Types of California first-time homebuyer assistance
The following table provides an overview of the most common loan and down payment assistance options available to California homebuyers. Bear in mind that the right assistance program for you may depend on what type of mortgage you qualify for.
Compare California homebuyer assistance options
| Program name | Assistance type | Repayment terms | Notable features |
|---|---|---|---|
| CalHFA FHA loans | Easier to qualify for, with more favorable terms | 30-year fixed interest rate | Backed by the Federal Housing Administration |
| CalPLUS loans | Slightly higher rate than FHA, can be paired with ZIP | 30-year fixed interest rate | Must be combined with ZIP for closing cost assistance |
| MyHome assistance | Deferred loan for down payment or closing costs | No payments due until sale, refinance, payoff or default | Up to 3.5% of price, flexible pairing, 1% interest |
| ZIP (Zero Interest Program) | Closing cost loan with zero interest | Deferred, due at sale or refinance | No interest, covers only closing costs |
| GSFA down payment assistance | Second mortgage toward down payment | 15-year loan | Open to all low- or moderate-income buyers, up to 5.5% of first mortgage |
| Local programs | Varies by city (loans, price reductions, etc.) | Varies | May include resale price restrictions or ownership rules |
CalHFA loan programs
The California Housing Finance Agency, or CalHFA, has several programs that help first-time homebuyers. To qualify for most CalHFA options, you must:
- Be a first-time homebuyer, meaning you haven’t lived in a home you owned in the past three years
- Plan to live in the home as your primary residence
- Complete an approved homebuyer education course
- Meet income limits that vary by county
CalHFA loans include Federal Housing Administration (FHA) loans, the CalPLUS loan program and the Zero Interest Program (ZIP), which can help with closing costs.
CalHFA FHA loans
CalHFA offers an FHA loan with a 30-year fixed rate. FHA-backed loans are usually easier to qualify for and often have better terms than conventional loans.
CalPLUS loans
CalPLUS loans have slightly higher interest rates than FHA loans but still offer a 30-year fixed rate. These loans are combined with the CalHFA Zero Interest Program to cover closing costs.
ZIP closing cost loan
Paired with the CalPLUS Loan Program, the ZIP program offers an interest-free loan to help with closing costs. Note that you do pay a higher interest rate on the CalPLUS loan than you would on the standard CalHFA FHA loan.
Down payment assistance programs
Down payment assistance programs can bridge the gap between your savings and a qualifying down payment offer, helping you get into your new home sooner. California offers two major down payment assistance programs for first-time buyers:
- The MyHome assistance program is for first-time homebuyers only and can be paired with any CalHFA first mortgage.
- The Golden State Finance Authority (GSFA) down payment assistance program is available to all buyers with low or moderate income, not just first-time homebuyers.
Brian Green, a mortgage lender at Fresh Starts Registry, told us, “MyHome Assistance is a deferred second mortgage with a low interest rate. This means that the balance does not require a monthly payment like a typical mortgage, but it does incur interest until the day the mortgage is paid off.”
MyHome Assistance Program
The MyHome Assistance Program provides a deferred loan that can be put toward a down payment or closing costs. It pairs with CalHFA loans, including:
- CalHFA FHA loans
- CalPLUS FHA loans
- The ZIP closing cost loan
The loan must be paid off when the home is sold, refinanced or after 30 years. It accrues 1% simple interest, but no payments are due until the loan is repaid.
GSFA Down Payment Assistance
The GSFA Down Payment Assistance program is open to any low- or moderate-income buyer. It provides a second mortgage of up to 5.5% of the first mortgage amount.
For most borrowers, this loan isn’t deferred. Monthly payments begin immediately, and interest starts accruing as soon as the loan is issued. The term is 15 years. County employees in GSFA member counties may qualify for a deferred loan with 0% interest.
Mortgage credit certificate programs
Mortgage credit certificate (MCC) programs provide a nonrefundable federal tax credit for low- to moderate-income, first-time homebuyers. If you qualify for an MCC, you can receive a dollar-for-dollar credit for a percentage of the mortgage interest you pay. While this credit goes toward your federal tax liability, these programs are administered on the state and local level.
MCCs are available to residents of many California counties and cities. Jurisdictions with active MCC programs include the counties of Santa Clara, Orange, Santa Cruz, Riverside and El Dorado.
It’s important to note that MCC programs are dependent on available funding. For example, Contra Costa County and the cities of San Francisco and Los Angeles have programs, but as of publishing these programs are not accepting applications due to lack of funding.
Local homebuyer assistance programs
Several California cities and counties offer homebuyer assistance programs with income-based eligibility and unique repayment terms. These programs can usually be layered with statewide programs.
Los Angeles
Los Angeles offers two options through its housing department.
The Low Income Purchase Assistance Program (LIPA) provides deferred loans up to $161,000 for first-time buyers with a credit score of at least 660 and qualifying income. A property price limit of $930,622 applies.
The city requires repayment of a share of the home’s appreciation when the property is sold or refinanced. For example, if a buyer receives $100,000 and later sells the home for $250,000 more than they paid, the city would be owed 20% of that gain ($50,000) in addition to the original loan.
The Moderate Income Purchase Assistance Program (MIPA) is for buyers who earn too much for the low-income program. It follows a similar structure with deferred repayment and shared appreciation, but there’s no cap on the home’s purchase price and the loan maximum is $115,000.
San Diego
San Diego programs are offered through the San Diego Housing Commission (SDHC).
