# State and Government loan CalHFA and DALP

**URL:** <https://community.propertyradar.com/t/state-and-government-loan-calhfa-and-dalp/5212>\
**Category:** Foreclosure Investing\
**Created:** [April 29, 2026, 6:54am UTC](https://community.propertyradar.com/t/state-and-government-loan-calhfa-and-dalp/5212 "2026-04-29T06:54:35Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![cluo](https://avatars.discourse-cdn.com/v4/letter/c/ee7513/32.png) [@cluo](https://community.propertyradar.com/u/cluo)\
**Post date:** [April 29, 2026, 6:54am UTC](https://community.propertyradar.com/t/state-and-government-loan-calhfa-and-dalp/5212/1 "2026-04-29T06:54:35Z")

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CalHFA: California Homebuyer’s downpayment program

DALP: Downpayment assistant loan program

Can house with CalHFA or DALP be foreclosed?

A realtor is selling a house with CalHFA and DALP that is recently foreclosed. He said this kind of house can’t be foreclosed. ChatGPT said it can.

Do I need to pay CalFA or DALP loans if the foreclosed price can’t cover the first loan?

How do I know if this house (purchased by loan income family) is a below market rate house?

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**Author:** ![cluo](https://avatars.discourse-cdn.com/v4/letter/c/ee7513/32.png) [@cluo](https://community.propertyradar.com/u/cluo)\
**Post date:** [April 29, 2026, 5:10pm UTC](https://community.propertyradar.com/t/state-and-government-loan-calhfa-and-dalp/5212/2 "2026-04-29T17:10:40Z")

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**Author:** ![Sean\_OToole](https://yyz1.discourse-cdn.com/flex029/user_avatar/community.propertyradar.com/sean_otoole/32/4_2.png) [@Sean\_OToole](https://community.propertyradar.com/u/Sean_OToole)\
**Post date:** [April 29, 2026, 10:17pm UTC](https://community.propertyradar.com/t/state-and-government-loan-calhfa-and-dalp/5212/3 "2026-04-29T22:17:55Z")

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Hi Cluo,

Yes, it is my understanding the first mortgage can foreclose even if the property has one of these loans in a subordinate position. And if the first forecloses, these loans will have their security interest in the property wiped out. They may be able to pursue the former owner to collect the unpaid debt, but not the buyer at auction.

As for whether or not it is a “below market rate house,” the only thing that matters is whether or not there is a deed restriction limiting the resale of the property to certain parties. If you are concerned about that you should carefully review title. If the restriction was recorded after the foreclosing loan, it too should be wiped out by the foreclosure.

Best,  
Sean

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**Author:** ![Sean\_OToole](https://yyz1.discourse-cdn.com/flex029/user_avatar/community.propertyradar.com/sean_otoole/32/4_2.png) [@Sean\_OToole](https://community.propertyradar.com/u/Sean_OToole)\
**Post date:** [April 29, 2026, 10:18pm UTC](https://community.propertyradar.com/t/state-and-government-loan-calhfa-and-dalp/5212/4 "2026-04-29T22:18:47Z")

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Note that these are my opinions based on my experience, not legal advice, and I always recommend title insurance.