CalHFA MyHome Assistance Program

What is the CalHFA MyHome Assistance Program?

CalHFA announced a new first time homebuyer assistance program that can be used for down payment or as closing cost assistance.

CalHFA’s MyHome Assistance program provides 3.5% of the sale price in the form of a ‘silent second’ loan with payments deferred for 30 years.  This 3.5% assistance satisfies the 1st lien’s minimum down payment requirement.

Unfortunately, the MyHome Assistance Program can ONLY be combined with a CalHFA 1st lien program.  It cannot be piggybacked with a lenders own 1st lien similar to how CHDAP could be structured.

Buyer Beware: Lenders/banks….especially mortgage brokers, have been steering or scaring buyers away from using down payment assistance programs.  Many do this because these programs are less profitable for them, they simply aren’t certified to offer the program, or don’t understand how they work.

==> Apply for CalHFA MyHome Assistance Program

MyHome Assistance Borrower Requirements

  • Must be a true first time home buyer (meaning you haven’t owned a home in the last 3 years)
  • Minimum 640 credit score
  • Primary occupied residence only
  • Complete a first time homebuyer education class
  • Non-occupied co-signers are allowed (with FHA 1st lien)
  • Maximum DTI ratio is 45%

MyHome Assistance Loan Terms

  • Works with CalHFA Conventional or CalHFA FHA 1st lien programs
  • 3.5% assistance is in the form of a silent 2nd lien @ 2.5% simple interest
  • Payments are deferred for the life of the 1st mortgage
  • Must be be paid back if you refinance or sell (no penalties)
  • Can be paired with a MCC Tax Credit
  • Max CLTV is 105%
  • Cannot be paired with the Extra Credit Teacher Program

MyHome Property Requirements

  • Home cannot exceed CalHFA county sales price limits
    • Riverside County – $400,000
    • San Bernardino Cty – $400,000
    • Los Angeles County – $600,000
    • Orange County – $600,000
    • San Diego County – $600,000
    • Ventura County – $600,000
  • SFR/PUD/Condo 1 unit
    • Guest houses, granny units and in-law quarters may be eligible
  • 5 acre property limit on size of property
  • No leaseholds or land trusts

MyHome Assistance Income Limits

  • Cannot exceed CalHFA’s published county income limits.  Limits are determined based on the type of loan you are using (Conventional or FHA) and number of people living in your household.
  • Non-occupant co-signers are allowed to help a borrower qualify for a larger loan without the co-signers income counting towards the program’s income limit.

How to Apply for CalHFA MyHome Assistance Program

Guess what…..most likely this is not the only assistance program you may be eligible for.  The only way to find out which program will provide the most assistance for you, and compare options, is contact an approved CalHFA loan officer (like me) who can offer assistance programs from multiple agencies.

You can reach Brad or one of his team members here or call direct (951) 215-6119.

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