CalPLUS With ZIP: When It Makes Sense

Key takeaways

• CalPLUS is a first mortgage from CalHFA, the California Housing Finance Agency. Its fixed rate is slightly higher than the standard CalHFA loan. CalHFA pairs that rate with ZIP's closing cost help.
• CalPLUS FHA and CalPLUS Conventional must use the Zero Interest Program (ZIP). ZIP covers closing costs and prepaid items only. It does not cover a down payment or pay off debt.
• ZIP sits in third position, behind the first mortgage and MyHome Assistance. Payments on it are deferred for the life of the CalPLUS first mortgage. It comes due at the earliest of a transfer of title, a payoff or refinance of the first mortgage, or a recorded Notice of Default (unless rescinded).
• If ZIP funds are left over after your closing costs and prepaid items are paid, the rest goes to reduce your loan principal.
• Whether CalPLUS makes sense depends on the cash you have, how long you plan to keep the loan, and the terms. We lay both options side by side before you choose.

The numbers that matter

Why buyers hear about CalPLUS

Many buyers first hear the word CalPLUS in a disappointing moment. They registered for CalHFA's Dream For All program, hoping to be chosen. They were not. In the 2026 round, CalHFA picked buyers by random drawing, not by who signed up first. The portal for that round closed on March 16, 2026, and CalHFA's page says no new applications can be submitted. Our guide, Dream For All Is Closed: What Are My Options in 2026?, has the details.

CalHFA says that applicants who are not selected can still work with a CalHFA-approved lender and consider MyHome Assistance or CalPLUS with ZIP. So CalPLUS is not a consolation prize that someone made up. It is a regular CalHFA option, and it is on the agency's own list of what to look at next.

Closing costs are the reason it matters. Buyers often plan for the down payment and then learn that the fees to finish the sale are a separate pile of cash. Those fees can include charges for the loan, the appraisal, title and escrow. On top of those come prepaid items, which are costs you pay ahead of time at closing. CalPLUS with ZIP is aimed at that second pile.

This page explains what CalPLUS and ZIP are, how they fit with MyHome, and when the trade may make sense. We keep the language plain and define each mortgage word the first time it appears. We can't say whether CalPLUS is right for you before we see your numbers. What we can do is help you think it through before you call.

What is CalPLUS with ZIP?

CalPLUS with ZIP is two things working together. CalPLUS is the first mortgage. ZIP is the closing cost help that goes with it.

CalPLUS is a CalHFA first mortgage. A first mortgage is your main home loan. CalPLUS has a fixed rate, which means the rate stays the same for the life of the loan. CalHFA sets the CalPLUS rate slightly higher than its standard loan. We do not quote rates on this page. Rates change, and a rate means little until it is shown with the full terms for your file.

ZIP stands for Zero Interest Program. That is the name of the program. We use the name because CalHFA does, but please do not read more into it. How ZIP is repaid, and what that means for you, comes from CalHFA's loan handbook, not from the name. We give you the full terms for your file in writing.

CalPLUS comes in more than one flavor. CalHFA's current line-up is:

• CalPLUS FHA, built on an FHA loan (a loan insured by the Federal Housing Administration), used with ZIP.
• CalPLUS Access FHA, which is used with a CalHFA program called MyAccess. MyAccess must also be combined with MyHome.
• CalPLUS Conventional, built on a conventional loan (a loan not backed by a government agency), used with ZIP.
• CalPLUS Access Conventional.

There is no CalPLUS VA and no CalPLUS USDA. For CalPLUS FHA and CalPLUS Conventional, ZIP is required. You cannot choose either one and skip ZIP. The rest of this page is about those two.

People often get three things wrong.

It is not a down payment program. ZIP covers closing costs only. It cannot be used for the down payment or to pay off debt. If you need help with the down payment, that is where MyHome Assistance comes in, covered below.

It is not free. The closing cost help comes with a first-mortgage rate that is slightly higher than the standard CalHFA loan, and ZIP comes due at the events described below. Help now can mean a cost later.

It is not for everyone. CalPLUS follows CalHFA's rules. ZIP requires the borrower to be a first-time homebuyer. Income limits, homebuyer education and occupancy rules apply too. Funds are limited and subject to availability.

How does CalPLUS with ZIP work?

What ZIP pays for

ZIP pays for closing costs and prepaid items. You will hear both terms.

Closing costs are the fees to finish the sale and set up the loan. They include things like the lender's processing charge, the appraisal, title insurance and escrow services.

