Loan Programs
The Federal Housing Administration (FHA) provides FHA-insured mortgages through approved lenders. CalHFA, on the other hand, offers its own loan programs, including the CalPLUS FHA program, which combines an FHA-insured first mortgage with the CalHFA Zero Interest Program (ZIP) for closing costs.
Key Facts
- Loan Programs:
- FHA: The FHA offers various loan programs, including FHA-insured mortgages, which are provided by FHA-approved lenders.
- CalHFA: CalHFA offers its own loan programs, such as the CalPLUS FHA program, which is an FHA-insured first mortgage combined with the CalHFA Zero Interest Program (ZIP) for closing costs.
- Interest Rates:
- FHA: FHA-insured loans typically have competitive interest rates.
- CalHFA: The interest rates for CalHFA programs may vary depending on the borrower’s financial circumstances, lender fees, and other factors. It is recommended to check with a CalHFA-approved loan officer for an accurate rate quote.
- Eligibility Requirements:
- FHA: FHA loans have specific borrower and property requirements. Non-occupant co-borrowers are not allowed, and borrowers may need to complete homebuyer education counseling.
- CalHFA: CalHFA programs also have borrower and property requirements. Borrowers must occupy the property as their primary residence, complete homebuyer education counseling, and meet CalHFA income limits.
Interest Rates
FHA-insured loans generally have competitive interest rates. CalHFA program interest rates vary based on factors such as the borrower’s financial situation, lender fees, and market conditions. It is advisable to consult a CalHFA-approved loan officer for an accurate rate quote.
Eligibility Requirements
FHA loans have specific borrower and property requirements. Non-occupant co-borrowers are not permitted, and borrowers may be required to complete homebuyer education counseling. CalHFA programs also have borrower and property requirements. Borrowers must occupy the property as their primary residence, complete homebuyer education counseling, and meet CalHFA income limits.
Sources
FAQs
What is FHA?
FHA is the Federal Housing Administration, a government agency that insures mortgages for low-to-moderate income borrowers.
What is CalHFA?
CalHFA is the California Housing Finance Agency, a state agency that provides affordable mortgage financing to first-time homebuyers and low-to-moderate income families.
What are the main differences between FHA and CalHFA loans?
FHA loans are insured by the federal government, while CalHFA loans are insured by the state of California. FHA loans have more flexible credit and income requirements than CalHFA loans, but CalHFA loans may offer lower interest rates and down payment assistance programs.
Which type of loan is right for me?
The best type of loan for you will depend on your individual circumstances. If you have a low credit score or a limited down payment, an FHA loan may be a good option. If you have a good credit score and a larger down payment, a CalHFA loan may offer you a lower interest rate.
How do I apply for an FHA loan?
You can apply for an FHA loan through an FHA-approved lender. You will need to provide the lender with documentation of your income, assets, and credit history.
How do I apply for a CalHFA loan?
You can apply for a CalHFA loan through a CalHFA-approved lender. You will need to provide the lender with documentation of your income, assets, and credit history. You may also need to complete a homebuyer education course.
What are the interest rates for FHA and CalHFA loans?
Interest rates for FHA and CalHFA loans vary depending on the lender and the borrower’s creditworthiness. However, CalHFA loans typically offer lower interest rates than FHA loans.
What are the down payment requirements for FHA and CalHFA loans?
The minimum down payment for an FHA loan is 3.5%. The minimum down payment for a CalHFA loan is 3%. However, some CalHFA programs offer down payment assistance, which can reduce the amount of money you need to put down.