Last Updated | 12/20/2023 12:00:00 AM |
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Program Name | CalHFA FHA First Mortgage Loan Program |
Loan Type | FHA |
Max Assistance | This 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. |
Max LTV/CLTV | 96.5/105
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Min FICO Score | Each borrower must have a minimum of: 640 FHA 660 FHA Manufactured Determining the score to use for program qualification:
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Max DTI Ratio | • 50.00%: Credit Score ≥ 700 with AUS approval. No manual underwrites. • 45.00%: Credit Score <700 and Manufactured homes. |
Property Type | 1-Unit SFR, Condo and Manufactured Homes, Guest Houses, Granny/In-Law Units are eligible for CalHFA financing under the following conditions:
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First-Time Homebuyer | The CalHFA FHA 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. |
Max Sales Price/Max Loan Amount | FHA Mortgage Limits by County Look up Tool: FHA Mortgage Limits (hud.gov) CalHFA has eliminated sales price limits. For manufactured, the sales price of a new MH may include bona fide and documented costs associated with transportation, site preparation, and dwelling installation at the site. |
Product Codes | FF30CALHFA - FHA FIXED 30YR CALHFA |
Special Alerts/Comments | 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. For all the details please read Program Bulletin #2023-01 - Use of CalHFA Down Payment Assistance |
These program parameters pertain to the housing agency’s guidelines as of the last known agency change. Program guidelines should be confirmed with the respective agency prior to loan submission to ensure the use of the most current parameters. When combined with any program, the stricter guidelines will always prevail.
Program Name | CalHFA FHA First Mortgage Loan Program |
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Maximum Assistance Amount | This 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. |
Program Type | 1st Mortgage |
State | CA |
County | Statewide |
Repayment | Fully amortized, 30 years fixed |
Special Alerts/Comments | 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. For all the details please read Program Bulletin #2023-01 - Use of CalHFA Down Payment Assistance |
Use of Funds | 1st mortgage financing to help first time 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 Rate | 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 |
Status | Active |
Eligible 1st Mortgage Type | FHA |
Eligible 1st Mortgage Types Notes | CalHFA FHA |
MCC Permitted | Yes Not for underwriting purposes |
Mortgage Insurance |
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Equity Sharing | If using secondary financing other than the HFA DPA: Please note shared equity finance agreements are an ineligible source of subordinate financing, per Lakeview. |
Last Updated | 12/20/2023 12:00:00 AM |
Comments | RMCC instructions:
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First Time Homebuyer | The CalHFA FHA 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. |
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Homebuyer Education Requirement |
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Income Limits | The income of all borrowers cannot exceed the published CalHFA income limits established for the county in which the property is located. |
Income Calculation Method | 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:
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Minimum FICO | Each borrower must have a minimum of: 640 FHA 660 FHA Manufactured Determining the score to use for program qualification:
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Debt To Income Ratio | • 50.00%: Credit Score ≥ 700 with AUS approval. No manual underwrites. • 45.00%: Credit Score <700 and Manufactured homes. |
Borrower Contribution | CalHFA does not require a minimum borrower investment from the borrower. Follow GSE and MI guidelines per product type. |
Maximum Assets | Follow GSE and MI guidelines. |
Minimum Reserves | MWF overlay of 2-month reserves on manufactured homes does not apply to CalHFA loans. For manually underwritten loans, FHA requires 1-month reserves. |
Other Borrower Eligibility Requirements | 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]:
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Co-Signers | Not Allowed |
Non-Occupant Co-Borrowers and Co-Signers |
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Eligible Property Types | 1-Unit SFR, Condo and Manufactured Homes, Guest Houses, Granny/In-Law Units are eligible for CalHFA financing under the following conditions:
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Maximum Units | 1 |
Ineligible Properties | 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. |
Occupancy | Home must be primary residence. |
LTV/CLTV | 96.5/105
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Max Sales Price/Max Loan Amount | FHA Mortgage Limits by County Look up Tool: FHA Mortgage Limits (hud.gov) CalHFA has eliminated sales price limits. For manufactured, the sales price of a new MH may include bona fide and documented costs associated with transportation, site preparation, and dwelling installation at the site. |
High Balance Loan Amount | 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. |
Home Warranty / Termite Inspection | Home Warranty:
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Additional Subject Property Requirements | Non-borrowing spouses are not allowed to go on Title. |
Other Property Owned | Not Allowed |
Hazard Insurance | 1st Mortgage Clause: Mountain West Financial, Inc.
