued during January of each year for the prior year's activity. Questions regarding the use of any IRS Forms must be directed to a tax professional. CalHFA cannot answer tax related questions.

If after January 31 you have not received your 1098 or 1099-C, you can contact our offices at 1-800-669-1079 or email us at servicing@calhfa.ca.gov, and request a copy.

A number of reasons could cause your interest to be higher than the prior year.

A number of reasons could cause your interest to be lower than the prior year.

To change a name of record due to a legal name change, we will need a copy of the legal documents creating the change. If the borrower's name that is being changed is the first borrower listed, we must have a copy of the new Social Security card issued in the new name.

In addition, CalHFA will require a W9 certifying the updated name/social security number. Upon receipt of these items, we will amend our records. Please mail to the following address:

California Housing Finance Agency
Loan Administration
500 Capitol Mall, Ste. 1400 (MS350)
Sacramento, CA 95814

Yes. Payments can be made by sending a check or money order to the California Housing Finance Agency, Loan Administration, 500 Capitol Mall, Ste. 1400 (MS350), Sacramento, CA 95814. Make sure your name, property address, and loan number are on the payment instrument so that we can apply it to the correct loan(s). Payments of more than $1,000.00 on subordinate loans must be in certified funds (money orders or certified check). Any payment of any amount which pays the loan in full must be in certified funds. Payments not meeting these conditions will be returned.

Since these loans are “Silent” (payments on these loans are deferred so you do not have to make a payment on this assistance until your home is sold, refinanced or paid in full) we do not issue coupons. You can call us at 1.800.669.1079 or email us at servicing@calhfa.ca.gov and request an Activity Statement and we will mail on out for a fee (See our Fee Schedule)

Payments can be mailed to the California Housing Finance Agency, Loan Administration, 500 Capitol Mall, Ste. 1400 (MS350), Sacramento, CA 95814. Make sure your name, property address, and loan number are on the payment instrument so that we can apply it to the correct loan(s).

Before requesting a payoff demand please read carefully the name of the Lendor of Record. California Housing Finance Agency ("CalHFA") and California Housing Finance Agency Mortgage Assistance Corporation ("CalHFA MAC") are two separate entities. CalHFA MAC is the nonprofit organization that administers Keep Your Home California.

If you wish to order a payoff notice for a CalHFA MAC loan click here

If you wish to order a payoff notice for a CalHFA subordinate loan see below FAQ

You can submit a request in writing (using our Payoff Request Form) to CalHFA, Loan Administration, 500 Capitol Mall, Ste. 1400 (MS350), Sacramento, CA 95814 or via fax to 916.326.6420. If request is coming from a third party (escrow company, title company, another lender, etc.) please include our Third Party Authorization Form. Our normal turnaround time is 5 to 10 business days.

CalHFA does not provide payoff figures over the phone.

If the subordinate lien is with Keep Your Home California (KYHC) or CalHFA Mortgage Assistance Corporation (CalHFA MAC), go to www.KeepYourHomeCalifornia.org/payoff.htm or contact Keep Your Home California at 888.954.5338 for instructions on how to request a payoff.

The following fees may apply when requesting a payoff demand:

The following fees are applicable to all payoffs:

A certified check or a cashier's check are the only acceptable forms of payment for loan payoff. Personal checks are not acceptable and will delay the payoff process. When the payoff funds are sent, include your name and loan number, the name and address of the check remitter (if different), and a copy of the Payoff Statement. Title companies and attorneys' offices may send any of the following:

Title companies and attorneys' offices may send any of the following:
Trust account check
Check drawn from attorney's office account
Check drawn from closing agent's business account

Make the check payable to California Housing Finance Agency and send it to:

California Housing Finance Agency
Loan Administration - MS 350
ATTN: Payoff Department
500 Capitol Mall
Sacramento, CA 95814

Payoffs can only be processed at the address above.

Once loan has been paid in full a letter detailing the date of payoff will be sent to you. The reconveyance process however can take up to and beyond 60 days depending on the county your property is located in.

After the loan is paid off, the Deed of Reconveyance will be prepared in accordance with the provisions of your loan. The release document states that the loan has been paid in full and may be discharged from the public records. Once the Deed of Reconveyance has been prepared, it will be forwarded to the county recorder’s office for the county in which the property resides. Once the document is recorded and indexed it will be mailed to you by the recorder’s office. The time frame varies from county to county and you should contact the recorder’s office for a current time frame.

You can submit a request in writing to CalHFA, Loan Administration, - 500 Capitol Mall, Ste. 1400 (MS350), Sacramento, CA 95814 or via fax to 916.326.6420. If request is coming from a third party (escrow company, title company, another lender, etc.) please include our Third Party Authorization Form. With your request please include a copy of the recorded Deed of Trust. Our normal turnaround time is 5 to 10 business days. The fee for requesting a zero demand is $25.00 per occurrence.

You must include a complete short sale package including the following items: