Author bio section

I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

CalHFA 1st mortgage + CHDAP 2nd mortgage = 99% LTV or 1% downpayment loan for California First Time Home Buyers.

Here’s how it works:

CalHFA (California Housing Finance agency) FHA loan offers financing up to 96.5%. California Homebuyer’s down payment assistance program (CHDAP) provides a deferred payment junior loan (2nd mortgage) up to 3% of the purchase price; 2.5% of which can be used towards downpayment and the rest .5% can be used towards closing cost. See below:


How to qualify for CalHFA FHA loan and the Downpayment Assistance Program:

  • You have to be a First Time Home Buyer. A First Time Home Buyer is someone who has not owned or occupied a house in last 3 years.
  • A minimum contribution of 1% is required from your own funds – can be a gift from a relative.
  • You need to meet moderate income limits established for the county in which you are purchasing.
  • You need to meet Sales Price Limits for the county in which the property is located.

CalHFA Loan Interest Rates:

At the time of writing this post, the interest rate on CalHFA FHA loan first mortgage is 4.25% and if you combine that with CHDAP as the 2nd mortgage the interest rate goes down to 4.125%. This is substantially lower than the prevailing rates for both FHA and Conventional mortgages for California properties.

If you are a First Time Home Buyer in San Jose, San Francisco Bay Area or rest of California contact me so that we can help you qualify for this program.

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