Prepaid items are costs you pay in advance at closing. Examples include the first part of your homeowners insurance and some property taxes, plus interest that builds up between your closing date and your first regular payment. Your loan estimate lists them, and we walk through each line with you. (The CFPB explains the loan estimate at consumerfinance.gov.)

ZIP is for closing costs only. It is not for the down payment, and it cannot pay off debt.

What happens to leftover ZIP funds

Sometimes the ZIP funds are more than your closing costs and prepaid items turn out to be. The leftover amount does not go into your pocket. It goes to principal reduction. Principal is the amount you borrowed, so paying it down means you owe less on the loan from day one.

Where ZIP sits in the loan order, and when it is due

Your CalPLUS first mortgage is the main loan. MyHome Assistance, if you use it, is a second loan behind the first one. ZIP sits in third position, behind MyHome. So MyHome and ZIP can be on the same CalPLUS FHA loan.

Payments on ZIP are deferred for the life of the CalPLUS first mortgage. "Deferred" means put off. ZIP comes due at the earliest of these events: a transfer of title, a payoff or refinance of the first mortgage, or a recorded Notice of Default (unless it is rescinded). A Notice of Default is a legal notice that a loan is in serious default.

Refinancing matters here. CalHFA now requires all subordinate loans to be paid in full if the first mortgage is refinanced. "Subordinate" means behind the first mortgage. If you may want to refinance someday, ask us how that would work before you choose.

The rules to know

CalHFA's published rules for first-time buyer status, homebuyer education, occupancy and income limits are laid out for MyHome in CalHFA MyHome Assistance, explained. They apply when MyHome is on your loan, and they are the closest published guide for CalPLUS buyers.

The San Bernardino County income limit is $210,000 for all CalHFA programs except Dream For All, as of June 30, 2026. CalHFA publishes one figure per county. CalHFA updates these limits, so check the date. Ask us how income is counted for your household. Credit and debt-to-income rules follow the first mortgage. Debt-to-income is the share of your monthly income that goes to debts, including the new housing payment. CalHFA publishes those rules in matrices, which are tables by loan type, and we go over yours on the first call.

CalHFA programs are only available through a CalHFA-approved lender. You can search CalHFA's lender list at https://www.calhfa.ca.gov/apps/approvedlenders. New American Funding is on that list, and our office at 8463 Haven Avenue appears in it (checked October 30, 2026).

When does CalPLUS with ZIP make sense?

With CalPLUS, you accept a slightly higher fixed rate on your first mortgage. CalHFA pairs that rate with ZIP's closing cost help. So you need less cash on the day of closing. A higher rate means more interest the longer you keep the loan.

Whether that is a good trade depends on a few things that only you can weigh.

How much cash you have right now. If closing costs are the hurdle between you and the keys, the trade can be worth looking at. If you already have the cash, the slightly higher rate may cost you more than it helps.

How long you expect to keep the loan. The rate difference adds up the longer you keep the loan. If you expect to move or refinance sooner, the extra cost has less time to add up. But a sale or refinance is also when ZIP comes due. We cannot predict your future, but we can show you how each choice behaves under each plan.

What ZIP asks of you later. Payments are deferred, and ZIP comes due at a transfer of title, a payoff or refinance of the first mortgage, or a recorded Notice of Default (unless rescinded). Ask us for the terms on your file in writing.

What your other options look like. The standard CalHFA loan with MyHome may be one. A seller credit negotiated in your offer may be another. GSFA Platinum is a different program, covered in GSFA Platinum: how it works and what to compare. We put the options on paper next to each other.

Here is the comparison without numbers, because your numbers decide it.

Sources: CalHFA programs page, https://www.calhfa.ca.gov/homebuyer/programs/index.htm, and CalHFA government loan handbook, https://www.calhfa.ca.gov/homeownership/programs/loans-gov.pdf.

There is no single right answer. If the standard loan fits you better, we will say so.

How it stacks with MyHome

MyHome Assistance is CalHFA's down payment and closing cost help for first-time buyers. It is a deferred-payment, subordinate loan. Deferred-payment means payments are put off until one of the repayment events below. It must be paired with a CalHFA first mortgage. CalPLUS FHA and CalPLUS Conventional are on the list of first mortgages MyHome can pair with, along with CalHFA FHA, CalHFA Conventional, CalHFA USDA and CalHFA VA.

MyHome is repaid at the earliest of these events: transfer of title, sale, payoff or refinance of the first loan, or a recorded Notice of Default (unless it is rescinded). MyHome can help with the down payment, closing costs, or both, within CalHFA's limits. Those limits are set as a share of the price or value of the home and differ by first mortgage type. We do not list them here. We give you the current ones on the first call. Every borrower on a MyHome loan must be a first-time buyer and must live in the home.

