CalHFA Conventional Loan · Updated July 2026
The CalHFA conventional loan: 3% down, and PMI that goes away.
CalHFA's conventional main mortgage asks for less down than FHA: 3% instead of 3.5%. MyHome can cover that 3% for you, up to $21,000 on a $700,000 townhome. Its mortgage insurance also has an exit door. For buyers with solid credit, that is often the smarter long-term math. Checking takes about 60 seconds, with no credit pull.
The CalHFA conventional loan in one sentence
A 30-year fixed conventional main mortgage with a 3% minimum down payment. MyHome can cover up to that full 3%. And it comes with private mortgage insurance you can remove once you reach 20% or more equity.
What is a CalHFA conventional loan?
CalHFA runs Fannie Mae HFA-style conventional programs. These are conventional mortgages with terms built for housing finance agencies. CalHFA-approved lenders deliver them. In plain English: you get a mainstream 30-year fixed loan. The down payment bar sits lower than standard conventional financing. And it plugs straight into CalHFA's assistance stack.
The eligibility frame matches the rest of the CalHFA lineup. You are a first-time buyer, meaning no home ownership in the last 3 years. You live in the home. You earn a homebuyer education certificate. And your income sits at or below the CalHFA county limit. For San Diego County in 2026, that is $259,000.
3% down, and MyHome can cover it
Pair MyHome with a CalHFA conventional main mortgage. It then gives up to 3% of the price or appraised value, whichever is less. It comes as a second loan with no monthly payment and no dollar cap. The conventional minimum down payment is also 3%. So the help and the requirement line up:
| Purchase price | Conventional minimum down (3%) | MyHome provides (3%) | Down payment out of pocket |
|---|---|---|---|
| $550,000 condo (El Cajon, National City) | $16,500 | $16,500 | $0 |
| $700,000 townhome (Chula Vista, Vista) | $21,000 | $21,000 | $0 |
| $900,000 single-family (San Diego) | $27,000 | $27,000 | $0 |
Closing costs remain, usually a few percent of the price. Help exists there too. CalPLUS adds ZIP. That is a 0% deferred loan of about 2 to 3% of the first loan amount. Per CalHFA Bulletin 2025-04, ZIP now pairs with MyHome. Seller credits can absorb much of the rest. The programs hub walks through the full stack with dollar math.
The PMI advantage: why this page exists
Every low-down-payment loan carries mortgage insurance. The question is whether you can ever stop paying it.
| CalHFA Conventional (PMI) | CalHFA FHA (MIP) | |
|---|---|---|
| Upfront premium | None | ~1.75% of loan amount, financed |
| Monthly premium | Priced by credit score. Cheaper with higher scores | Roughly flat pricing at any score |
| Can it be removed? | Yes, at 20%+ equity, per servicer requirements | Generally life of the loan at low down payments |
That third row is the one that compounds. In a rising market like San Diego, buyers can reach 20% equity. It comes from paydown plus price growth. Once PMI is removed, the conventional payment sheds a cost the FHA payment keeps. (Short of refinancing, which would also trigger MyHome repayment.) No promises on timing. Price growth is never a sure thing. But the option to remove insurance has real value. FHA does not offer that exit at low down payments.
The credit-score hinge
PMI is priced by credit score. So this whole comparison hinges on yours. At about 700 and up, conventional PMI usually beats FHA's insurance with room to spare. In the mid-600s, FHA's flat pricing often wins. This is exactly the side by side a CalHFA-approved lender should run for you. In writing, not hand-waving.
Conventional or FHA? The honest sorting
- Choose conventional if your credit is about 700 or higher and you want mortgage insurance with an exit. You also skip FHA's financed upfront premium.
- Choose FHA if your credit is in the mid-600s, you've had past credit events, or your monthly debts need FHA's flexibility. You also get up to 3.5% MyHome instead of 3%. That is a slightly bigger help layer.
- Either way, you must be under the income limit. You must also complete homebuyer education and buy through a CalHFA-approved lender.
- Undecided? Price both. The right answer is a comparison sheet, not a slogan. Start here.
Where San Diego buyers use it
The conventional stack shines in the county's condo and townhome band, about $500,000 to $800,000. Think Chula Vista, Oceanside, Vista, El Cajon and San Diego proper. There, a 3% MyHome layer can cover the full down payment. Strong-credit buyers keep their monthly insurance cost lean. Our first-time buyer guide maps the neighborhoods in detail.
CalHFA conventional loan FAQ
How much down payment does the CalHFA conventional loan require?
A minimum of 3% of the purchase price. MyHome assistance gives up to 3% when paired with a CalHFA conventional main mortgage. There is no dollar cap. So on most purchases the help covers the entire minimum down payment.
Can the PMI on a CalHFA conventional loan really be removed?
Yes. Private mortgage insurance on a conventional loan can be removed. That happens once you reach 20% or more equity, subject to your servicer's rules. That is the key difference from FHA. FHA mortgage insurance at low down payments generally lasts for the life of the loan.
Who should choose the CalHFA conventional loan over CalHFA FHA?
Generally buyers with stronger credit, about 700 and up. PMI is priced by credit score. Higher scores get cheaper monthly insurance, and it can be removed at 20% or more equity. Buyers in the mid-600s, or with past credit events, often find FHA the better fit. FHA has flat-priced insurance and a forgiving loan review.
Is there an income limit for the CalHFA conventional loan?
Yes. Your income must be at or below the CalHFA limit for your county. For 2026 that is $259,000 in San Diego County and $210,000 in Riverside County. Other counties vary each year.
Can I stack MyHome and ZIP with a CalHFA conventional loan?
MyHome pairs with the CalHFA conventional main mortgage at up to 3% of the price. The ZIP zero-interest closing-cost loan comes through CalPLUS main mortgages. Per CalHFA Bulletin 2025-04, ZIP must be used together with MyHome. A CalHFA-approved lender can price the combinations for your scenario.
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.
See the FHA-vs-conventional math for your file.
Start with one short quiz. About 60 seconds. No credit pull, no documents, no obligation. Then get a written side by side. It covers down payment, insurance cost, and what you'd bring to closing under each program.