CalHFA Conventional First Mortgage Loan Program (HFA Preferred)

This Fannie Mae first mortgage does not come with down payment and/or closing cost assistance. May be layered with MyHome, but not ZIP. Interest rate may be lower than the CalHFA CalPLUS programs.

Statewide

Fully amortized 30-year fixed payments.

All loan files must be consistent with subordinate program guidelines in order for the loan to be applicable for purchase. CalHFA subordinate loan programs may only be used for down payment and/or closing costs. The Zero Interest Program (ZIP) is for closing costs only.

1st mortgage financing to help homebuyers purchase a home.
Lender represents, warrants, and guarantees that no funds from any CalHFA down payment or closing cost assistance loan or grant has been used to pay off debt or as cash back to the borrower. Lender further represents, warrants, and guarantees that Lender at all times has and will continue to comply with all Guidelines and Policies, including any amendments to said Guidelines and Policies.

Interest Rates posted daily on CalHFA website.

CalHFA will be offering expanded Temporary Buydown options for reservations made on or after July 31, 2023. In addition to the existing 2-1 Temporary Buydown, CalHFA will also offer a 1-1 and 1-0 Temporary Buydown, per Fannie Mae, FHA, USDA, VA and master servicer guidelines.

For all the details please read Program Bulletin #2023-10 - CalHFA to Expand Temporary Buydown Options

Mortgage insurance is required for all loans that are 80.01% LTV or higher. Borrowers whose income is less than 80% AMI will receive the HFA Preferred Charter MI discounted coverage and MI rates (see below):

• 95.01-97% LTV 18% (income less than 80% AMI)
• 90.01-95% LTV 16% (income less than 80% AMI)
• 85.01-90% LTV 12% (income less than 80% AMI)
• 80.01-85% LTV 6% (income less than 80% AMI)

Borrowers whose income exceeds 80% AMI will require Fannie Mae’s standard mortgage insurance (MI) coverages and rates.

Any Fannie Mae approved mortgage insurance company is allowed.

Mortgage insurance must be ordered using Housing Finance Agency (HFA) MI rates Mortgage Insurance Options.

Delegated MI is allowed up to 97%.

Either borrower paid monthly, split premium or single premium mortgage insurance is acceptable. There is no lender paid premium option.

Financed mortgage insurance premium must be included in the LTV and CLTV.

1. Submit a “Services” request through LQB or Bolt
2. Provide copy of the Certificate and the corresponding Note
3. Disclose the $500 re-issuance fee to eHousingPlus on the LE. Fee will be collected in escrow at closing.
4. Contact the MWF MCC Specialist with any questions.

CalHFA Conventional program is available for both first-time and non-first-time homebuyers, unless paired with subordinate financing and in that case, the borrower must be a first-time homebuyer.

Definition of Ownership Interest
An ownership interest, directly or indirectly in a residential dwelling, includes but is not limited to the following interests:

• Fee simple
  Community property
• Life estate
• Owner, borrower or co-borrower
• Settlor or a vested beneficiary of  a trust with the home as an asset
• Interest in business entity with the home as an asset
• Inherited properties

For LI Borrowers, use the DU® first submission date.
*********The attached updated income limits are effective for new reservations received on or after July 7, 2023. Reservations prior to July 7, 2023 will continue to use the current income limits posted on the CalHFA website. CalHFA Single Family Bulletin #2023-07

CalHFA uses the lender's credit qualifying income, calculated per GSE and Conventional guidelines. Income not used by MWF for credit qualifying will not be used by CalHFA.

Lakeview requires:

• Note: As of 6-17-22: Lakeview is temporarily suspending the tax transcripts requirements due to IRS delays. 
• IRS Transcripts are required only if there is income from a source other than W-2 and/or 1099 fixed income, but not required for commissioned income borrowers.
• (1040, 1099, W-2) for each borrower.
• If using tax returns for loan qualification, transcripts are required for each year used.
• The number of years of transcripts needed is based on DU.
• If amended returns filed, tax transcripts are required.
• Examples of cases where tax returns are required:
• Self-employment income
• Rental income
• Employed by family members
• Other income (i.e., dividends, capital gains, alimony, etc.)
• Paystubs are required for future income.
• 4506-C is required at closing for all transactions.

