Maximizing FHA Loans in California: CalHFA vs. CalPLUS Programs

FHA loans are a fantastic tool for California homebuyers who might not have a massive down payment saved up or have less-than-perfect credit. Through the state's CalHFA programs, buyers have access to two distinct FHA pathways: the standard CalHFA FHA Program and the CalPLUS FHA Program.

What is the CalHFA Program?

This is an FHA-insured loan featuring a standard 30-year fixed interest rate first mortgage. Like most CalHFA programs, it requires you to be a primary resident and complete an approved homebuyer education course.

Occupancy

You must occupy the property as your primary residence. These programs are not available for investment properties or second homes.

Education

Completion of an approved homebuyer education course is required. This ensures you understand the responsibilities of homeownership and the loan process.

Property Type

Eligible properties include single-family homes, approved condominiums, and manufactured housing that meet FHA requirements.

What is the CalPLUS FHA Program?

The CalPLUS FHA program is also an FHA-insured first mortgage, but it comes with a slightly higher 30-year fixed interest rate. Why choose a higher rate? Because CalPLUS FHA is combined with the CalHFA Zero Interest Program (ZIP), which specifically helps cover your closing costs. If upfront cash to close the loan is a major hurdle, the CalPLUS option can be a game-changer.

Both FHA programs allow you to purchase single-family homes, approved condominiums, and manufactured housing.

Next Steps: Explore our FHA Loans and talk to one of our advisors to determine which FHA structure works best for your California home purchase.

Frequently Asked Questions

The main difference is that CalPLUS FHA comes with a slightly higher interest rate but includes the CalHFA Zero Interest Program (ZIP) to help cover closing costs, while CalHFA FHA has a standard rate but doesn't include closing cost assistance.

CalHFA FHA typically has lower monthly payments due to the lower interest rate. However, if you need help with closing costs, CalPLUS FHA might be more affordable overall despite the higher rate.

Yes, both CalHFA FHA and CalPLUS FHA can be paired with CalHFA's MyHome Assistance Program for down payment help, in addition to the closing cost assistance from ZIP with CalPLUS.

Credit score requirements typically start at 580-620 for CalHFA FHA programs, but higher scores may help you qualify for better rates and terms.

Yes, both CalHFA FHA and CalPLUS FHA programs are available throughout California, though income limits and maximum purchase prices vary by county.

A Complete Guide to California First-Time Home Buyer Programs

Learn about CalHFA programs and specialized loan options for California first-time homebuyers...

Overcoming California's Down Payment Hurdle: The MyHome Assistance Program

Discover how the MyHome Assistance Program can help bridge the down payment gap...