The SDHC First-Time Homebuyer Low-Income Program provides a deferred loan of up to 19% of the home’s purchase price, plus a grant of up to $10,000 for closing costs. Eligible buyers must earn less than 80% of San Diego’s median income.
The SDHC First-Time Homebuyer Middle-Income Program is for buyers earning between 80% and 150% of the area’s median income. It offers a deferred loan of up to $40,000 and up to $10,000 in additional assistance.
Other areas with similar programs as of publishing include:
- Fremont
- Fresno
- Norwalk
- Orange County
- Riverside County
- San Bernardino County
- San Mateo
If your city or county isn’t listed, contact your local housing commission to learn about available programs. Note that local programs typically run on limited funding and may end or pause applications when all available funds have been allocated.
Finding a loan officer
It's pretty easy to find a lender who offers first-time homebuyer programs, but experience matters.
“The good news for borrowers is that the majority of lenders offer first-time homebuyer programs,” said Green. “I recommend checking reviews online to see what past customers experienced, especially first-time buyers. It's important to confirm the lender can actually offer the program you're looking at and to ask how many of those loans they’ve handled. These are different from a typical purchase loan, so experience is important.”
If you’re not sure where to start, Green said many assistance program websites offer searchable databases of approved lenders. For example, CalHFA has a tool that lets you search by county or city to find approved lenders in your area.
California Dream For All Shared Appreciation Loan
The California Dream for All Shared Appreciation Loan was a deferred loan that helped first-time, first-generation homebuyers with their down payment. Unfortunately, the program is no longer accepting applications and has not been replaced by a direct alternative.
If you were interested in this program, it might be worth looking into CalHFA’s MyHome Assistance or GSFA Down Payment Assistance programs to find support for upfront costs.
FAQ
What programs are available for first-time home buyers in California?
California offers several programs for first-time home buyers, including CalHFA FHA loans, CalPLUS loans, the ZIP closing cost loan and down payment assistance programs. Many cities also offer local assistance.
What credit score do you need for a first-time home buyer in California?
In general, first-time home buyers need a credit score of at least 620. Some first-time homebuyer programs have additional credit score requirements. For example, the LIPA program in Los Angeles requires a minimum score of 660.
How does the CalHFA Zero Interest Program work?
The CalHFA Zero Interest Program is an assistance program that provides funds for closing costs and can be paired with the CalPLUS loan. It’s a deferred payment, zero-interest loan that is repaid when the original loan is paid off. The CalPLUS loan has a slightly higher interest rate than the standard CalHFA FHA loan.
Are there income limits for first-time homebuyer programs in California?
Yes, many first-time homebuyer programs in California have income limits. CalHFA’s programs, including FHA, CalPLUS and MyHome, follow federal limits set for FHA loans. Other programs, especially local ones, use limits based on a percentage of the area’s median income.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- CalHFA, "Borrower Eligibility Requirements." Accessed May 20, 2026.
- CalHFA, "CalHFA FHA Program." Accessed May 20, 2026.
- CalHFA, "CalPlus FHA Program." Accessed May 20, 2026.
- CalHFA, "MyHome Assistance Program." Accessed May 20, 2026.
- CalHFA," Buy your first home with little money out-of-pocket using CalHFA's CalPLUS with ZIP Program." Accessed May 20, 2026.
- Golden State Finance Authority, "GSFA Platinum Program." Accessed May 20, 2026.
- County of Santa Clara, "Mortgage Credit Certificate Program." Accessed May 20, 2026.
- Orange County California, "Mortgage Credit Certificate Program." Accessed May 20, 2026.
- Housing Authority of the County of Santa Cruz, "Mortgage Credit Certificate (MCC) Program." Accessed May 20, 2026.
- Menifee California, "Mortgage Credit Certificate Program." Accessed May 20, 2026.
- El Dorado County, "Mortgage Credit Certificate Program.” Accessed May 20, 2026.
- Contra Costa Conservation and Development, "Mortgage Credit Certificate Program." Accessed May 20, 2026.
- SF.gov, "Mortgage Credit Certificate." Accessed May 20, 2026.
- Los Angeles Housing Department, "How a Mortgage Credit Certificate Can Help You Buy a Home." Accessed May 20, 2026.
- Los Angeles Housing Department, "First-Time Homebuyers." Accessed May 20, 2026.
- Los Angeles Housing Department, "Helping low-income first-time homebuyers." Accessed May 20, 2026.
- Los Angeles Housing Department, "Help moderate-income first-time homebuyers." Accessed May 20, 2026.
- Los Angeles Housing Department, "Shared Appreciation Example." Accessed May 20, 2026.
- San Diego Housing Commission, “First-Time Homebuyers.” Accessed May 20, 2026.
- San Diego Housing Commission, “Middle-Income First-Time Homebuyer Program.” Accessed May 20, 2026.
- City of Fremont, "First Time Homebuyer Program." Accessed May 20, 2026.
- City of Fresno, “Mortgage Assistance Program (MAP) Guidelines.” Accessed May 20, 2026.
- City of Norwalk, “CalHome Program.” Accessed May 20, 2026.
- Orange County California, “Homeownership Program.” Accessed May 20, 2026.
- Riverside County Housing & Workforce Solutions, “Down Payment Assistance Programs.” Accessed May 20, 2026.
- Housing Authority of the County of San Bernardino, “Homeownership Assistance Program.” Accessed May 20, 2026.
- City of San Mateo California, “First-Time Home Buyer Program.” Accessed May 20, 2026.
- CalHFA, "California Dream For All Shared Appreciation Loan." Accessed May 20, 2026.
