FAQ for CalHFA Homeowners

First Loans | Subordinate Financing | Recapture Tax

First Loans


There may be a delay in processing of payoff demand and other loan servicing requests due to higher than normal request. We appreciate your patience. Please email your request to subloans@calhfa.ca.gov or fax to 916.326.6420.

Subordinate Financing (Subordinate Liens)

General Information

Do I have to pay back my Subordinate Liens?
Why is my loan called a "Silent Second"?


Can my subordinate loan(s) be assumed?


My loan is a CalSTRS second, how does it differ from a CalHFA second?

Forgivable Equity Builder

I have had my CalHFA down payment assistance loan for five years. Is it now forgiven since CalHFA offers the Forgivable Equity Builder Loan?
I want my CalHFA loan to be converted to a Forgivable Equity Loan. How do I do that?
Is my CalHFA DPA loan forgiven now that CalHFA offers the Forgivable Equity Builder Loan?
I was told my “silent second” was forgivable. Why isn’t it?
What happens to my Forgivable Equity Loan after five years?
Can I make payments towards my Forgivable Equity Builder Loan?
I need to sell my home and move to another state because of a job/family/other situation outside of my control. Why do I have to pay the full amount of the loan when it is forgivable, and this is outside of my control?
Why did I/will I receive a 1099 C for my Forgivable Equity Loan? I thought it was forgivable.
Can the Forgivable Equity Builder loan be used for down payment and closing costs?
Can I rent out my home if I need to move for work with the Forgivable Equity Builder Loan Program?
Do I need to send in any documentation yearly for this lien?
Will I get any correspondence on this loan?
If I pay off the loan prior to the five-year full forgiveness date, will I be required to pay the entire original loan balance, or a prorated amount?

Information Access

Can I access information about my subordinate loan(s) through the internet?

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?

IRS Forms and Year End Statements

Which IRS Forms does CalHFA issue and when?
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?

Name Change

How can I change a name on my account?


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?

Payoff demands

How do I order a Payoff Demand for Keep Your Home California?
How do I obtain payoff information?
What are the fees if I order a Payoff Demand?
What are the acceptable forms of payment for paying off my loan?
What documents will I be given?
How do I obtain a zero demand letter?

Short Sale Requests

How do I request a Short Sale on a subordinate loan?

Subordination Requests

Can CalHFA subordinate loan(s) be "subordinated"?
Can CalHFA subordinate loan(s) be "subordinated" when I refinance my loan
How do I obtain a Verification of Mortgage (VOM)?
Does my silent second (subordinate loan) reset upon refi?
What do I do regarding a junior lien with Keep Your Home California (KYHC) or CalHFA Mortgage Assistance Corporation (CalHFA MAC)?

Recapture Tax

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".

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