FHA, CalHFA and Conventional-Conforming Loans… What’s the Difference?

With all the talk about FHA, CalHFA and Conventional-Conforming loans, one can get a bit confused on all the details. To make it a bit easier to compare the three we have a list below that shows the main points of the three types of loans.  

These details are current as of today, but should you like to know details again down the road, we would suggest getting in touch with a lender you can trust to explain the details… our affiliate lender Home Services Lending is always willing to talk to our clients about what’s available to them in this ever changing market, so don’t hesitate to ask!

Loan Type

• FHA
  • Max Loan Amount – $697,500
  • Income Limitations – N/A
  • Loan to Value Allowed – 97%
  • Down Payment Required – 3%
  • Credit Requirements – Not FICO driven, clean credit for last 12 months
  • Assets Needed – N/A
  • Condition of Property – HUD inspector approval needed, any health issues with condition of home must be repaired prior to closing CalHFA
• CalHFA – First Time Home Buyer’s Only
  • Max Loan Amount – $697,500
  • Income Limitations – Low Vs. Moderate Guidelines to be Followed
  • Loan to Value Allowed – 100% – min 680 FICO and 95% -  min 620 FICO
  • Down Payment Required – 5% only necessary if FICO is under 680
  • Credit Requirements – Min FICO of 620, FICO determines LTV as well
  • Assets Needed – At least 2 months Principal Interest Taxes and Insurance, can use gift money for assets
  • Condition of Property – Health/Safety issues will be addressed
• Conventional – Conforming
  • Max Loan Amount – $697,500
  • Income Limitations – Cannot exceed 120% of area’s median income
  • Loan to Value Allowed – 95%
  • Down Payment Required – 5%
  • Credit Requirements – 620 FICO or Higher
  • Assets Needed – 2 months Principal Interest Taxes and Insurance
  • Condition of Property – Health/Safety issues will be addressed