CalHFA has helped hundreds of thousands of Californians buy their first home but it’s also one of the most misunderstood programs out there. Buyers in Roseville often rule themselves out, assume the worst about the process, or pass on CalHFA entirely based on something they heard secondhand that simply isn’t true.
Here are the most common CalHFA myths we hear from Roseville buyers, and what’s actually true.
Myth #1: CalHFA Is Only for Low-Income Buyers
This is probably the biggest myth out there, and it stops a lot of qualified buyers from even looking into the program. In reality, CalHFA income limits are set fairly high in most California counties — and they vary based on household size and location.
For Placer County, the income limits are often higher than buyers expect, especially for moderate dual-income households. Many Roseville buyers who assume they “make too much” for CalHFA are actually well within the limits. The only way to know for sure is to check your specific number with a lender rather than guessing.
Myth #2: CalHFA Loans Take Much Longer to Close
A lot of buyers — and even some real estate agents — believe CalHFA loans drag out the timeline compared to a conventional loan. In practice, when you work with a lender who handles CalHFA regularly, the timeline is comparable to any other loan type, typically 21 to 30 days from accepted offer to closing.
Where this myth comes from is real, but outdated: it usually stems from lenders who don’t work with CalHFA often and aren’t familiar with the extra steps, like reserving the loan through CalHFA’s system. An experienced CalHFA lender has this process down and it doesn’t meaningfully slow anything down.
Myth #3: You Can’t Compete With CalHFA in a Multiple-Offer Situation
In a market like Roseville where homes can get multiple offers, buyers sometimes assume a CalHFA-backed offer will automatically lose to a conventional buyer. That’s not necessarily true.
What actually determines whether your offer is competitive is the strength of your pre-approval and how confidently your lender can communicate with the listing agent — not the loan type itself. A CalHFA buyer with a fully verified pre-approval and a responsive local lender can absolutely compete with — and win against — conventional offers. The loan program matters less than the preparation behind it.
Myth #4: CalHFA Down Payment Assistance Is Free Money You Never Pay Back
This one trips up a lot of buyers, and it’s worth being precise about because the details actually matter.
Programs like MyHome Assistance are deferred loans, not grants. You don’t make monthly payments on them, but the amount is repaid when you sell the home, refinance, or pay off your first mortgage. Dream For All works differently — it’s a shared appreciation loan, meaning you repay the original assistance amount plus a percentage of the home’s appreciation when you sell or refinance.
Neither program is “free” in the sense of never being repaid, but neither requires monthly payments either. Understanding which type of assistance you’re using matters for long-term planning, so it’s worth having your lender walk through the specific repayment terms for whichever program you qualify for.
Myth #5: You Have to Be a First-Time Buyer in the Literal Sense
Many buyers assume “first-time buyer” means they can never have owned a home, period. CalHFA’s actual definition is more flexible than that — it generally means you haven’t owned a home in the past three years. If you owned a home previously but have been renting for the last several years, you likely still qualify as a first-time buyer under CalHFA’s definition.
Myth #6: You Need Perfect Credit to Qualify
CalHFA’s minimum credit score requirement for most programs is 660 — solid, but far from “perfect.” Some related programs, like CalHFA VA, accept scores as low as 620. If your score isn’t quite there yet, a good lender won’t just turn you away — they’ll often give you a specific plan to get your score where it needs to be within a few months.
Myth #7: CalHFA Loans Are Only FHA Loans
Some buyers think CalHFA only offers government-backed FHA financing. In reality, CalHFA offers both FHA and conventional loan options, including HFA Preferred conventional loans that avoid FHA’s lifetime mortgage insurance requirement. Which option makes sense depends on your credit profile and financial goals — your lender can walk through both.
Myth #8: Any Mortgage Lender Can Offer CalHFA Loans
This isn’t true, and it’s an important one to know before you start shopping for a lender. CalHFA doesn’t lend directly to buyers — it works exclusively through a network of CalHFA-approved lenders. Not every mortgage lender in Roseville has this approval, and even among those who do, day-to-day experience with the program varies. If you’re planning to use CalHFA, confirm upfront that your lender is actually approved and handles these loans regularly.
Myth #9: Dream For All Is the Only CalHFA Program Worth Knowing About
Dream For All gets a lot of attention because of its large assistance amounts, but it operates on a lottery system with narrow application windows — sometimes closing within days of opening. Many buyers don’t realize that MyHome Assistance is available year-round with no lottery and no waiting for a funding window. For buyers who want a more predictable path, MyHome is often the more practical option, even though it gets less press than Dream For All.
Myth #10: CalHFA Buyers Can’t Use Closing Cost Assistance Too
Some buyers assume they have to choose between down payment help and closing cost help. In reality, CalHFA programs can often be stacked — for example, combining a CalPLUS first mortgage with the Zero Interest Program (ZIP) to cover closing costs, alongside MyHome for the down payment. When structured correctly, this combination can significantly reduce how much cash a buyer needs at closing.
Why These Myths Matter
Believing even one of these myths can lead a qualified Roseville buyer to rule out a program that could save them tens of thousands of dollars — or worse, to walk away from a competitive offer they actually could have won. The reality is that CalHFA is a well-established, properly funded state program used by hundreds of thousands of California homeowners, and most of the hesitation around it comes from outdated information or working with a lender who isn’t experienced with the program.
Ready to Find Out What’s Actually True for Your Situation?
The best way to cut through the myths is to talk to a lender who works with CalHFA regularly and can give you real numbers based on your specific situation — not assumptions based on what you’ve heard.
The JJ Mack Team is a CalHFA-approved Roseville mortgage lender serving Roseville and Placer County. Reach out for a free consultation, and we’ll tell you plainly whether CalHFA makes sense for you — and exactly what it would look like if it does.
Contact us or fill out the form below to learn more.