The CalPLUS Conventional Loan with ZIP is designed to help buyers who do not have enough savings for both the down payment and closing costs. When combined with a seller credit, this program has allowed many of my buyers to purchase homes with as little as $750 out of pocket.

​It’s important to consider that the MyHome Program is often a better source for assistance funds, as it can be used for both down payment and closing costs. MyHome also keeps the interest rate on your primary mortgage lower. If you only need 3% assistance, MyHome is the better option. However, if you need help with both down payment and closing costs, you should consider using the ZIP program alongside MyHome assistance. This means you will have three loans: the first mortgage, the MyHome second, and the ZIP third. As a result, you will owe 102% to 103% of the purchase price, meaning you start out underwater, but with housing market appreciation, you should be above water within a year or two.

The CalPLUS Conventional Loan is a 30-year fixed-rate mortgage that offers competitive financing for first-time buyers. When paired with the Zero Interest Program (ZIP), buyers can receive assistance to help cover closing costs, making homeownership more affordable.

Key Features:

✅ Closing Cost Assistance: ZIP provides either 2% or 3% of the loan amount, helping buyers cover closing costs with a zero-interest loan.

✅Higher Interest Rate Consideration: The ZIP program requires borrowers to accept a slightly higher first mortgage interest rate, which can increase monthly payments.

✅Deferred Payment: The ZIP assistance loan requires no monthly payments and is due only upon sale, refinance, or payoff of the primary mortgage.

✅Low Mortgage Insurance: This program provides reduced mortgage insurance costs for borrowers earning less than 80% of the area median income (AMI).

​✅Flexible Credit Requirements: A minimum credit score of 680 is required for conventional loans.

To be eligible for the CalPLUS Conventional Loan with ZIP, applicants must meet the following criteria:

✅ First-Time Homebuyer Status: You must not have resided in a property owned by you or your spouse anytime in the last three years.

✅Income Limits: Your household income must fall within CalHFA’s county-specific limits.

✅Primary Residence Requirement: The home must be your primary residence.

✅Credit Score Requirements: A minimum of 680 for conventional loans.

✅ Affordable Entry: Closing cost assistance helps reduce the upfront cash needed to purchase a home.

✅ No Monthly Payments on ZIP Loan: The assistance loan remains deferred, allowing you to focus on your primary mortgage.

✅ Lower Mortgage Insurance Costs: Buyers earning less than 80% AMI can benefit from discounted rates.

✅ ​Increased Purchasing Power: Helps buyers afford homes in competitive markets.

While the program offers significant benefits, it’s important to consider:

✅ Higher Interest Rate: The ZIP program increases the first mortgage interest rate, potentially leading to higher monthly payments.

✅ Closing Cost Responsibility: ZIP covers closing costs, but buyers should consider using seller credits or gift funds for additional expenses.

✅ Limited Availability: ZIP program availability depends on market conditions and may not always be an option.

Buyers can look up interest rates for all CalHFA programs by visiting CalHFA's official rates page.

✅ Consult an Expert: Reach out to us to understand if the CalPLUS Conventional with ZIP is right for your financial situation.

✅ Get Prequalified: Determine how much assistance you qualify for and how it impacts your mortgage.

✅ Explore Housing Options: Work with a real estate agent to identify eligible properties.

In addition to the CalPLUS Conventional with ZIP, consider these alternatives:

✅ CalHFA MyHome – Provides down payment assistance without increasing the mortgage interest rate.

✅ GSFA Platinum – Offers forgivable loans with flexible qualification criteria.

✅ CalHFA Dream for All – A shared appreciation loan that provides substantial upfront assistance.

If you need help covering closing costs but can manage a slightly higher interest rate, the CalPLUS Conventional Loan with ZIP could be the perfect fit for you. Understanding how these benefits align with your financial goals is key to making the right decision.

Ready to take the next step? Contact us today to learn more and explore your options!