CalHFA sets the interest rate on its conventional programs, so every participating lender should be quoting you essentially the same rate. A quote well above what you expected is a flag worth chasing down. It is true that lenders generally earn less on CalHFA loans. On a typical loan, the lender is compensated at closing or profits when the loan sells into the secondary market, and CalHFA's structure does not pay lenders that way, so the economics are thinner and the transaction leans more borrower-paid. That gives some lenders an incentive to steer you elsewhere, and one common tactic is quoting an inflated CalHFA rate to make a different, more profitable loan look better by comparison. That serves the lender, and it does not serve you. Since the program fixes the rate, choose your lender on the things that actually differ: real expertise with the program, competitive terms on the pieces they do control, and a transparent working relationship where the numbers get explained. If a quote does not match the program rate and the lender cannot clearly explain why, get a second opinion. Comparing CalHFA quotes side by side is exactly what we can do with you in the free Roadmap conversation.