Put together, a buyer who qualifies could use a CalPLUS first mortgage as the main loan, MyHome behind it for down payment and/or closing costs, and ZIP in third position for closing costs and prepaid items.

Sources: CalHFA MyHome program guide (last revised October 19, 2026), https://www.calhfa.ca.gov/homeownership/programs/myhome.pdf, and CalHFA government loan handbook, https://www.calhfa.ca.gov/homeownership/programs/loans-gov.pdf.

One more rule: CalHFA also limits how much can be borrowed in total against the home's value across all loans. When you stack several loans, each piece can look fine alone while the combination hits a ceiling. We check the total on your file before you make an offer.

What we do not know yet

We would rather tell you what we cannot confirm than guess.

• Whether Dream For All has a new round. A May 20, 2026 note on CalHFA's Dream For All page says "the next round of DFA vouchers have been released" and tells applicants who already applied to check the portal. The same page says the portal closed March 16 and no new applications can be submitted. We read that as vouchers going to people already in the pool, not a new application round. Check CalHFA directly before you plan around it.
• Next year's limits. Income limits and loan limits are updated over time. We do not know what 2027 will bring, and we update this page when CalHFA publishes them.

How to decide

We describe situations, not types of people. Anyone who meets the program rules can ask about it.

It may be worth a look if you have most of what you need for the down payment but not the closing costs, since ZIP is aimed at exactly that gap. It may also be worth a look if you were not selected in the Dream For All drawing and CalHFA has pointed you toward CalPLUS, or if you plan to stay in the home a long time and want to see what the higher rate costs over those years. It may not fit if you already have enough cash for closing costs, because the higher rate may then cost more than the help is worth. It may not fit if you are not a first-time buyer under CalHFA's definition, which ZIP requires. GSFA Platinum, for example, does not require that you be a first-time buyer. See GSFA Platinum. CalPLUS is built on FHA and conventional loans only, so if you plan a VA or USDA loan, CalHFA has its own versions of those first mortgages without CalPLUS.

Here is a made-up example, with no numbers, to show the thinking. It is not a real program offer, home or person.

Suppose a buyer named "Dana" (a made-up name) has saved enough for the down payment but is short on the cash needed to close. Dana's lender puts two paths on paper side by side. On the first, Dana takes the standard CalHFA loan with a slightly lower rate and finds the closing cost cash another way, perhaps by saving longer or asking for a seller credit. On the second, Dana takes CalPLUS with a slightly higher rate, and ZIP covers the closing costs and prepaid items. Any ZIP money left after closing reduces Dana's principal. If waiting costs Dana little, the standard loan may win. If waiting costs a lot, CalPLUS may win. Neither path is wrong. The wrong move is choosing without seeing both.

Step by step: how to look at CalPLUS with ZIP

1. Check your starting point. Write down your income, your savings and your monthly debts. A rough picture is enough for a first call.
2. Talk to a CalHFA-approved lender. CalHFA programs are only available through one. See how to choose a CalHFA-approved lender.
3. Ask for both options on paper. Ask for CalPLUS with ZIP and the standard CalHFA loan, side by side. Look at the cash needed to close and the long-term picture, not only the monthly picture.
4. Take the homebuyer education course. It is required for one occupying first-time borrower per loan. The eHome online course takes about eight hours. Classes through NeighborWorks or a HUD-approved counseling agency are another way.
5. Get pre-approved with the program in mind. Pre-approval means a lender has reviewed your documents and says how much you may be able to borrow. It is not a promise to lend.
6. Look at homes in your range. CalHFA has had no sales price limit since 2020, but loan limits still apply, and the home must meet the first mortgage requirements, including the appraisal.
7. Make an offer, then reserve your funds. Your lender reserves through CalHFA's Mortgage Access System, and CalHFA allows reservations after you and the seller have signed the purchase contract. Funds are limited and subject to availability.
8. Finish the paperwork and close. Keep every page of the assistance paperwork. You will need it when you sell or refinance.

Questions to ask any lender about CalPLUS

You can bring this list to any lender, including us.

1. What is the rate difference between CalPLUS and the standard CalHFA loan on my file? Ask to see them side by side, on paper, with the date.
2. When does ZIP come due? Ask for the events that trigger repayment, in writing.
3. What happens if I refinance or sell in the first few years? CalHFA requires its subordinate loans to be paid in full on a refinance.
4. How do ZIP and MyHome work together on my loan? Ask which one covers which cost.
5. What happens to ZIP money left over after closing? It goes to principal reduction. Ask to see where it appears in the paperwork.
6. What are the income limits today, and are funds open today? Ask for the date checked.
7. What homebuyer education do I need, and by when?
8. What documents do you need, and by when? Late paperwork is a common cause of delay.

