CalHFA FHA Loan · Updated July 2026
3.5% down. Covered. The CalHFA FHA loan explained.
FHA is the widest door into homeownership — forgiving on credit, modest on down payment. Pair it with CalHFA's MyHome assistance and the down payment itself can drop to roughly zero out of pocket. Here's the honest 2026 picture for San Diego buyers.
The CalHFA FHA loan in one sentence
A 30-year fixed FHA main mortgage from a CalHFA-approved lender, requiring 3.5% down — which MyHome assistance can cover entirely — with credit requirements generally in the mid-600s.
What is a CalHFA FHA loan?
It's an FHA-insured mortgage — the same government-backed loan type used by millions of first-time buyers — delivered through CalHFA with one decisive upgrade: it unlocks CalHFA's assistance layers. A regular FHA loan makes you bring the 3.5% down payment yourself. A CalHFA FHA loan lets MyHome bring it for you, as a second loan with no monthly payment — nothing is due on it until you sell, refinance, or pay the home off.
Everything else works like a standard FHA mortgage: 30-year fixed rate, a home you'll actually live in, and FHA's famously flexible loan review. You must be a first-time buyer (no home ownership in the last 3 years), earn under the CalHFA income limit — $259,000 in San Diego County for 2026 — and complete a homebuyer education course.
The headline: your down payment, handled
FHA's minimum down payment is exactly 3.5%. MyHome provides up to exactly 3.5% of the purchase price (or the home's appraised value, if that's lower), with no dollar cap when paired with a CalHFA FHA loan. The two numbers were made for each other. Here's what that looks like at real San Diego price points:
| Purchase price | FHA minimum down (3.5%) | MyHome provides (3.5%) | Down payment out of pocket |
|---|---|---|---|
| $550,000 condo (El Cajon, National City) | $19,250 | $19,250 | $0 |
| $700,000 townhome (Chula Vista, Vista) | $24,500 | $24,500 | $0 |
| $900,000 single-family (San Diego) | $31,500 | $31,500 | $0 |
Your remaining cash need is mostly closing costs — and that's where the stack keeps working. A CalPLUS main mortgage adds the ZIP zero-interest loan (roughly 2–3% of the first loan amount) on top of MyHome, and seller credits can cover much of the rest. See how the programs stack for the full dollar math.
The honest trade-off: FHA mortgage insurance
Nothing on this page is free money without fine print, so here it is. FHA charges mortgage insurance two ways: an upfront premium of roughly 1.75% of the loan amount (almost always financed into the loan, not paid in cash) and a monthly premium added to your payment. At low down payments, FHA mortgage insurance generally remains for the life of the loan — it doesn't fall off when you build equity.
Compare that with the CalHFA conventional loan, where private mortgage insurance can be removed once you reach 20% or more equity. So why would anyone choose FHA? Two good reasons:
- Credit flexibility. FHA underwriting is the most forgiving in the CalHFA lineup — generally mid-600s scores, with more tolerance for past credit events and higher debts-vs-income balance ratios.
- MI pricing at lower scores. Conventional PMI is priced by credit score; at lower scores it can cost more per month than FHA's insurance. FHA charges everyone roughly the same, which quietly favors buyers whose credit is still recovering.
Many buyers use FHA as the entry loan, then refinance into a conventional loan later once equity and credit have grown — shedding the FHA insurance at that point. (Note: refinancing the main mortgage triggers repayment of MyHome, so that decision deserves real math, not vibes.)
Don't let the letters scare you
"FHA" has a reputation problem in competitive markets, but a well-prepared FHA offer with strong pre-approval documentation closes on schedule like any other loan. The difference is preparation, not the loan type.
Loan limits: San Diego's higher loan-limit advantage
San Diego County is classified as a high-cost county, so its FHA loan limit is well above the national standard — over $1 million in 2026. In practice, that means nearly all of the county's entry-level inventory is in range: condos in El Cajon and National City, townhomes in Chula Vista and Oceanside, and a meaningful share of detached homes in Escondido and beyond.
Who the CalHFA FHA loan fits
- Credit in the mid-600s — or a file with past bumps that conventional underwriting would price harshly.
- Savings that cover closing costs but not a down payment — MyHome handles the 3.5%, ZIP and seller credits shrink the rest.
- Income under $259,000 (San Diego County, 2026) — check your county's limit.
- First-time buyers planning to live in the home — single-family, condo, townhome, or most manufactured homes.
- Buyers with 700+ credit should compare conventional first — the removable-PMI math often wins. See the CalHFA conventional page.
CalHFA FHA loan FAQ
What credit score do I need for a CalHFA FHA loan?
Generally a mid-600s score or better, with final approval depending on the full file — income, debts, and the loan review. FHA is the most credit-forgiving of the CalHFA main mortgages, which is why it's the default recommendation for buyers still rebuilding credit.
Can MyHome really cover the whole 3.5% down payment?
Yes. FHA requires a minimum 3.5% down payment, and MyHome provides up to 3.5% of the purchase price or appraised value (whichever is less) when paired with a CalHFA FHA main mortgage — with no dollar cap. On most purchases the two numbers match, so your down payment is covered and your remaining cash need is mostly closing costs.
How does FHA mortgage insurance work?
FHA charges an upfront premium of roughly 1.75% of the loan amount, which is typically financed into the loan, plus a monthly premium. At low down payments, FHA mortgage insurance generally stays for the life of the loan — the main trade-off versus a conventional loan, where PMI can be removed once you reach 20% or more equity.
What are the FHA loan limits in San Diego County for 2026?
San Diego County is a higher loan-limit (high-cost) county, so its FHA loan limit is well above the national standard — over $1 million in 2026. That puts nearly all of the county's entry-level condos, townhomes and single-family homes within FHA range.
Should I choose the CalHFA FHA loan or the CalHFA conventional loan?
Rough rule: mid-600s credit or thinner savings usually points to FHA, which pairs with 3.5% MyHome assistance and forgiving underwriting. Stronger credit (roughly 700+) often does better with the CalHFA conventional loan, because private mortgage insurance is priced by credit score and can be removed at 20% equity. The honest answer requires pricing both — which a CalHFA-approved lender can do side by side.
Program details summarized from calhfa.ca.gov as of July 2026. CalHFA sets and may change all program terms; this page is educational and not a loan commitment.
Find out if FHA + MyHome is your path.
A few questions, no credit pull, and you'll know whether the CalHFA FHA stack fits — and roughly what you'd bring to closing.