You don't need $100,000 saved to buy a home in California.
Down payment assistance (DPA) programs can cover 3.5% to 20% of your purchase price — sometimes as a grant you never repay, sometimes as a zero-interest loan. Most buyers don't know these exist. That's money left on the table.
I'm Bill McCoy, a California mortgage broker (CA DRE #01212512). I've spent 15 years helping buyers tap into these programs. Here's what's available right now.
CalHFA Dream For All (Up to 20%)
This is the best DPA deal in the state.
What you get: Up to 20% of your home's purchase price or appraised value — whichever is less. It's a shared appreciation loan. When you sell or refinance, you repay the original amount plus 20% of any appreciation.
Quick math: Buy a $500,000 home. CalHFA provides $100,000. Home appreciates to $650,000. You owe $100,000 + 20% of $150,000 = $130,000. You still pocket $120,000 in profit.
Who qualifies: First-generation homebuyers (parents didn't own a home when you turned 18), income limits by county, and you must use a CalHFA-approved lender. This program's so popular it runs on a lottery system — applications open in windows, and slots are filled randomly.
CalHFA MyHome (3.5%)
More modest, but way more accessible. This is the one I recommend to most buyers.
What you get: A deferred junior loan for up to 3.5% of the purchase price — that's $17,500 on a $500K home. Zero interest. No monthly payments. You only repay when you sell, refinance, or pay off your first mortgage.
Who qualifies: First-time homebuyers OR first-generation homebuyers. Income limits typically run $184,000-$250,000+ depending on county. Must use a CalHFA first mortgage (FHA, VA, or USDA).
CalHFA ZIP ($10,000 for Closing Costs)
Got your down payment but need help with closing costs?
Get a Purchase Quote
See what you can qualify for and compare purchase loan options before you shop.
CA DRE #01212512 | Free, no-obligation quote
What you get: Up to $10,000 for closing costs, prepaid expenses, or cash reserves. Zero interest, zero monthly payment. Another deferred junior loan.
Who qualifies: Any CalHFA borrower — no first-time buyer requirement. And here's the key: ZIP stacks with MyHome. So you could get 3.5% from MyHome + $10,000 from ZIP on the same deal.
How to Stack Programs
You can often combine multiple programs on one transaction:
- CalHFA MyHome: 3.5% ($17,500 on $500K home)
- CalHFA ZIP: $10,000 for closing costs
- Local county program: $15,000 additional assistance
- Total help: $42,500 with zero money out of pocket
Check with your lender to see which programs can be combined. Most allow stacking. For city- and county-specific programs in LA, San Diego, San Francisco, and more, read our guide to local DPA programs in California.
Credit Scores and Tradeoffs
Most DPA programs require a minimum 640 credit score for MyHome and 680+ for Dream For All. Some local programs go as low as 580. If you're below 640, work on your score first.
The tradeoffs are real. CalHFA loans run about 0.25-0.5% higher in rate than conventional loans without DPA. You must use an approved lender. And if you refinance within a few years, you'll repay the DPA loan early — that's a chunk of cash.
But even with the higher rate, you're building equity instead of renting. A 6.75% CalHFA loan with $0 down often beats a 6.25% conventional loan requiring $40K you don't have.
Who Should Use DPA?
Good fit: You earn decent income but haven't saved a large down payment. You're in a high-cost California market. You plan to stay at least 5 years. You qualify for first-time or first-generation buyer status.
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Local Down Payment Assistance Programs in California (2026)
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Skip it if: You already have 10-20% saved, you want maximum rate-shopping flexibility, or you plan to refinance within 2-3 years.
Haven't owned in the past 3 years? You count as a "first-time buyer" for most programs — even if you've owned before.
How to Apply
- Find a CalHFA-approved lender (Better Offers Inc is approved — we can help)
- Get pre-approved for the first mortgage
- Your lender applies for the DPA program on your behalf
- Complete homebuyer education (6-8 hours, available online, $50-$100)
- Find a home and make an offer
Don't wait for funding windows to close. Get pre-approved now so you're ready when the right home hits the market.
New to buying? Start with our First-Time Homebuyer's Guide to California.
Better Offers Inc | CA DRE #01212512
CalHFA-Approved Lender