The California Housing Finance Agency launched a new fixed-rate, 30-year mortgage to help low- and moderate-income California families purchase their first home.

The Cal HFA loan (CalHFA FHA) is a special FHA loan that allows first time home buyers in Redding and Shasta County, California to purchase a home with up to a 99.5% loan to value ratio (LTV). To making purchasing a home more affordable, CALHFA has allowed Redding home buyers to combine both the closing costs and the down payment to help buyers achieve the dream of home ownership.

Cal HFA mortgage loans are made in partnership with the Federal Housing Administration and provide access to Redding (Shasta County) home mortgage loans with below-market interest rates.

Steven Spears, executive director of CalHFA, said California real estate prices are attractive for first-time homebuyers but many cannot meet the loan requirements of conventional lenders.

Cal HFA loans are for first-time home buyers, defined under federal law as not having owned and occupied a home for the past three years. In addition to first-time homebuyers, some qualified veterans may also be eligible.