Buying your first home in California is exciting—but also overwhelming when you see those down payment numbers. If the upfront cost is holding you back, first-time homebuyer down payment assistance programs might be exactly what you need.
Without these programs, a 20% down payment on a $600,000 home would run you $120,000. That’s a huge pile of cash to stack up. But you don’t always need 20% down, and with the right help, you can get into a home much faster.
What Is Down Payment Assistance?
Down payment assistance (DPA) is designed to help buyers put money down on a home without draining their savings. Programs can come in the form of:
- Grants: Free money you don’t have to pay back.
- Low-interest loans: Extra financing that covers part of your down payment.
- Deferred loans: No payments required until you sell or refinance.
- Forgivable loans: Loans that get wiped out if you meet program terms (usually staying in the home for a few years).
These programs are often backed by state agencies, nonprofit organizations, and local governments. In California, there are some huge opportunities you should be looking at.
Top Down Payment Assistance Programs in California
California has plenty of options, and you don’t want to miss out on free or low-cost money that can help get you into a home faster.
1. CalHFA MyHome Assistance Program
This program, managed by the California Housing Finance Agency (CalHFA), offers a loan up to 3.5% of the home’s price. You don’t have to pay it back until you sell, refinance, or fully pay off your mortgage.
- Who’s eligible? First-time homebuyers in California.
- Property requirements? You must live in the home as your primary residence.
- Income limits? Yes, but they vary by county. Check CalHFA’s website for details.
2. CalHFA ZIP (Zero Interest Program)
The ZIP program covers part of your closing costs with a 0% interest loan. It pairs well with other CalHFA loans to keep upfront costs manageable.
- No monthly payments—loan repayment happens when you sell the home.
- Must be used with a CalHFA mortgage loan.
3. GSFA Platinum Program
Golden State Finance Authority (GSFA) offers grants—yes, free money—up to 5% of the home’s loan amount. You don’t have to repay it.
- Works with FHA, VA, USDA, and Conventional loans.
- No strict first-time homebuyer requirement.
If grants or forgivable loans sound good, this could make homeownership way easier to afford.
4. City and County Programs
Many local governments offer their own first-time homebuyer down payment assistance programs. Some well-known ones include:
- Los Angeles First Home Mortgage Program – Offers closing cost assistance.
- San Diego’s First-Time Homebuyer Program – Provides deferred-payment loans.
- Sacramento’s CalHome Loan Program – Helps with down payment support for lower-income buyers.
Look into what’s available in your county, since these programs often have fewer applicants and better chances of approval.
How to Qualify for Down Payment Assistance
Not every program works the same, but here are some common qualifying factors:
- First-time homebuyer status: Defined as not having owned a home in the past three years.
- Income limits: Many programs have limits based on local median income.
- Credit score requirements: Most require a score of at least 620-660.
- Occupancy requirements: You must live in the home (no investment properties).
FAQs
Do I need to pay back down payment assistance?
It depends on the program. Grants don’t need to be repaid. Loans might be deferred or forgivable after a set period.
What’s the minimum credit score needed?
Most programs require at least a 620-660 score, though some grant programs might be more flexible.
Can I combine multiple programs?
Often, yes! Many first-time homebuyer down payment assistance programs allow you to stack options for better deals. Check eligibility for each.
Conclusion
Securing down payment assistance can make homeownership way more achievable in California. The key is knowing where to look and starting early. For more first-time buyer insights, check out our other guides on real estate investing.
