CalHFA Zero Interest Program (ZIP)

Take a $506,300 home in Sacramento, the city's median value in our data. CalPLUS FHA requires 3.5% down, or $17,721, and finances $488,580. MyHome, which every CalPLUS loan must include, covers up to 3.5% of the price, so the full $17,721 down payment comes from MyHome. ZIP then adds 3% of the first mortgage, or $14,657, on a 3% rate-sheet day, or $9,772 at 2%.

Estimated closing costs in Sacramento run $10,000 to $15,000. At 3%, ZIP's $14,657 covers nearly the entire high end, leaving at most $343 plus prepaid insurance and tax reserves. At 2%, the buyer would need $228 to $5,228. Any ZIP dollars not spent on closing costs go to ZIP principal.

A Sacramento buyer at or below 80% of area median income could also use FHLBank San Francisco's WISH grant through a member lender. WISH matches the buyer's savings 4 to 1, so $1,500 saved draws $6,000 for prepaids and reserves. Combined, MyHome, ZIP and WISH would put $38,378 toward this purchase.

ZIP is designed to be stacked and cannot be used alone. CalPLUS FHA and CalPLUS Conventional require both MyHome, which pays up to 3.5% of the price on FHA or 3% on conventional, and ZIP at 2% or 3% of the first mortgage. Behind those, CalHFA allows FHA-approved seconds or Fannie Mae Community Seconds such as city loans, and FHLBank San Francisco's WISH grant of up to $32,837 in 2026 for buyers at or below 80% of area median income.

ZIP cannot be paired with MyAccess, which belongs to the separate CalPLUS Access loan, or with California Dream For All, which uses its own conventional first mortgage. It cannot pay the down payment or debts, and leftover ZIP funds reduce ZIP principal. Combined loan-to-value is capped at 105% on CalPLUS FHA. Buyers can reach CalHFA at 877-922-5432; lenders use Single Family Lending at 916-326-8033.

Seller concessions of up to 6% of the price on an FHA purchase can cover the prepaid taxes, insurance and reserves that ZIP leaves open. Some buyers also layer a Mortgage Credit Certificate where a county issues one, which CalHFA permits for a yearly federal tax credit but does not count as income when qualifying for the loan.

ZIP's strongest advantage is cost: it charges 0% interest for up to 30 years, so a $14,657 ZIP loan is still $14,657 when the buyer sells. Paired with MyHome's 3.5%, it lets an FHA buyer cover the down payment and most closing costs, which together reach 6.5% of the price on a CalPLUS FHA loan. The county income limits are high, from $192,000 to $325,000, and the lender's processing fee on ZIP is capped at 50 dollars, the lowest of any CalHFA junior loan.

The biggest drawback is the CalPLUS first mortgage, which carries a slightly higher rate than standard CalHFA FHA for all 30 years unless refinanced, and refinancing makes ZIP and MyHome due. ZIP cannot pay any of the down payment, and its 2% or 3% size depends on the rate sheet the day you lock. Buyers who need help with the down payment itself should compare CalPLUS Access with MyAccess, or the 20% California Dream For All loan when its lottery opens.