• The minimum credit score is 680 for borrowers with income greater than the HomeReady 80% AMI LI income limit
• The minimum credit score is 660 for borrowers with income less than or equal to it HomeReady 80% AMI LI income limit

Determining the score to use for program qualification:

• The middle score of the lowest scoring borrower must be used.
• If only two scores, use the lowest score.
• If only one score, that score must be used. Non-traditional credit is not accepted. Borrowers with no score are not allowed.

• 50.00%: Credit Score ≥ 700 with AUS approval. No manual underwrites.
• 45.00%: Credit Score <700 and Manufactured homes.

CalHFA does not require a minimum borrower investment from the borrower. Follow GSE and MI guidelines.

Follow GSE and MI guidelines.

MWF overlay of 2-month reserves on manufactured homes does not apply to CalHFA loans.

CalHFA does not allow title only owners.

Non-borrowing spouses are not allowed to go on Title.

Non-United States Citizens must be lawfully present in the United States (or otherwise meet the requirements of CalHFA & Lakeview). To verify if your borrower’s documentation meets the requirements, send the following information to [email protected]:

• Admission category (Employment based, non-immigrant, asylum, etc.)
• Description (DACA, family member of permanent residents or US Citizens, Refugee, etc.)
• Visa type (SR 2,3, SN-4, etc.)
• Valid EAD card code (C09, A16, A03, etc.)
• I-94 Class of Admission code (if applicable)

• Non-occupant co-borrowers are not allowed.
• Non-occupant co-signers are not allowed.

1-Unit SFR, Condo and Manufactured Homes Guest Houses. Granny/In-Law Units are eligible with the following conditions:

• Must be zoned for Single Family occupancy.
• Cannot be zoned 2-4 units
• Must meet investor guidelines and city/county zoning ordinances.
• May not be income-producing and must be for personal use only.

2-4 Units, Co-ops, Second Homes and Investment Properties.

MWF does not allow Leasehold Estate Properties and Community Land Trust Properties.

Singlewide manufactured homes are not eligible for financing.

Home must be primary residence.

97/105 (the maximum conforming LTV is 95 for high balance loans).

All loans exceeding the Fannie Mae conforming loan limit will be subject to an additional high balance fee. See CalHFA rate sheet for high balance fees.

• CalHFA requires that all first-time homebuyer(s) obtain a one-year home warranty protection policy, excluding new construction. 

Conventional Manufactured Housing (MH):

• Conventional MH loans must follow guidelines outlined in Fannie Mae Manufactured Housing Product Matrix
• Singlewide manufactured homes are not eligible.

Not Allowed

1st Mortgage Clause:

Mountain West Financial, Inc.
1255 W. Colton Ave. #132
Redlands, CA 92374

Max hazard insurance deductible is 5% of the policy face value.

Hazard: The maximum allowable deductible for all property types is 5% of the face amount of the insurance policy.

Flood: Maximum deductible available from the NFIP (currently $10,000).

• Impounds are always required on Conventional HPML loans.
• Impounds are required on all Conventional loans with 90% LTV or higher in State of California.
• Impound rollover not allowed.

CalHFA requires an appraisal on all first mortgage loans. Representation and Warranty (Day 1 Certainty) relief will be allowed, if the loan receives:

(i) Collateral Underwriter® risk score of 2.5 or less;

(ii) meets all other eligibility requirements, and

(iii) MWF remains responsible for description of subject and property eligibility.

For Standard and MH Advantage manufactured homes, a minimum of 2 similar MH comparable sales are required; third comparable may be site-built or modular home.

For all other property types, the process will remain the same as a standard mortgage loan file. MH Advantage appraisals must include photos of the MH Advantage Sticker, HUD Data Plate, HUD Certification Labels, and the site showing all driveways, sidewalks, and detached structures located on the site. AMC is to verify through appraisal photos, the presence of a driveway leading to the home (or to the garage or carport, if one is present). The driveway must consist of blacktop, pavers, bricks, concrete, cement, or gravel, and the presence of a sidewalk connecting either the driveway, or a detached garage or carport, to a door or attached porch of the home. The sidewalk must consist of blacktop, pavers, flagstone, bricks, concrete, or cement.

Required for MWF Corporate.

MWF has an executed agreement with CalHFA.

Not Required, but highly recommended.

