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.

CalHFA ZIP Program is forgiven after 30 years, so a homebuyer 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.

CalHFA ZIP Program is open to homebuyers who will live in the home as their primary residence. The program lists a minimum credit score of 660. A homebuyer education course is required, through HUD-approved homebuyer education required; same requirement as paired CalHFA first mortgage. Residency requirement: 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.

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.

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.

CalHFA ZIP Program serves homebuyers purchasing anywhere in California.

Applications for CalHFA ZIP Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through First-Come-First-Served. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.