If you bought your Roseville home using a CalHFA loan, you may be wondering whether refinancing is an option — to lower your rate, reduce your monthly payment, or access equity. The short answer is yes, CalHFA borrowers can refinance. But how it works, and what it costs, depends heavily on which CalHFA programs you used when you bought.
This guide walks Roseville homeowners through CalHFA’s refinance programs, what happens to your assistance loans when you refinance, and how to decide if refinancing makes sense for your situation.
CalHFA Now Offers Three Refinance Programs
As of August 2025, CalHFA launched dedicated refinance programs specifically for existing CalHFA borrowers. These programs are available through CalHFA-approved lenders and are designed for low-to-moderate income homeowners looking to lower their monthly payments. The three programs are:
CalHFA FHA Refinance
Available for borrowers with an existing CalHFA FHA first mortgage. Offers rate-and-term, simple, and streamline refinance options. Accepts credit scores down to 640 with a DTI up to 50%.
CalHFA Conventional Refinance
Available for borrowers with an existing CalHFA conventional first mortgage. Uses Fannie Mae’s HFA Preferred framework with limited cash-out options. Accepts credit scores down to 680 with a DTI up to 50%.
CalHFA Dream For All Refinance
Specifically for borrowers who used the Dream For All Shared Appreciation Loan. This program allows a limited cash-out refinance of the first mortgage with resubordination of the Dream For All loan — meaning you don’t have to pay off the Dream For All assistance to refinance. Accepts credit scores down to 680 with a DTI up to 50%.
The Critical Detail: What Happens to Your Assistance Loans
This is the part that catches most CalHFA borrowers off guard, so it’s worth being very clear.
If you used MyHome Assistance or ZIP:
When you refinance your CalHFA first mortgage using the FHA or Conventional refinance programs, all subordinate loans — including MyHome and ZIP — must be paid off in full at the time of refinancing. CalHFA does not allow these assistance loans to remain in place when you refinance your first mortgage through these programs.
This means your refinance transaction needs to be large enough or your equity strong enough to cover the payoff of those assistance loans at closing. For most Roseville borrowers who have been in their homes for a few years and benefited from appreciation, this is manageable — but it needs to be factored into your refinance math.
If you used Dream For All:
This is where the rules are different and more favorable. CalHFA allows a one-time resubordination of the Dream For All Shared Appreciation Loan when you refinance using the Dream For All Refinance program. Resubordination means the Dream For All loan stays in place behind your new first mortgage — you don’t have to pay it off to refinance.
However, this is a one-time allowance for the life of the loan. Once you use it, it’s gone. The resubordination also comes with specific requirements — covered in detail below.
Dream For All Resubordination: The Requirements
If you have a Dream For All loan and want to refinance without paying it off, you must meet all of the following criteria:
- The refinance must be submitted by a CalHFA-approved lender
- Only one resubordination is allowed per loan for its entire life
- The refinanced loan must follow Fannie Mae guidelines for limited cash-out refinances
- The new loan must have a fixed interest rate
- The maximum combined loan-to-value (CLTV) cannot exceed 105%
- The property must be owner-occupied by at least one borrower on the deed
- The maturity date of the loan being refinanced must be at least ten years in the future
- You must have made at least 12 consecutive on-time monthly payments on the first mortgage
There is also a non-refundable resubordination fee of $400.
If you’ve already used your one-time resubordination and want to refinance again in the future, the Dream For All loan would need to be paid off at that point.
Does CalHFA Refinancing Have Income Limits?
Yes — CalHFA’s refinance programs include income limits. Your qualifying income cannot exceed CalHFA’s published limits for your county. For Placer County, these limits are updated periodically, so confirm the current figures with your lender before starting the process.
This is one meaningful distinction from refinancing through a conventional lender outside of CalHFA — the income limits don’t apply if you refinance with a non-CalHFA conventional product and pay off your assistance loans in the process.
Should You Refinance Through CalHFA or Outside of It?
