CalHFA FHA Loan · Updated July 2026
3.5% down. Covered. The CalHFA FHA loan explained.
FHA is the widest door into owning a home. It is easy on credit and light on down payment. Pair it with CalHFA MyHome assistance and your down payment can drop to about zero out of pocket. On a $700,000 townhome, that is up to $24,500 covered for you. Here is the honest 2026 picture for San Diego buyers. Checking takes about 60 seconds, with no credit pull.
The CalHFA FHA loan in one sentence
A 30-year fixed FHA main mortgage from a CalHFA-approved lender. It asks for 3.5% down, and MyHome assistance can cover all of it. Credit requirements generally sit in the mid-600s.
What is a CalHFA FHA loan?
It is an FHA-insured mortgage, the same government-backed loan millions of first-time buyers use. CalHFA delivers it with one big upgrade: it unlocks CalHFA's assistance money. A regular FHA loan makes you bring the 3.5% down payment yourself. A CalHFA FHA loan lets MyHome bring it for you. MyHome is 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. You get a 30-year fixed rate and FHA's famously flexible loan review. You live in the home. You must be a first-time buyer, meaning no home ownership in the last 3 years. Your income must sit under the CalHFA income limit: $259,000 in San Diego County for 2026. You also 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 appraised value if that is lower. There is no dollar cap with a CalHFA FHA loan. The two numbers were made for each other. Here is what that looks like at real San Diego prices:
| 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. The stack keeps working there too. A CalPLUS main mortgage adds the ZIP zero-interest loan on top of MyHome. ZIP runs roughly 2 to 3% of the first loan amount. 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. First, an upfront premium of roughly 1.75% of the loan amount. It is almost always financed into the loan, not paid in cash. Second, a monthly premium added to your payment. At low down payments, FHA mortgage insurance generally stays for the life of the loan. It does not fall off as you build equity.
Compare that with the CalHFA conventional loan. Its 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 has the most forgiving loan review in the CalHFA lineup. It generally works from mid-600s scores. It also gives more room for past credit events and higher monthly debts.
- 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. That quietly favors buyers whose credit is still recovering.
Many buyers use FHA as the entry loan. Later, once equity and credit have grown, they refinance into a conventional loan and shed the FHA insurance. (Note: refinancing the main mortgage triggers repayment of MyHome. 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 paperwork closes on schedule like any other loan. The difference is preparation, not the loan type.
FHA loan limits: San Diego's high-cost advantage
San Diego County counts as a high-cost county. So its FHA loan limit sits well above the national standard: over $1 million in 2026. In practice, nearly all of the county's entry-level homes are in range. That covers condos in El Cajon and National City, townhomes in Chula Vista and Oceanside, and a good 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 a conventional loan review 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 all work.
- 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. The final call rests on your full file: income, debts, and the loan review. FHA is the most credit-forgiving of the CalHFA main mortgages. That is why it is the usual pick for buyers still rebuilding credit.
Can MyHome really cover the whole 3.5% down payment?
Yes. FHA asks for a minimum 3.5% down payment. MyHome provides up to 3.5% of the purchase price or appraised value, whichever is less, with a CalHFA FHA main mortgage. There is no dollar cap. On most purchases the two numbers match. 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. That cost is typically financed into the loan. FHA also adds a monthly premium. At low down payments, FHA mortgage insurance generally stays for the life of the loan. That is 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 high-cost county. Its FHA loan limit sits 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. It pairs with up to 3.5% MyHome assistance and a forgiving loan review. Stronger credit, roughly 700 and up, often does better with the CalHFA conventional loan. Its private mortgage insurance is priced by credit score and can be removed at 20% or more equity. The honest answer is to price both. A CalHFA-approved lender can do that 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.
One short quiz. About 60 seconds. No credit pull, no documents, no obligation. You'll see if the CalHFA FHA stack fits and roughly what you'd bring to closing.