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CalHFA ZIP Program

California

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Assistance

3%

Of the purchase price, as the program sets it

Income limit

150% AMI

Of area median income; varies by county and household size

Price cap

$765,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 30 years

What is CalHFA ZIP Program?

CalHFA ZIP Program is a forgivable loan for homebuyers in California.

  • CalHFA ZIP (Zero Interest Program) provides 2% or 3% of the first mortgage loan amount as a zero-interest forgivable loan for closing costs. Must be paired with a CalHFA first mortgage. Forgiven when first mortgage is paid in full; no monthly payments required.
  • 2% or 3% of first mortgage loan amount for closing costs.
  • 0% interest, zero monthly payments.
  • forgiven when first mortgage is paid in full.
  • must be paired with a CalHFA first mortgage.
  • available statewide in California.
  • Funding comes from State.

How much assistance does it provide?

CalHFA ZIP Program provides assistance worth 3% of the purchase price, as set by the program.

  • Award tier “ZIP 2%”. Who qualifies: All CalHFA-eligible borrowers; paired with any CalHFA first mortgage.
  • Award tier “ZIP 3%”. Who qualifies: All CalHFA-eligible borrowers; paired with any CalHFA first mortgage.
  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

CalHFA ZIP Program is forgiven after 30 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Sale, Refinance, and Maturity Date.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

CalHFA ZIP Program is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • A minimum 660 credit score
  • A completed homebuyer education course, through HUD-approved homebuyer education required; same requirement as paired CalHFA first mortgage
  • Residency: State Resident
  • Citizenship or immigration status: U.S. Citizen or Permanent Resident
  • Must be paired with a CalHFA first mortgage; cannot be used as a standalone program. Eligibility requirements follow the paired CalHFA first mortgage program.

The program excludes

  • Purchases above the $765,000 price cap
  • Households above 150% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

CalHFA ZIP Program limits household income to 150% of the area median income, which varies by county and household size.

  • Income limits tied to paired CalHFA first mortgage program; must meet CalHFA county-specific income limits. No independent income limit for ZIP itself.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

CalHFA ZIP Program caps the purchase price at $765,000.

  • Eligible property types include Single Family, Condo, Townhouse, and Manufactured Home.
  • Manufactured homes are eligible.

Where does it apply?

CalHFA ZIP Program serves buyers purchasing anywhere in California.

How do you apply?

Applications for CalHFA ZIP Program go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HUD-approved homebuyer education required; same requirement as paired CalHFA first mortgage.

  2. Contact the administering agency to reserve funds

    Funds are reserved through First-Come-First-Served, and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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