CalPLUS with ZIP Conventional Loan - Low Income
Best For: First Time Homebuyers, Low Down Payments
Conventional loan with closing cost assistance for low income California homebuyers with low mortgage insurance and down payment assistance options.
This loan program is not available in USA
Program Description
The CalPLUS Conventional Mortgage with ZIP program has a slightly higher interest rate than the standard CalHFA Conventional program and is combined with the Zero Interest Program (ZIP). ZIP provides either 2% or 3% that can be used exclusively as closing cost assistance (CCA). This loan program requires that the borrowers make less than 80% AMI (Area Median Income)—limits which are significantly lower than the standard CalHFA income limits.
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CalPLUS with ZIP Conventional Loan - Low Income
Min. Credit Score
680
Min. Down Payment
3%
Max Loan Amount
$726,200 - $1,089,300
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- May use ZIP funds for closing cost assistance
- Payments on assistance deferred for as long as you reside in the home
- Also available for manufactured homes
- Available in all of California
- 3% down payment can be covered by an assistance program
- 80% AMI income limit restrictions apply
- Only available for 1-unit primary residences
- Higher credit score requirement than other CalHFA programs
- Higher interest rate than the standard CalHFA Conventional loan
- Requires private mortgage insurance (PMI)
- Only available to first time homebuyers
Program Availability
CalPLUS with ZIP Conventional Loan - Low Incomes are available in 1 state.
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“This Conventional loan option from CalHFA offers up to 3% in closing cost assistance and can also be paired with CalHFA's down payment assistance program!"
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
50.00%
Purchase Price Limit
No Limits
Income Limit
$51,120 - $133,280
Annual Qualifying Income
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- Zero interest closing cost assistance of 2% or 3% included in the loan
- Below market interest rates and lower mortgage insurance coverage
- Can be combined with CalHFA's MyHome Assistance Program
Additional Conditions
- The CalHFA Zero Interest Program (ZIP) covers a portion of closing costs for Conventional loans. Approved buyers can receive either 2% or 3% of the first loan amount to cover closing costs. The assistance comes in the form of a second loan with zero interest, and allows payments to be deferred indefinitely as long as the borrower is living in the home.
- High balance loan amounts are allowed, but are subject to an additional fee (a percentage of the loan amount)
- Homebuyer education is required if for at least one borrower
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class is required for this loan program.
Class Name: eHome's 8-Hour Homebuyer Education or In-Person
CalHFA requires first time homebuyers using their program to complete homebuyer education and counseling. Only one borrower occupying each loan transaction needs to take the course. The course can be taken online through eHome, or in-person or virtually through NeighborWorks America or any HUD-Approved Housing Counseling Agency. The cost of the course varies by agency, and eHome's course costs $99.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
Required with less than 20% Down Payment
Type: Private Mortgage Insurance (PMI)This program requires Private Mortgage Insurance (PMI) if you are putting down less than 20% on the home you are purchasing or refinancing.
Type: No Funding Fee
This program does not have a funding fee.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 1%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Grants, Bonds & 2nd Mortgages
There are certain programs that can be combined with this CalPLUS ZIP Conventional LI program to help cover all or a portion of your down payment and closing costs, or provide additional borrower benefits.
CalHFA MyHome Assistance Program
|CalPLUS ZIP Conventional LIThe CalHFA MyHome Assistance Program provides up to 3% in down payment assistance in the form of a deferred payment mortgage.
Max. Loan Amount
$726,200 - $1,089,300
Min. Credit Score
680
Min. Down Payment:
0%
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
CalHFA Conventional Loan - Low Income
Best For: First Time Homebuyers, Low Down Payments, Lowest Rates
Conventional loan for low income California homebuyers with below market interest rates, low mortgage insurance, and down payment assistance options.
CalHFA Conventional Loan - Median Income
Best For: First Time Homebuyers, Low Down Payments
Conventional option for California homebuyers with incomes above 80% AMI that can be paired with down payment assistance of up to 3%.
Related Resources
Knowing Your Mortgage Insurance Options (Conventional Loan PMI)
PMI is an important part of getting a mortgage, but it can vary in cost. Learn about the different types and what you should consider when budgeting for it here.
Read More
First Time Homebuyer Guide
Being a first-time homebuyer has its fair share of challenges. One of your biggest obstacles will be competing against other new or seasoned buyers. While bidding wars have tapered since the previous buying season, they can still occur.
Read More
Calculate Income Limits Using Area Median Income
Income limits are used to determine whether or not a home buyer is eligible for certain mortgage programs, including down payment assistance programs or incentives that can help make home buying more affordable. It identifies the maximum income level set by each housing authority for its program participants, and varies from county to county across the US. Often, the tool used to establish this maximum income level is often called Area Median Income, or AMI.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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