This is a question I recently received...

Tom, my wife and I would like to purchase a home in the Bay Area. I am most interested in CalHFA programs, however I have some questions. Is it true that you cannot sell the house for a profit if you have a CalHFA loan? Would this be a poor investment?


It appears you might have received some bad information about CalHFA loans. The California Housing Finance Agency (CalHFA) loan program was established to assist citizens of the State of California in purchasing homes due to our cost of housing. CalHFA provides below market financing, minimal down payment and favorable re-payment programs. In addition, CalFHA works with several county and inner-city sponsored programs to further help first-time home buyers. For more details on this topic check out the CalHFA website at

Regarding your specific question about re-selling a home with a CalHFA loan down the road, I’m not aware of any restrictions about selling a home for  profit. I am aware that some city/county sponsored home purchase programs are limited to teachers and public employees. In addition, some cities/county programs require that the home owner who benefited from a special program share a portion of their future realized gains as debt re-payment when they sell. The restrictions vary by program and term of loan so I cannot comment on specifics. For more information on specific debt re-payment obligations, call CalHFA before you sign your name on the loan documents.

P.S. Don't forget about the federal tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

About: Tom Stynes is the Managing Broker and Founder of StynesGroup Inc. and a Broker Associate with Keller Williams® Realty based out of Cupertino, California and deals with real estate in the Silicon Valley, Santa Clara county and surrounding areas. With over two decades of experience under his belt, he is a true professional. Tom’s number one goal is assuring his client’s needs are not just met, but exceeded. He heads StynesGroup, a team of professional REALTORS and brokers who work together to provide their clients the best, smoothest real estate transaction every time.