2nd Mortgage Clause and 3rd (if applicable) Mortgage Clause: California Housing Finance Agency It’s successor and/or assigns Single Family Servicing – MS 980 500 Capitol Mall, Suite 400 Sacramento, CA 95814 |
Hazard/Flood Insurance Max Deductible | 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). |
Impound Requirements |
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Appraisal Requirements | 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. |
Comments | None |
Lender Participation Info | Required for MWF Corporate. MWF has an executed agreement with CalHFA. |
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Training Requirements | MWF training and successful completion of certification quiz is required. See MWF Training then select “Grow Your Business”, then select "Certification Training”. Agency training is not required, but highly recommended. CalHFA live training classes are $15 per registrant. |
Comments | None |
1st Mortgage Origination Fee | 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 broker (not to exceed 3%) and will include the underwriting and processing fees. The origination fee may not be greater than the standard compensation plus processing fee. If the total fees exceed 3.00%, the broker must reduce the origination fee accordingly. If the borrower is charged more than 3.00% in total, the broker is responsible for reimbursement to the borrower. |
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1st Mtg Underwriting Fee | Normal and customary. MWF underwriting fee: $1095. |
1st Mortgage Processing Fee | 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 compensation plus your processing fee. For example, if your standard 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. |
1st Mtg Tax Service Fee | Not charged to borrower |
Compliance Review Fee | N/A |
Master Servicer Funding Fee | $250 (Section B of LE) Note for Disclosures and CD tech: Label as Master Servicer |
Other 1st Mortgage Fees | MERS totaling $25.00 to MWF. |
2nd Mortgage Processing Fee | N/A |
Other 2nd Mortgage Fees | N/A |
Other Fees | None |
Lock Time Frame | MWF will accept locks from 8:30 AM to 2:00 PM PT. To view rates, please visit: CalHFA Rates |
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# Days for Rate Lock | All locks will be issued for 30 days. |
Extension Policy | Extension, 1st Mortgage Extension Fee / Subordinate Extension Fee as of May 20,2022:
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. |
Cancelation Policy | 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. |
Additional Lock Requirements | See MWF Rate Lock Policies and Procedures. See Processing Tools & Forms for Lenders & Realtors | CalHFA |
Loan Submission | The Originator is to follow standard input procedures that apply to a regular 1st mortgage. |
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BOLT Input | Prior to the first/initial CalHFA loan submission to MWF, Originator must be MWF CalHFA certified. This certification does not expire. See Certification Training under Grow Your Business tab in BOLT. Originator is to submit loan in BOLT. Originator is to issues initial disclosure. |
Product Code | FF30CALHFA - FHA FIXED 30YR CALHFA |
Linked Loan Product Code | |
Comments | None |
1st Mortgage Registration and Disclosures | Full Disclosure Package to include all Federal, State, and CalHFA forms:
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2nd Mortgage Registration and Disclosures | N/A |
Closing Disclosure | Follow the standard procedures for generating disclosures. All state required disclosures including Initial and Final docs, with an LE and CD are to be issued for CalHFA 1st, if applicable also for Myhome 2nd, and Zip 3rd’s |
QM | Exempt from QM and ATR, thus the QM Points and Fees test does not apply. |
HPML | 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. |
Comments | 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. |
AUS | FHA: CalHFA will accept the most recent version of:
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Manual Underwriting | Manual Underwriting is allowed on FHA loans with the following parameters:
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Gift Funds | Allowed |
Seller Contribution | May not be used for payment of condo fees, personal property or down payment assistance. |
Prior-to-Doc Conditions | The underwriter will condition the file for:
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Prior-to-Funding Conditions | If borrowers are first time homebuyers, a one-year home warranty protection plan must be conditioned for by the Underwriter. |
Compliance File | 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. |
MWF Overlays |
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Comments | 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. For all the details please read Program Bulletin #2023-01 - Use of CalHFA Down Payment Assistance |
Lien Position | 1st |
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MERS | Loans may be registered via Mortgage Electronic Registration System (MERS) in lieu of Assignment of Mortgage Deed of Trust. |
Max Cash Back | MRI must be met/ borrower may not receive cash back on CalHFA programs. EMD refunds are acceptable but cannot exceed sourced EMD. |
Excess Funds | Apply to principal |
Escrow Holdbacks | Not Allowed |
Doc Provider | MWF |
Note Holder | Notes are to be endorsed to Lakeview. Deed of Trust is to be assigned to Lakeview. |
Requesting Docs | A request for loan documents for the 2nd TD MUST be sent to your Closer. Documents Required on 1st Mortgage:
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Wiring of Funds | MWF funds the subordinate liens on behalf of CalHFA |
Notice Prior to Funding | N/A |
Title Insurance | 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. |
Required Documents | The process will remain the same as a standard Conventional loan file. Please make sure to review the Documents to ensure the appropriate Note, Deed and Misc. forms print in the closing package. Please see Loan Checklists section of CalHFA Tools, Affidavits & Docs. Signature lines and signatures must match the loan documents. |
Late Payment Information | 4% at 15 days late. |
Collateral Process | 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. |
Funding Source | Agency Self Funded |
DPA Source Documentation | Legal opinion letters are no longer required for HFA FHA loans. Commitment letters and all other requirements are still required. See FHA handbook section 4000.1.II.A.4.ii |
Comments | Accepts eSigned closing docs and hybrids. Does not allow the Note, Security Instruments and applicable riders or docs that require notarization or witnesses to be eSigned. |
Credit Package Delivery Checklist | See: Lakeview Correspondent Lending. For the subordinate(s) file see: CalHFA Loan Purchase Submission Checklist. |
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Compliance File Delivery/Checklist | Upload file into MAS. See CalHFA MAS Processing Tools. |
# of Days to Purchase File | 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 |
Post Closing Requests | N/A |
Post Closing Additional Requirements | 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 |
Offering Agency | California Housing Finance Agency (CalHFA) |
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Agency Contact Information | Main: (877) 922-5432
Molly K. Ellis, Training and Outreach Manager - Single Family: (916) 326-8680 [email protected]
Lakeview Loan Servicing: |
Website Links | CalHFA Lakeview |
Program Flyer/Guidelines | Loan Program Handbooks Lakeview Matrices & Resources Affordable Lending |
Program Provider Type | Government |
Address | 500 Capitol Mall MS 950 Sacramento, CA 95814 |
Master Servicer | Lakeview (Servicer only on CalHFA 1st mortgage products) |
EIN/Tax ID | 68-0181576 California Housing Finance Agency |
Investor | CalHFA |
Program Administrator | Lakeview Loan Servicing |
Comments | None |