This is the most important strategic question for Roseville CalHFA borrowers thinking about refinancing. There are two paths:
Path 1: Refinance through a CalHFA program
You keep the CalHFA framework in place (or resubordinate Dream For All if applicable). Income limits apply. Available only through CalHFA-approved lenders.
Path 2: Refinance through a conventional or FHA product outside of CalHFA
You pay off all CalHFA assistance loans at closing using your equity. No income limits. Available through any approved lender.
The right choice depends on several factors. If you have significant equity and your assistance loans are small relative to that equity, paying them off at refinance and moving to a standard product may be cleaner and give you more options. If you have a Dream For All loan with a large balance or your equity hasn’t grown enough to comfortably absorb the payoff, the CalHFA refinance path with resubordination may be the better move.
When Does Refinancing a CalHFA Loan Make Sense?
Refinancing makes sense when the long-term savings outweigh the upfront costs — including any assistance loan payoffs. A few scenarios where refinancing is worth a close look:
Rates have dropped significantly since you bought. If current rates are meaningfully lower than your original rate, the monthly savings can justify the refinance costs. Calculate your break-even point — how many months it takes for monthly savings to cover closing costs — before committing.
You want to remove FHA mortgage insurance. If you used a CalHFA FHA loan and have built up enough equity, refinancing to a conventional product can eliminate FHA’s lifetime mortgage insurance requirement, potentially saving hundreds per month.
Your credit has improved substantially. If your credit score has increased significantly since you bought, refinancing may unlock a meaningfully lower rate than you qualified for originally.
You need to remove a borrower from the loan. Divorce or other life changes sometimes require removing a co-borrower from the mortgage. A refinance is typically the mechanism for doing this.
When Refinancing Probably Doesn’t Make Sense
When your assistance loan payoff would wipe out your equity. If you don’t have enough equity to comfortably cover the payoff of MyHome and closing costs, refinancing may leave you with very little cushion or require you to bring cash to the table.
When you’re planning to sell in the near term. The upfront cost of refinancing takes time to recoup through monthly savings. If you’re planning to sell within a few years, refinancing may not pay off.
When the rate difference is too small. A general rule of thumb is that a rate reduction of at least 0.75% to 1% is needed to justify refinancing costs. Below that, the math often doesn’t work in your favor over a reasonable timeframe.
Common Questions From Roseville CalHFA Borrowers
Can I do a cash-out refinance on a CalHFA loan?
The CalHFA refinance programs are designed as rate-and-term or limited cash-out options — not full cash-out refinances. If you need to access significant equity, refinancing outside of CalHFA and paying off your assistance loans may provide more flexibility.
Will refinancing affect my MCC?
Yes — if you have a Mortgage Credit Certificate, refinancing your first mortgage typically terminates the MCC. Some programs offer a Reissued MCC (RMCC) that allows you to maintain the benefit after refinancing, but it requires a separate application. Ask your lender about this before refinancing if you have an MCC in place.
Can I refinance if I’m behind on my payments?
Most refinance programs require a clean payment history — typically no late payments in the past 12 months. If you’re experiencing financial hardship, contact CalHFA and your loan servicer directly to discuss other options before exploring refinancing.
Do I have to use a CalHFA-approved lender to refinance?
Only if you’re refinancing using a CalHFA refinance program. If you’re paying off your assistance loans and refinancing into a standard product, you can use any qualified lender.
How long does a CalHFA refinance take?
Timelines are comparable to any other refinance — typically 30 to 45 days from application to closing with an experienced lender and responsive borrower documentation.
Ready to Look at Your Refinance Options?
Whether you’re thinking about refinancing to lower your rate, remove mortgage insurance, or just want to understand your options as a CalHFA borrower, the JJ Mack Team can walk through the numbers with you. We’re a CalHFA-approved lender in Roseville with direct experience in CalHFA refinance programs.
Reach out for a free consultation with a local Roseville mortgage lender — we’ll pull up your current loan structure, run the refinance math for your specific situation, and give you an honest assessment of whether refinancing makes sense right now.
Contact us or fill out the form below to learn more.