BORROWER REQUIREMENTS  |  HOMEBUYER EDUCATION  |  PROPERTY REQUIREMENTS  |  TARGETTED AREAS  |  LOCATING AREAS

CalHFA

California Housing Finance Agency

Borrower Eligibility

Are You a First-Time Homebuyer?

To know for sure, you should understand that a first-time homebuyer is defined as someone who has not owned and occupied their own home in the last three years. That means if you've never owned a home, you're a first-time homebuyer. It also means that if you owned your home three or more years ago, but sold it, you are right back to being a first-time homebuyer again, and you can take advantage of all of the benefits of CalHFA's first-time homebuyer programs.

There are two exceptions to the first-time homebuyer rule that may waive the requirement of being a first-time homebuyer:
  1. You are purchasing a home in a federally designated targeted area
  2. You are a veteran

Borrower Requirements

Each loan program that CalHFA offers to first-time homebuyers can have different criteria for income limits, minimum credit scores, citizenship etc. To learn about specific requirements and benefits for each program, review the program descriptions on the Loan Programs tab.

Visit our Mortgage & Eligibility Calculators section to assist you in estimating your monthly payments, how much you can afford, and which CalHFA programs you may be eligible for.

In general these are borrower eligibility requirements for all CalHFA programs:
  • You must be a U.S. citizen, permanent resident or other qualified alien.
  • You will need to meet credit, income and loan requirements of the CalHFA-approved lender and the mortgage insurer.
  • You will need to live in the home you are purchasing for the entire term of the loan, or until the home is sold or refinanced.
  • CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
  • You must be a first-time homebuyer, which is defined as someone who has not owned and occupied a home in the past 3 years.
    • Exceptions to this rule are if you are purchasing a home in a targeted area or if you are a veteran. These exceptions can allow non-first-time homebuyers to apply for a CalHFA loan.
Be sure to check the borrower eligibility section of each individual loan program for program-specific requirements such as income limits and FICO scores.

Homebuyer Education

Because CalHFA firmly believes that homebuyer education is critical to your success and happiness as a homeowner, homebuyer education is required on all first-time homebuyer programs that CalHFA offers. We will accept homebuyer education counseling certificates online, in-person, or by phone. Here are some examples of providers:
  • Freddie Mac Homebuyer Counseling Counselors/Administrators Search
  • HUD-approved Housing Counselors
  • NeighborWorks America
  • U.S. Department of Housing and Urban Development
    451 7th Street, S.W., Washington, DC 20410
    Telephone: (202) 708-1112
  • Private Mortgage Insurers approved by Fannie Mae. Check private mortgage insurer's web site for homebuyer counseling availability.

Property Eligibility

Property Requirements

All types of properties, from single family homes to condominiums, throughout the entire state can be eligible for CalHFA financing. There is a limit on the sales price, however, and these limits vary depending on the county in which the home is being purchased.

There are other types of housing requirements and restrictions that also need to be considered such as manufactured housing, duplexes, acreage, etc. Each of these criteria can be unique to each program, so visit the Loan Programs tab to determine what types of properties are eligible according to each individual program.

In general these are property eligibility requirements for all CalHFA programs:
  • The home must be located in California.
  • The home must be your primary residence.
  • The sales price of the home must be less than the allowable sales price limits.
  • There is a five (5) acre maximum on the size of the property.
  • The home must be a single family residence (detached).
  • The home can be a condominium or attached unit in a planned unit development (PUD). (Check with your lender for eligible condominiums.)
Be sure to check the property eligibility section of each individual loan program for program-specific requirements such as manufactured housing and leaseholds/land trusts.

CalHFA FHA (Targeted Areas) Loan Program

Areas that are "targeted" by the Federal Government were identified in the 2000 Census as areas in California where 70 percent of the families who live there earn an income that is 80 percent or less than the statewide median income. Thirty-three (33) of California's 58 counties have targeted areas - with Los Angeles having almost half.

(While cities, counties and other governmental agencies may also have specific areas in their jurisdiction "targeted" for other program purposes, only those census tracts identified by the Federal Government as "targeted" are used for CalHFA's purposes, as it relates to a waiver of the first-time homebuyer requirement, sales price limits and certain income limits.)

How do I locate Targeted Areas in California?

  • Use this list of qualified census tracts by county to assist you in finding and viewing maps of the targeted areas within each county. Open the list, and then click on the different tract codes to view a map of each targeted area.
  • If you have a street address, you can find the census tract number in which the property is located to compare with the list above by visiting the FFIEC web site