CalHFA MyHome Assistance Program - FHA

CalHFA FHA and CalPLUS FHA 1^st mortgages: MyHome is not to exceed 3.50% of the sales price or appraised value, whichever is less.

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

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.

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

• 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
****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.

Each borrower must have a minimum of:
640 FHA
660 FHA 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.

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.
FHA single unit condo approvals are not permitted

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

Singlewide manufactured homes are not eligible for financing.

Home Warranty:

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

FHA Manufactured Housing (MH):

• FHA defines a “manufactured home” as a dwelling of at least 400 square feet and at least 12 feet wide, constructed to the “HUD Code” for manufactured housing that is built on a permanent chassis, installed on a permanent foundation system, and titled as real estate.
• Must meet FHA 4000.1, CalHFA and Lakeview requirements.

1st Mortgage Clause:
Mountain West Financial, Inc. 1209 Nevada Street, Redlands, CA 92374

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 always required on Conventional HPML loans.
• Impound rollover not allowed.

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.
See CalHFA’s training calendar.

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.

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.

• 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 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.

• Maximum DTI ratio: 43.00% 
• Minimum Credit Score: 660

The underwriter will condition the file for:

• MI Cert 
• CalHFA approval
• Borrower Affidavit

• 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%.
• No excrow holdbacks
• 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.

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

Title Insurance can be included with the 1st lien on one Title policy as long as the coverage is enough to cover both the 1st, 2nd, and 3rd liens.

FHA Manufactured Home: 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.

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.

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