CalHFA CalPLUS Conventional First Mortgage Loan Program with ZIP (HFA Preferred)

CalPLUS programs include the mandatory ZIP silent second loan for either 2.0% or 3.0% of the CalPLUS Fannie Mae Conventional 1st TD loan amount including UFMIP. ZIP may only be used with the CalPLUS Program and must be in 2nd position without the use of MyHome. If used with MyHome, then the ZIP must be in 3rd position.
CalPlus conventional is 3% of the sales price or value whichever is lesser. 

Statewide

1st: Fully amortized 30 year fixed payments.

Subordinate: Due and payable at the earliest of the following events:

• Transfer of title
• Sale of the property
• Payoff of the first loan
• Refinance of the first loan
• End of term

Borrowers are free to make payments any time prior to becoming due.
See: Borrower FAQs

The CalHFA subordinate lien programs must be repaid and are not forgiven.

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

The CalPLUS Conventional program is a conventional first mortgage with a slightly higher fixed interest rate than the standard conventional program. This loan is fully amortized for a 30-year term and is combined with the CalHFA Zero Interest Program (ZIP) for closing costs.

1st: Purchase
ZIP: Closing costs 
MyHome: Down Payment and closing costs.
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.

1st: See CalHFA Interest Rates
Zero Interest Program (ZIP): 0.00%
MyHome: See the MyHome AMP Matrix Overview. 

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.

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

FTHB Requirements vary by Program:

The CalHFA CalPLUS programs with the ZIP is for first-time homebuyers only.

• Homebuyer Education is required for at least one occupying first-time homebuyer.
• Homebuyer Education is not required for non-first-time homebuyer(s).
• All Homebuyer Education Certificates will expire the earlier of one (1) year from issuance or the expiration date on the certificate.
• The Homebuyer Education Course must be completed by one of the borrowers only if they are both first time homebuyers prior to application preferably, but at the latest, prior to the file being sent to CalHFA for review.
• If taking the in-person course, borrowers should take the class early on as it may take 10 days for a homebuyer education provider to prepare and mail the certificate.
  
  
• Virtual live or in-person Homebuyer Education through NeighborWorks America or through one of the HUD approved Housing Counseling Agencies.
• Online Homebuyer Education through eHome™: 
  • A one-on-one homebuyer counseling session in addition to the homebuyer education class is required if the eHome™ online course is taken.
  • The one-on-one counseling session may be done over the phone.
  • The one-on-one counseling session is not required if a face-to-face option through NeighborWorks or a HUD approved counseling agency is completed AND it meets the curriculum for a 8 hour class.

The income of all borrowers cannot exceed the published CalHFA income limits established for the county in which the property is located. See Income Limits.

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
• 680 Conventional Manufactured

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 per product type.

N/A

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 for CalHFA financing under 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 owner-occupied, primary residence.

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

All loans exceeding the 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 MH loans must follow guidelines outlined in Fannie Mae Eligibility Matrix.

Not Allowed

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: 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 required on Conventional HPML loans.
• Impounds are required on all Conventional loans with 90% LTV or higher 
• Impound rollover not allowed.

CalHFA requires an appraisal on all first mortgage loans. Representation and Warranty (Day 1 Certainty) relief 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.

Participation Agreement is required for MWF Corporate.
Required 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.

This fee must be manually changed in the Borrower Responsible fee screen in BOLT, Section A based on the following guidelines:

• Origination Fee: Borrower Paid Only
• Max Broker Compensation: Lesser of 2.50% or the amount of the Broker’s existing comp plan
• Max combined broker and lender fees cannot exceed the greater of 3% of the total loan amount or $3,000- If combined Broker & Mountain West fees exceed 3% of total loan amount, Broker to reduce compensation accordingly.
• No other Broker fees may be charged

MWF underwriting fee: $1095.

N/A

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

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

When locking a CalHFA 1st with a MyHome 2nd and a CHZIP 3rd, all 3 lock requests must be submitted before the loans can be locked.

Submit the lock request for 1st and MyHome 2nd, then submit the lock request for CHZIP 3rd separately.

To view rates, please visit: CalHFA Rates

All locks will be issued for 30 days. Locks for subordinate liens will have the same expiration date as the corresponding 1st lien, regardless of when they are locked.

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

Originator is to follow steps found in the CalHFA How To price.  

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 ConformX disclosure package.

Required Forms:

• CalHFA Borrower Affidavit
• ZIP Interest Rate Disclosure
• 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.

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.

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

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

Required Forms:

• CalHFA Borrower Affidavit
• ZIP Interest Rate Disclosure

CF30CAPLZ2 - CONF FIXED 30YR CALHFA PLUS ZIP 2.0%

CF30CAPLZ3 - CONF FIXED 30YR CALHFA PLUS ZIP 3.0%

• The Originator or Processor will be responsible for issuing a Full Disclosure Package on the 1st, as the Originator or Processor does on a standard 1st mortgage file.
• There are no changes in the process or disclosure requirements for the 1st mortgage. The disclosure and closing documents will mirror the exact procedure as a standard file. 
• Master Servicer Funding fee may be disclosed as payable to Master Servicer but may not use Lakeview's name.

• 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.

• All state required disclosures including Initial and Final docs, with an LE and CD are to be issued for CalHFA 1^st, Myhome 2^nd, and Zip 3^rd’s
• The second mortgage program must be selected and registered. The 1st and 2nd must be created and registered concurrently in order to properly issue disclosures. The 1st, 2nd and 3rd will require a separate loan number and each loan will need to be created.
• The system can only link a 1st and 2nd. If a 3rd is required, it will be created as its own stand-alone loan.
• The Originator or Processor is to enter a comment that there is a 1st, 2nd and 3rd and reference the 2nd and 3rd loan numbers.

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. Follow interested party contribution guidelines

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.

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.

CalHFA will require lenders to use the newest version of the Zero Interest Program (ZIP) Interest Rate Acknowledgment form. The updated form clarifies that excess ZIP funds need to be applied as a principal reduction to the ZIP loan only. CalHFA does not allow excess ZIP funds to be applied as a principal reduction to the 1st mortgage. CalHFA encourages lenders to use the updated form 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.

• The ZIP and MyHome will be drawn in the name of Mountain West Financial, Inc.
• Notes are to be endorsed to Lakeview.
• Deed of Trust is to be assigned to Lakeview.

A request for loan documents for the subordinate 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

Signature lines and signatures must match the loan documents.

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.

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

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.

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