If a lender cannot answer these plainly, keep asking.

Common mistakes

Assuming ZIP covers the down payment

It does not. ZIP is for closing costs and prepaid items only. MyHome is where down payment help comes from.

Assuming ZIP is a grant

It is not a gift. Payments are deferred, and the amount comes due at a transfer of title, a payoff or refinance of the first mortgage, or a recorded Notice of Default (unless rescinded). Ask for the terms in writing.

Choosing by the closing cost help alone

A benefit today can sit on top of a cost that adds up over years. Compare the whole loan, not only the help.

Counting on Dream For All

It is closed to new applications. Do not plan a purchase around it. Look at what is open now.

What we do differently

Our team prepares each step of your file, and Colleen reviews the files that may be a bit more difficult, to help avoid surprises.

• Colleen worked her way up to underwriter. An underwriter is the person who decides whether a loan meets the rules. She looks at your file the way the underwriter will.
• We explain the catch of each program we discuss before you apply.
• We compare the whole loan, not only the assistance.
• We tell you when it is not the right time.

You can read more about how we work in How we work at The Brandon Drew Group.

Conclusion

CalPLUS with ZIP is a trade. You accept a slightly higher fixed rate on a CalHFA first mortgage, and in return ZIP helps with your closing costs and prepaid items. It can stack with MyHome, which may help with the down payment, and ZIP sits behind it in third position. If ZIP money is left over, it reduces your loan principal. Whether the trade is a good one depends on your cash, your plans and the terms, including when ZIP comes due, which we confirm with you in writing.

You do not have to work through this alone. Bring your questions, and we will put the options side by side. We will also tell you if the answer is "not yet."

How it compares

The programs buyers ask us about most, side by side.

From our fact library (CalPLUS with ZIP: calhfa.ca.gov; CalHFA MyHome Assistance: calhfa.ca.gov; GSFA Platinum: gsfahome.org). Checked Oct 28, 2026.

Frequently asked questions

Related guides

• Down payment assistance in Rancho Cucamonga
• CalHFA MyHome Assistance, explained
• GSFA Platinum: how it works and what to compare
• Dream For All Is Closed: What Are My Options in 2026?
• How to choose a CalHFA-approved lender

Sources

Checked October 28, 2026. Program details change, so check each page directly.

• CalHFA, programs overview (CalPLUS line-up and ZIP): https://www.calhfa.ca.gov/homebuyer/programs/index.htm
• CalHFA, government loan handbook (ZIP terms): https://www.calhfa.ca.gov/homeownership/programs/loans-gov.pdf
• CalHFA, MyHome Assistance program guide (last revised October 19, 2026): https://www.calhfa.ca.gov/homeownership/programs/myhome.pdf
• CalHFA, MyHome page (homebuyer education): https://cloud.calhfa.ca.gov/homebuyer/programs/myhome.htm
• CalHFA, refinance rules for subordinate loans: https://www.calhfa.ca.gov/homeownership/programs/refi.htm
• CalHFA, reservations (Mortgage Access System): https://www.calhfa.ca.gov/homeownership/rates/index.htm
• CalHFA, approved lender search: https://www.calhfa.ca.gov/apps/approvedlenders
• CalHFA, income limits: https://cloud.calhfa.ca.gov/homeownership/limits/income/income.pdf
• CalHFA, loan and sales price limits: https://calhfa.ca.gov/homeownership/limits/index.htm
• CalHFA, Dream For All: https://calhfa.ca.gov/dream/
• CalHFA, Dream For All 2026 press release: https://calhfa.ca.gov/about/press/press-releases/2026/pr2026-01-16.htm
• CalHFA, credit and debt-to-income matrices: https://www.calhfa.ca.gov/homeownership/materials/files/tool-matrix-gov.pdf and https://www.calhfa.ca.gov/homeownership/materials/files/tool-matrix-conventional.pdf
• Consumer Financial Protection Bureau, Loan Estimate: https://www.consumerfinance.gov/owning-a-home/loan-estimate/
• Consumer Financial Protection Bureau, loan options and pre-approval: https://www.consumerfinance.gov/owning-a-home/loan-options/
• Golden State Finance Authority, GSFA Platinum: https://gsfahome.org/programs/dpa/platinum.shtml
• Golden State Finance Authority, participating lenders: https://gsfahome.org/programs/dpa/lenders.aspx
• Golden State Finance Authority, about GSFA: https://gsfahome.org/about/about.shtml