CalHFA live training classes are $15 per registrant See CalHFA’s training calendar.

• CalHFA limits the TOTAL combined customary lender origination fees to the greater of 3% of the total loan amount or $3,000. This includes processing and underwriting fees.
• Borrower-paid origination fee will be determined by branch manager (not to exceed 3%) and will include the underwriting and processing fees. The origination fee may not be greater than the standard branch compensation plus processing fee.
• If the total fees exceed 3.00%, the branch must reduce the origination fee accordingly.
• If the borrower is charged in excess of 3.00% in total, the branch is responsible to reimburse the borrower.

MWF underwriting fee: $1095.

A processing fee may be included as long as the total lender fees do not exceed the greater of 3% or $3,000 of the loan amount, including the standard $1095 MWF underwriting fee.

Please note that the origination fee may not be greater than the standard branch compensation plus your processing fee.

For example, if your standard branch comp is 2.00%, you must limit the origination charge to 2.00% plus your standard processing as the origination fee should not be increased even if the total fees are under the greater of 3.00% or $3,000.

N/A

$250 (Section B of LE) Note for Disclosures and CD tech: Label as Master Servicer.

N/A

N/A

MWF will accept locks from 8:30 AM to 2:00 PM PT.

To view rates, please visit: CalHFA Rates

All locks will be issued for 30 days.

Extension, 1^st Mortgage Extension Fee / Subordinate Extension Fee as of May 20,2022: 

• 15 days, 0.25%, 0%
• 30 days, 0.50%, 0%
• 45 days, 0.75%, 0%

Loans under the CalHFA program are not eligible for MWF’s re-lock and extension policies. Extensions are available in 15 day increments only. The extension fee must be charged to the borrower or seller and must be requested prior to the issuance of the CD.

If a lock expires or is cancelled, it can only be re-locked after a 60 day waiting period and will be subject to all guidelines in effect at that time.

Loans may be locked after MWF Underwriter initial approval.

See MWF Rate Lock Policies and Procedures.

See Processing Tools & Forms for Lenders & Realtors | CalHFA

CF30CAL - CONF FIXED 30YR CALHFA

Full Disclosure Package to include all Federal, State, and CalHFA forms:

• Initial 1003 executed by borrower and MLO.
• All CalHFA Submission Forms are included in the disclosure package.

Required Forms:

• CalHFA Borrower Affidavit
• CalHFA does not look at tax returns and requires a VOR only if a mortgage appears on the credit report or if borrowers mark, they are not a FTHB on the 1003.

• CalHFA will start collecting additional borrower data via our new CalHFA State Reporting Disclosure form. This form will be required on all new reservations starting on January 2, 2023. The additional data is mandated by state law and will help us better serve our military and veteran community as well as first-generation homebuyers.

   

  For the official release please visit Program Bulletin #2022-11 - New CalHFA State Reporting Disclosure

• CalHFA will require lenders to use the newest version of the CalHFA State Reporting Disclosure. The revised form updates the consent language to include mailing address. CalHFA encourages lenders to use the updated form starting immediately and the new form will be required for all reservations starting August 1, 2023. Loans with reservation dates on or after August 1, 2023 submitted to CalHFA with the old form will be subject to suspension.

N/A

Follow the standard procedures for generating disclosures.

Exempt from QM and ATR, thus the QM Points and Fees test does not apply.

CalHFA loans are not exempt from the HOEPA and/or HPML requirements. Cannot exceed HOEPA’s 5% Points and Fees threshold and must meet HPML.

Fannie Mae Desktop Underwriter (DU) with an Approve/Eligible recommendation.

• Income Report Documentation and Representation and Warranty Relief with Day One Certainty is acceptable for CalHFA Conventional loans along with DU.
• HFA Preferred must be selected in the Community Lender Product Field:
  
  • CalHFA subordinate loans must be entered as Community Seconds.
  • Freddie Mac Loan Product Advisor (LPA) not permitted.
  • Fannie Mae Conventional Standard Manufactured Home: Special Feature Code (SFC) 235 required.

Manual Underwriting is not permitted on Conventional loans.

Allowed

May not be used for payment of condo fees, personal property or down payment assistance.

The underwriter will condition the file for:

• MI Cert 
• CalHFA approval
• Borrower Affidavit

If borrowers are first time homebuyers, a one year home warranty protection plan must be conditioned for by the Underwriter.

