Down Payment Assistance Programs in California: 2025 Guide

By Daniel Ramirez

Key Takeaways

  • California offers various down payment assistance programs, including grants, forgivable loans, deferred loans, and low-interest loans, to help residents purchase homes.
  • The California Housing Finance Agency (CalHFA) is a primary source for state-level assistance, with programs like MyHome, ZIP, and the Forgivable Equity Builder Loan.
  • Many California cities and counties provide additional local down payment assistance options, such as those in Los Angeles, San Diego, and the Bay Area.
  • Buyers often need to meet eligibility criteria such as first-time buyer status, income limits, and complete homebuyer education to qualify for assistance.

Down Payment Assistance Programs in California: 2025 Guide

The down payment is often the biggest barrier to homeownership. Fortunately, California offers numerous programs that can help you buy a home with significantly less cash upfront.

Types of Down Payment Assistance

Down payment assistance (DPA) comes in several forms:

Type How It Works Repayment

Grants Free money — no repayment required Never

Forgivable Loans Forgiven after a set period (5-10 years) Only if you sell/refinance early

Deferred Loans No payments until you sell or refinance At sale/refinance

Low-Interest Loans Second mortgage at below-market rates Monthly payments

CalHFA Programs

The California Housing Finance Agency (CalHFA) is the state's primary source of down payment assistance.

CalHFA MyHome Assistance Program

  • Amount: Up to 3.5% of purchase price
  • Type: Deferred-payment junior loan
  • Rate: Matches your first mortgage rate
  • Repayment: Due when you sell, refinance, or pay off the first mortgage
  • Eligible: First-time buyers with qualifying income

CalHFA Zero Interest Program (ZIP)

  • Amount: Up to 3% of loan amount
  • Type: Zero-interest deferred loan
  • Repayment: Due when you sell, refinance, or transfer
  • Eligible: Must be used with a CalHFA first mortgage

CalHFA Forgivable Equity Builder Loan

  • Amount: Up to 10% of purchase price (max $150,000)
  • Type: Forgivable loan
  • Forgiveness: 20% forgiven each year over 5 years
  • Income Limit: 80% of Area Median Income (AMI)

Income Limits for CalHFA Programs

County Income Limit (2025)

Los Angeles $180,000

San Diego $168,000

Orange $180,000

Riverside $132,000

Sacramento $132,000

San Francisco $198,000

Limits vary by program and household size. Check current limits for your area.

Local City and County Programs

Many California cities and counties offer additional assistance:

Los Angeles Programs

  • LIPA (Low Income Purchase Assistance): Up to $140,000 for low-income buyers
  • MIPA (Moderate Income Purchase Assistance): Up to $100,000 for moderate-income buyers

San Diego Programs

  • CalHome Program: Deferred loans up to $80,000
  • SDHC First-Time Homebuyer Program: Deferred loans with various qualifying criteria

Bay Area Programs

  • MOHCD Down Payment Assistance (San Francisco): Up to $375,000 for qualifying buyers
  • Emeryville First-Time Homebuyer Program: Up to $250,000 in assistance

Federal Programs Available in California

FHA Loans

  • Minimum 3.5% down payment
  • Can combine with state and local DPA programs
  • Credit scores as low as 580

VA Loans

  • Zero down payment for eligible veterans
  • No PMI required
  • Can be combined with DPA for closing costs

USDA Loans

  • Zero down payment in eligible rural areas
  • Parts of California qualify (Central Valley, rural counties)

Employer-Assisted Housing Programs

Some California employers offer housing benefits:

  • Teacher programs — Special financing for educators
  • Healthcare worker programs — Assistance for nurses and medical professionals
  • Government employee programs — Benefits for public sector workers
  • Tech company programs — Some Silicon Valley employers offer housing stipends

How to Qualify for DPA

Most programs share common requirements:

  • First-time buyer status — Haven't owned a home in 3+ years (some exceptions)
  • Income limits — Typically 80-120% of Area Median Income
  • Homebuyer education — Complete an approved course
  • Primary residence — Must live in the home
  • Credit requirements — Usually 640-680 minimum score
  • Purchase price limits — Vary by county and program

Combining Multiple Programs

You can often stack multiple assistance programs:

Example Stack for a $500,000 Home:

Source Amount Type

CalHFA MyHome $17,500 (3.5%) Deferred loan

Local City Grant $10,000 Grant

Employer Program $5,000 Grant

Your Savings $5,000 Cash

Total Down Payment $37,500 (7.5%) Mixed

Your out-of-pocket cost: only $5,000 on a half-million dollar home.

Steps to Access DPA Programs

  • Complete homebuyer education — Required by most programs
  • Check your income eligibility — Compare to county limits
  • Get pre-approved with a DPA-approved lender
  • Apply for programs before making an offer
  • Find an eligible property within price limits
  • Coordinate with your lender to layer programs effectively

Common Mistakes to Avoid

  • Not applying early enough — Many programs have limited funding
  • Ignoring local programs — City/county programs can be very generous
  • Choosing the wrong lender — Not all lenders participate in DPA programs
  • Missing homebuyer education — This is a hard requirement
  • Exceeding income limits — Check limits before you apply

We Specialize in DPA Programs

Navigating down payment assistance can be complex, but our team has extensive experience helping California buyers access every program they qualify for. We'll match you with the best combination of programs to minimize your out-of-pocket costs.

Contact us today to find out which programs you qualify for and start your path to homeownership.

Frequently Asked Questions

What types of down payment assistance are available in California?

California offers various types, including grants (no repayment), forgivable loans (repaid only if conditions like selling early are met), deferred loans (repaid at sale/refinance), and low-interest second mortgages. Each program has unique terms to support homebuyers.

What is CalHFA and how does it help first-time homebuyers?

CalHFA (California Housing Finance Agency) is the state's main provider of DPA. It offers programs like MyHome Assistance, ZIP, and the Forgivable Equity Builder Loan, often as deferred junior loans, to help eligible first-time homebuyers cover down payments and closing costs.

Can I combine multiple down payment assistance programs?

Yes, it is often possible to combine or 'stack' multiple down payment assistance programs. For example, a CalHFA program might be combined with a local city grant or even an employer-assisted housing benefit to maximize your total assistance.