CalHFA has been receiving an increased number of loan files that are inconsistent with subordinate program guidelines. This is a reminder that CalHFA subordinate loan programs may only be used for down payment and/or closing cost. 

Funds from the Forgivable Equity Builder Loan, MyHome Assistance Program or Zero Interest Program (ZIP) may not be used to pay off borrower debt. Borrowers also may not receive any cash back from these loan programs. The use of funds not consistent with CalHFA guidelines could cause loan files to be suspended and ultimately not purchased.

Thank you for your attention to this reminder. Please contact us if you have questions.