California CalPLUS Conventional Loan Program Guide

Guide to the California CalPLUS Conventional Loan Program

The California CalPLUS Conventional Loan Program offers homebuyers an affordable option for purchasing a home, especially those who meet specific eligibility requirements. In 2025, this program continues to provide low-interest, fixed-rate loans, along with the possibility of down payment assistance. It’s designed to make homeownership more attainable by reducing the financial barriers for first-time and repeat buyers. Below is a detailed guide explaining how the program works and how to apply.

1. Program Overview:

• Purpose: The CalPLUS Conventional Loan Program aims to assist homebuyers in California by offering affordable fixed-rate financing for the purchase of a home. It’s an ideal choice for first-time homebuyers or those who haven't owned a home in the past three years.
• Loan Terms: The program offers 30-year fixed-rate mortgages, which provide buyers with predictable payments throughout the life of the loan. The interest rates are competitive, helping to keep monthly payments affordable.
• Down Payment Assistance: In addition to the low-interest rates, the program offers the possibility of down payment assistance through the CalHFA MyHome Assistance Program. This can cover up to 3.5% of the purchase price, helping to ease the upfront costs of homeownership.

2. Eligibility Requirements for 2025:

To qualify for the California CalPLUS Conventional Loan Program, applicants must meet the following criteria:

• First-Time Homebuyer: The program is primarily aimed at first-time homebuyers, but exceptions may apply in certain situations, such as buying in specific areas or meeting income restrictions. A first-time homebuyer is typically defined as someone who has not owned a home in the last three years.
• Income Limits: Your household income must fall within the program's limits, which are based on the area median income (AMI) for your county or city. These limits vary and are updated annually to reflect local economic conditions.
• Credit Score: A minimum credit score of 660 is required for applicants. Lenders may have different requirements, so it's important to confirm the specific criteria with your lender.
• Property Requirements: The home must be located in California and must serve as your primary residence. The property must also meet the program’s price limits and other qualifying conditions.
• Homebuyer Education: Applicants must complete an approved homebuyer education course. This course will provide you with essential knowledge about homeownership, including budgeting, understanding mortgage terms, and managing home-related expenses.

3. How to Apply:

The application process for the CalPLUS Conventional Loan Program is simple and involves the following steps:

• Assigned Loan Officer: After you begin the application, a dedicated loan officer will be assigned to guide you through the process. This person will help you verify eligibility, gather required documents, and ensure your application is complete.
• Required Documentation: Be prepared to submit documents such as proof of income, tax returns, credit reports, and the certificate of completion from your homebuyer education course.
• Submit Your Application: Once all the required documentation is gathered, you will submit your completed application to your loan officer. They will help process your application and guide you through the next steps.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete an approved homebuyer education course, which is designed to ensure that you understand the responsibilities of homeownership and are financially prepared.
• Course Availability: The course is available both online and in-person, and upon successful completion, you will receive a certificate, which must be submitted as part of your loan application.

5. Down Payment Assistance:

• Assistance Amount: The CalPLUS Conventional Loan Program offers down payment assistance through the CalHFA MyHome Assistance Program. This assistance can cover up to 3.5% of the home's purchase price, helping you with the upfront costs of buying a home.
• Loan Terms for Assistance: The down payment assistance is typically provided as a deferred loan with no interest and no payments due until the home is sold, refinanced, or the mortgage is paid off.

6. Finalizing the Loan:

• Approval Process: After your application is approved, your loan officer will walk you through the final steps, including reviewing and signing the mortgage documents and preparing for closing.
• Closing Costs: While the CalPLUS program helps with down payment assistance, you may still be responsible for certain closing costs. Your loan officer will provide a breakdown of all expenses and explain which costs are covered by the program.

Our knowledgeable loan officers are committed to making the home buying process as easy as possible. They will guide you through each step, from application to closing, ensuring you understand the terms and benefits of the CalPLUS Conventional Loan Program. With their support, you can confidently move forward in achieving your goal of homeownership in California.