Thank you for your CalHFA loan submission

This loan program is an amazing option for first time homebuyers and as wonderful as it is, it may feel a little daunting combining three loans into one transaction. Don’t worry! At Mountain West Financial, we help you take the guesswork out of underwriting.

The CalHFA loan has a few differences than your standard file. Use our checklist and helpful hints to make your transaction seamless. We are the #1 California wholesale lender in closing CalHFA loans and we are here to guide you to a successful on time closing.

Checklist and Helpful Hints

Click on the sections below for quick tips to ensure a quick and smooth closing

Ready to submit your file for underwriting? Don’t forget that in addition to AUS required documents, CalHFA requires the following:

  • All borrower’s income, not just qualifying income. This includes variable income and child support even if no continuance. CalHFA will not gross up non-taxable income. Compare your income to CalHFA income limits
  • LO must have MWF CalHFA certification
  • Written VOE with start date
  • Paystubs must be within 60 days of application
  • W2 (s) for most recent year
  • Tax returns for last three years
  • Homebuyer Education Certification
  • One year Home Warranty
  • Borrower must be a first-time homebuyer
  • Complete program details can be found at MWF Affordable Housing Center
  • Transcripts for all three years – must be obtained prior to going to CalHFA for approval.
  • Income, income, income. Check your income. Income will be calculated 2 ways: qualifying income for the loan and compliance income for CalHFA income limits. Variable income can be challenging; consult your BDM or PC for instructions. If your borrower works for a school, confirm school district employee’s pay structure (9, 10, 11, 12-month employees)
  • Income Worksheet
  • CalHFA Income Limits
  • CalHFA Sales Price Limits
  • Invoices for CD – don’t forget your homebuyer education invoice and home warranty invoice. Invoices are required for all fees even if being paid by the seller
  • Initial Disclosure Package – All TRID disclosures must be signed for all three loans.
  • CalHFA Disclosures
    • CalHFA Borrower Affidavit – All fields must be completed and signed. New form dated 7/2018 must be used.
    • Zip Disclosure – Only required if borrower is using a 3% or 4% Zip loan
    • CalHFA Tax Affidavit - If the borrower is not required to file taxes, the following are required:
      • Completed Tax Affidavit
      • Tax transcripts showing no record found for all years in which tax returns are not filed
      • VOR
    • Home warranty must cover:
      • Water heater
      • Air conditioning
      • Heating
      • Oven/Stove/Range
  • Transcript orders can take 5-6 business days, please make sure the 4506t is signed and uploaded as early as possible
  • We must have MWF UW loan approval on all 3 liens before submitting a lock request
  • All files must be locked prior to MWF obtaining CalHFA approval
  • Request your CD through BOLT when conditions are uploaded to underwriting
  • CD can be issued once MWF submits the file to CalHFA for approval
  • Conventional files require an MI cert which can add one day for approval
  • Check our MWF Turn Times for Underwriting, CalHFA and funding check in turn times

Here’s a list of items to send to your borrowers as they gather documentation for you

  • Make sure all loan numbers are on the insurance and CPL
  • Title insurance not required on 2nd and 3rd
  • Make sure your closing agent is aware that there are 3 loans when requesting estimated settlement statement
  • Remind your closing agent: all signed loan docs must be uploaded to their corresponding loan numbers. Signed docs uploaded to incorrect loan numbers will be deleted
  • CalHFA Loss Payee must be on insurance and CPL:
MWF Loss Payee for the 1st Lien:
Mountain West Financial, Inc.
Its Successors and/or Assigns
1209 Nevada Street, STE 200
Redlands, CA 92374
CALHFA Loss Payee for Subordinate Liens (MyHome, ZIP, STEAP):
California Housing Finance Agency
Its successor and/or assigns
Single Family Servicing – MS 980
500 Capitol Mall, Suite 400
Sacramento, CA 95814

We want a clean and quick closing for you and your CalHFA borrower and we are here to help. If you are not sure about a condition or information provided, please contact your BDM or AE! We are friendly, helpful, and waiting for your call.