A fully approved loan package must be uploaded to CalHFA’s MAS per CalHFA’s Loan Submission Checklist for program policy, compliance review and desktop underwriting validation.

• Lease Estate Properties and Community Land Trust Properties are not allowed.
• CalHFA Limited 203K program is not offered.
• CalHFA VA program is not offered at this time since VA limits the origination fee to 1.00%.
• See CalHFA and Lakeview Overlays.
• No Escrow Holdbacks

All loan files must be consistent with subordinate program guidelines in order for the loan to be applicable for purchase. CalHFA subordinate loan programs may only be used for down payment and/or closing costs. The Zero Interest Program (ZIP) is for closing costs only.

1st

Loans may be registered via Mortgage Electronic Registration System (MERS) in lieu of Assignment of Mortgage Deed of Trust.

MRI must be met/ borrower may not receive cash back on CalHFA programs. EMD refunds are acceptable but cannot exceed sourced EMD.
Lender represents, warrants, and guarantees
that no funds from any CalHFA down payment or closing cost assistance loan or grant has been used to pay off debt or as cash back to the borrower. Lender further represents, warrants, and guarantees that Lender at all times has and will continue to comply with all Guidelines and Policies, including any amendments to said Guidelines and Policies.

Apply to principal

Not Allowed

MWF

Notes are to be endorsed to Lakeview. Deed of Trust is to be assigned to Lakeview.

A request for loan documents for the 2nd TD MUST be sent to your Closer.

Documents Required on 1st Mortgage:

• Note
• Deed of Trust
• Applicable Riders to Deed of Trust
• Lenders Instructions
• Closing Disclosure
• 1st Payment Letter
• The Full Doc Package is required

MWF funds the loan

N/A

Fannie Mae Conventional Standard: American Land Title Association (ALTA®) Endorsement 7, 7.1, or 7.2 or any other endorsement required in the applicable jurisdiction for MH to be treated as real property must be included in the file.

5% at 15 days late.

The original Note is retained by the Post Closing Department until the file is ready to be shipped. The Note is to be endorsed by Mountain West Financial, Inc.

Self-funded by CalHFA

Delivery checklists have been updated to require the documents listed below:

• Legal opinion letter - CalHFA will provide on each transaction, lender to include in delivery file.
• Commitment letter - generated by CalHFA, lender to include in delivery file.
• Proof of receipt - CalHFA will automatically upload proof of receipt to Lakeview’s permanent file record.

See: Lakeview Correspondent Lending.

For the subordinate(s) file see:   CalHFA Loan Purchase Submission Checklist.

Upload file into MAS. See  CalHFA MAS Processing Tools.

Corporate Post-Closing will ship all first mortgage files to Lakeview within 10 business days after closing. 1st mortgage files are purchased weekly. Subordinates are sent to CalHFA and must be purchased concurrently with the first mortgage. The CalHFA address for the subordinate (s) to be shipped to is:

California Housing Finance Agency Single Family Lending Division Subordinate Loan Processing Unit 500 Capitol Mall, Ste 400, MS 350 Sacramento, CA 95814

N/A

4-8-22: Final Document (TPOL and Recorded Mortgage) shipments are to be sent to the below address:

Indecomm Global Services

Mail Stop: FD-BV-9902

1427 Energy Park Drive

St. Paul, MN 55108

Fannie Mae Conventional Standard Manufactured Home (MH) Delivery:

• ConstructionMethodType (Sort ID 51): Manufactured.
• ManufacturedHomeWidthType (Sort ID 33): MultiWide.
• If the MH property is located in a condo, co-op, or PUD, the related project data points are also required.

California Housing Finance Agency (CalHFA)

Main: (877) 922-5432

[email protected]

Molly K. Ellis, Training and Outreach Manager - Single Family: (916) 326-8680 [email protected]

Lakeview Loan Servicing: (855) 253-8439

CalHFA

Lakeview

Loan Program Handbooks

Lakeview Matrices & Resources Affordable Lending

500 Capitol Mall MS 950, Sacramento, CA 95814

Lakeview (Servicer only on the 1st mortgage products)

68-0181576 California Housing Finance Agency

Lakeview

Lakeview Loan Servicing