California first-time homebuyer programs
Many include 30-year loans and second mortgages for down payments
+1 more
California’s real estate market can be overwhelming even for seasoned buyers. For first-time homebuyers, it can feel especially challenging. Luckily, California offers several programs designed to make it easier. Programs like CalHFA loans and the MyHome Assistance Program provide everything from low-interest loans to help with closing costs and down payments, making homeownership more accessible across the state.
CalHFA offers fixed-rate loans and deferred assistance to help first-time buyers afford upfront costs.
Jump to insightMyHome and GSFA provide down payment assistance, but only MyHome defers payments until the home is sold or refinanced.
Jump to insightMany cities, including Los Angeles and San Diego, offer programs with shared appreciation or income-based aid.
Jump to insightThe ZIP program helps with closing costs but is only available when paired with a CalPLUS loan.
Jump to insightTypes 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:
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 or payoff | 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% 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 FHA loans
CalHFA offers a Federal Housing Administration (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 Zero Interest Program (ZIP) 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
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. 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.
City-specific homebuyer assistance programs
Several California cities offer homebuyer assistance programs with income-based eligibility and unique repayment terms.
Los Angeles offers two options through its housing department.
The Low Income Purchase Assistance (LIPA) Program, also called LIPA, provides deferred loans up to $161,000 for first-time buyers with a credit score of at least 660 and qualifying income. Property price limits apply: $1,081,100 for a single-family home or $679,250 for a condo.
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, also called 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.
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 25% 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 include:
- Fremont
- Fresno
- Norwalk
- Oakland
- Orange County
- Riverside County
- San Bernardino County
- San Francisco
- San Mateo County
If your city or county isn’t listed, contact your local housing commission to learn about available programs.
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.
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.
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 catch is that 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:
- Citizens Bank, "Understanding a HELOC: draw vs repayment period." Accessed May 14, 2025.
- CalHFA, "CalHFA FHA Program." Accessed May 14, 2025.
- CalHFA, "CalPlus Loan Program." Accessed May 14, 2025.
- CalHFA, "MyHome Assistance Program." Accessed May 14, 2025.
- Golden State Finance Authority, "GSFA Platinum Program." Accessed May 14, 2025.
- CalHFA," Buy your first home with little money out-of-pocket using CalHFA's CalPLUS with ZIP Program." Accessed May 14, 2025.
- Los Angeles Housing Department, "First-Time Homebuyers." Accessed May 14, 2025.
- Los Angeles Housing Department, "Helping low-income first-time homebuyers." Accessed May 14, 2025.
- Los Angeles Housing Department, "Help moderate-income first-time homebuyers." Accessed May 14, 2025.
- CalHFA, "Borrower Eligibility Requirements." Accessed May 14, 2025.
- Capital One, "FHA vs Conventional loans: What's the difference?" Accessed May 14, 2025.
- Los Angeles Housing Department, "Shared Appreciation Example." Accessed May 14, 2025.
- Affordable Housing Clearinghouse, "Orange County Mortgage Assistance Program (MAP)." Accessed May 14, 2025.
- NPHS, "Inland Empire Down Payment Assistance." Accessed May 14, 2025.
- SF.gov, "Downpayment Assistance Loan Program (DALP)." Accessed May 14, 2025.
- San Mateo County Community College District, "Homebuyer Programs." Accessed May 14, 2025.
- City of Norfolk, "First Time Homebuyer Program." Accessed May 14, 2025.
- City of Oakland. "First Time Homebuyer Mortgage Assistance Program." Accessed May 14, 2025.
- City of Fremont, "First Time Homebuyer Program." Accessed May 14, 2025.
- CalHFA, "CalHFA MyHome Assistance Program." Accessed May 14, 2025.
- CalHFA. "Dream For All Shared Appreciation Loan Program Handbook." Accessed May 14, 2025.
- Equifax, "What's a Good Credit Score for First-Time Homebuyers?" Accessed May 18, 2025.
