What is the CalPLUS Conventional Loan Program?
The CalPLUS Conventional Loan Program is a 30-year fixed-rate mortgage offered by the California Housing Finance Agency (CalHFA). It features a slightly higher interest rate than the standard CalHFA Conventional loan and is combined with the CalHFA Zero Interest Program (ZIP) to assist with closing costs.
Who is eligible for the CalPLUS Conventional Loan Program?
Eligible applicants must be first-time homebuyers, defined as individuals who have not owned and occupied a home in the past three years. Borrowers must also meet CalHFA income limits and occupy the purchased property as their primary residence.
What is the CalHFA Zero Interest Program (ZIP)?
The CalHFA Zero Interest Program (ZIP) is a deferred-payment junior loan of 2% or 3% of the first mortgage loan amount. It has a 0% interest rate and is used to cover closing costs, reducing the out-of-pocket expenses for homebuyers.
Are there specific property requirements for this program?
Yes, eligible properties include single-family, one-unit residences, approved condominiums, and manufactured homes on a permanent foundation. The property must serve as the borrower's primary residence.
Is homebuyer education required for the CalPLUS Conventional Loan Program?
Yes, at least one occupying first-time borrower must complete an eight-hour homebuyer education and counseling course through an eligible organization. This ensures borrowers are well-prepared for homeownership responsibilities.
What are the credit score requirements?
Borrowers must have a minimum credit score of 680. However, a higher credit score may be required depending on the loan-to-value ratio and debt-to-income ratio.
What is the maximum debt-to-income (DTI) ratio allowed?
The maximum DTI ratio is 45% for borrowers with a credit score of 680. For borrowers with a credit score of 700 or higher, the DTI ratio may be up to 50%.
Don't miss out!
Check out our program and get started today.
Get Started NowCan the CalPLUS Conventional Loan be combined with other assistance programs?
Yes, the CalPLUS Conventional Loan must be combined with the CalHFA Zero Interest Program (ZIP) and can also be layered with the MyHome Assistance Program for down payment and closing cost assistance.
Are there income limits for applicants?
Yes, applicants must meet CalHFA income limits, which vary by county and household size. These limits are designed to assist low- to moderate-income borrowers.
Is there a maximum loan amount?
Yes, the maximum loan amount is subject to conforming loan limits, which vary based on the property's location. It's important to verify the current limits for your area.
Are non-occupant co-borrowers allowed?
No, all borrowers must occupy the property as their primary residence. Non-occupant co-borrowers are not permitted under this program.
What are the mortgage insurance requirements?
Mortgage insurance is required for loans with a loan-to-value ratio exceeding 80%. The coverage amount depends on the loan-to-value ratio and other factors.
Can I use this loan for a manufactured home?
Yes, manufactured homes are eligible if they meet specific guidelines, including being on a permanent foundation and meeting the first mortgage requirements.
What happens if I refinance or sell my home?
If you refinance or sell your home, the CalHFA Zero Interest Program (ZIP) loan becomes due and payable. The repayment will include the original loan amount.
Don't miss out!
Check out our program and get started today.
Get Started NowAre there any fees associated with the CalPLUS Conventional Loan Program?
Lenders may charge customary fees, including origination and processing fees. It's advisable to discuss all potential fees with your lender to understand the total cost of the loan.
Is there a prepayment penalty?
No, there is no prepayment penalty for the CalPLUS Conventional Loan Program. Borrowers can make additional payments or pay off the loan early without incurring extra charges.
How do I apply for the CalPLUS Conventional Loan Program?
To apply, contact a CalHFA-approved lender who will guide you through the application process, including verifying eligibility, assisting with necessary documentation, and explaining program requirements.
Is there a deadline to apply for the program?
There is no specific deadline to apply for the CalPLUS Conventional Loan Program. However, program availability is subject to funding, so it's advisable to begin the application process as soon as you are ready to purchase a home.
Can I use this loan for a second home or investment property?
No, the CalPLUS Conventional Loan Program is intended for primary residences only. All borrowers must occupy the property as their primary residence.
Are there purchase price limits for homes under this program?
Yes, the home's purchase price must not exceed CalHFA's sales price limits for the county in which the property is located. These limits are subject to change and should be verified with a CalHFA-approved lender.