The California Housing Finance Agency (CalHFA) has been one of the most active state housing finance agencies in the country, running mortgage relief for struggling homeowners alongside first-time buyer programs that have helped more than 250,000 California families become homeowners since 1975. Real estate professionals working in the state have relied on CalHFA programs to close deals that would not otherwise have been possible, and agency staff have worked to keep those programs responsive to shifts in the market.

CalHFA's Core Programs

CalHFA offers a range of tools that fall into two main buckets.

First mortgages. The agency underwrites conventional, FHA, VA, and USDA first mortgages through a network of participating lenders. These mortgages are priced competitively and come with the option to layer in CalHFA down payment assistance.

Down payment and closing cost assistance. The MyHome Assistance Program provides a deferred second mortgage to cover down payment and closing costs, up to a percentage of the purchase price. The Zero Interest Program (ZIP) covers closing costs on certain CalPLUS FHA loans. The Dream for All Shared Appreciation Loan, launched in March 2023, provides up to 20% of a home's price to first-time, first-generation buyers.

Most programs require household income to fall within county-based limits and the buyer to complete homebuyer education from a HUD-approved agency.

The California Mortgage Relief Program

On the relief side, CalHFA administered about $1 billion in federal Homeowner Assistance Fund dollars through the California Mortgage Relief Program. That program provided grants of up to $80,000 per household to cover past-due mortgage payments, property taxes, partial claim deferrals, and related costs for homeowners who had fallen behind because of the pandemic. By closure, the program had assisted more than 37,000 households with over $907 million in grants. It is no longer accepting new applications.

CalAssist Mortgage Fund

More recently, CalHFA launched the CalAssist Mortgage Fund using National Mortgage Settlement dollars. The fund provides mortgage assistance to California families affected by declared disasters, initially focused on Los Angeles homeowners hit by recent wildfires. Qualifying households can receive up to a full year of mortgage payments, which do not need to be repaid.

In October 2025, Governor Newsom expanded CalAssist eligibility to more families by raising income limits and broadening the list of qualifying disasters. The fund has $105 million available and serves as a smaller, disaster-specific successor to the pandemic-era Mortgage Relief Program.

Expert Insights from the Field

Mortgage loan officers and real estate agents who work with CalHFA borrowers often highlight a few practical points.

Know the timeline. CalHFA programs sometimes carry tighter deadlines than conventional loans. Reservation windows, document deadlines, and rate locks need to be tracked carefully.
Lenders matter. Not every lender is approved by CalHFA, and not every approved lender has equal experience closing CalHFA loans. Working with a lender that has closed dozens of CalHFA transactions is faster and smoother.
Layer carefully. CalHFA programs sometimes combine with local down payment assistance, but sometimes they conflict. A knowledgeable lender can walk a buyer through whether stacking programs will actually close or whether the layered assistance disqualifies a file.
Dream for All fundamentals. The shared appreciation loan can save a buyer tens of thousands in upfront cost, but the back-end repayment rules around appreciation sharing mean buyers need to understand what they are signing.

How Homeowners Tap Mortgage Help

Homeowners facing mortgage distress in California today no longer have the COVID-era Mortgage Relief Program available, but they still have several options.

Contact the loan servicer. Every federally backed loan offers some form of loss mitigation, including forbearance, loan modification, repayment plans, and partial claims. Servicers are required to review options with borrowers in good faith.
Work with a HUD-approved housing counselor. Counseling is free and can be done by phone or in person. Counselors know the menu of servicer options and can advocate with the servicer on a borrower's behalf.
Check CalAssist for disaster-related hardship. Homeowners whose trouble ties back to a declared disaster should see if CalAssist applies.
Legal aid for foreclosure risk. Some of the legal aid infrastructure funded by HAF dollars continues to help homeowners navigate foreclosure proceedings.

How Real Estate Professionals Use CalHFA

For real estate agents and lenders, CalHFA is less a single program than a toolkit. A buyer who falls outside conventional financing might still qualify for a CalPLUS FHA mortgage with ZIP closing cost help and MyHome down payment assistance. A first-generation buyer might stack a Dream for All shared appreciation loan on a CalHFA first. A buyer with tight income might use income limits at the top of the county range to still qualify for MyHome.

The key for agents is knowing enough about the programs to ask the right questions: household income, first-time status, first-generation background, and property type. From there, a CalHFA-experienced lender can figure out which combination fits the buyer's situation.

Looking Ahead

CalHFA continues to evolve its mix of programs as the California housing market shifts. First-time buyer affordability remains one of the biggest challenges in the country, and mortgage relief needs continue to arise with each new wildfire, flood, or economic downturn. The agency's role is ensuring that both sides of the equation — helping new owners buy in, and helping existing owners stay put — remain supported by thoughtful programs.

CalHFA Mortgage Relief: Expert Insights on Real Estate Solutions