How Do Cal FHA Loans Differ from the Standard?

It is important to note the difference between "Cal FHA" loans and "Cal HFA" loans. The FHA is the Federal Housing Administration. This is a national housing program that offers loan guarantees on loans from private lenders among other benefits. Cal HFA is the California Housing Finance Agency. This is a statewide agency focusing on affordable mortgages in California.

In terms of FHA loans, California is not entirely unique from other areas of the country. The FHA does set loan limits in each state, and California loan limits will differ from those in other states. The limits tend to be higher in California due to the expense of real estate there.

Cal HFA loans, on the other hand, tend to be focused on providing resources for first time homebuyers or those with unique needs. The agency also helps provide resources for innovative housing projects. For example, borrowers looking to invest in a transitional real estate market may find innovative loans available providing them incentive to do so. 

California borrowers may consider both the FHA and the CalHFA as resources when seeking a loan for their new mortgage. However, a borrower will ultimately have to make a choice between the two depending on the benefits each offers.