You don't need $100,000 saved to buy a home in California.
Down payment assistance (DPA) programs can provide 3.5% to 20% of your purchase price — sometimes as a grant you never repay, sometimes as a zero-interest loan.
I'm Bill McCoy, a California mortgage broker (CA DRE #01212512) with 15 years of experience helping buyers access these programs. Most people don't know they exist. That's leaving money on the table.
The Big Three California Programs
1. CalHFA Dream For All (Up to 20%)
This is the holy grail of California DPA programs.
What you get: Up to 20% of your home's purchase price or appraised value — whichever is less.
The catch: It's a shared appreciation loan. When you sell or refinance, you repay the original amount plus 20% of any appreciation.
Example:
- You buy a $500,000 home
- CalHFA provides $100,000 (20%)
- Home appreciates to $650,000
- When you sell, you owe: $100,000 + 20% of $150,000 gain = $130,000
Who qualifies:
- First-generation homebuyers (parents didn't own a home when you turned 18)
- Income limits apply (varies by county)
- Must use a CalHFA-approved lender
The reality: This program has been so popular that it uses a lottery system. Applications are accepted in windows, and slots are filled by random selection.
Broker's Tip: Even if you owe back 20% of appreciation, you're still building equity with zero money down. In California's market, that's powerful. A $500K home that appreciates to $650K leaves you with $120K profit after repaying the DPA loan.
2. CalHFA MyHome Assistance (3.5%)
More modest, but way more accessible.
What you get: A deferred junior loan for up to 3.5% of the purchase price to cover down payment and/or closing costs.
The deal: Zero interest, no monthly payments. You only repay when you sell, refinance, or pay off your first mortgage.
Example:
- You buy a $500,000 home with FHA (3.5% down required)
- MyHome provides $17,500
- You contribute $0 out of pocket (if closing costs are covered separately)
- When you sell 7 years later, you owe back $17,500 — that's it. No interest.
Who qualifies:
- First-time homebuyers OR first-generation homebuyers
- Income limits (typically $184,000-$250,000+ depending on county and household size)
- Must use CalHFA first mortgage (FHA, VA, or USDA)
This is the program I recommend to most buyers. It's reliable, predictable, and widely available.
3. CalHFA ZIP (Zero Interest Program)
Need help with closing costs but you've got your down payment covered?
What you get: Up to $10,000 for closing costs, prepaid expenses, or cash reserves.
The deal: Another deferred junior loan. Zero interest, zero monthly payment.
Who qualifies:
- Any CalHFA borrower (no first-time requirement)
- Can be stacked with MyHome
So you could get 3.5% from MyHome + $10,000 from ZIP on the same transaction.
Other Statewide Programs
Golden State Finance Authority (GSFA)
CalHFA's smaller sibling. Offers similar programs with slightly different underwriting.
GSFA Platinum Program:
- Down payment assistance up to 3% or 3.5%
- Zero interest, deferred repayment
- Slightly more flexible on credit scores
Chenoa Fund
A national program available in California.
What you get: 3.5% down payment assistance for FHA or VA loans.
The catch: You pay it back over time as part of your monthly mortgage payment (it's not deferred). Interest rate is typically prime + 0%.
Who it's for: Buyers who want help but don't mind a slightly higher monthly payment.
Local City and County Programs
Many California cities and counties offer their own DPA programs. These stack on top of state programs.
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Los Angeles County
LA County Home Ownership Program:
- Up to $75,000 in down payment assistance
- 3% silent second mortgage (deferred payment, no interest)
- Income limits: $127,200 for family of 4
San Diego County
County of San Diego Home Buyer Assistance:
- Up to $30,000 for down payment/closing costs
- Must purchase in unincorporated areas
- Income limits apply
City of San Francisco
Downpayment Assistance Loan Program (DALP):
- Up to $200,000 for down payment (you read that right)
- Repaid when you sell
- Must be first-time buyer and meet income limits
Orange County
OC Housing Authority Programs:
- Multiple programs offering 3-6% assistance
- Some city-specific programs in Anaheim, Santa Ana
- Income limits vary
Sacramento
CalHOME Program:
- Up to $16,500 for down payment/closing
- Deferred loan, no interest
Broker's Tip: Always check if your city or county has a local program. Many are first-come-first-served and run out of funding mid-year. Apply early.
How to Stack Programs
You can often combine multiple programs:
Example stack:
- 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 on zero money out of pocket
Check with your lender to see which programs can be combined. Most allow stacking.
Income Limits by County (2026)
Income limits vary by county and household size. Here are some examples for a family of 4:
| County | MyHome Income Limit | Dream For All Limit |
|---|---|---|
| Los Angeles | $225,600 | $184,450 |
| Orange | $225,600 | $184,450 |
| San Diego | $191,300 | $159,100 |
| Riverside | $159,100 | $136,650 |
| Sacramento | $166,100 | $136,650 |
| Fresno | $122,600 | $102,950 |
Limits are higher for larger households and in high-cost areas.
Check your county limits on CalHFA's website
Credit Score Requirements
Most DPA programs require:
- Minimum 640 credit score for CalHFA MyHome
- 680+ for Dream For All
- 580-620 for some local programs
If your score is below 640, focus on improving it before applying. See our credit improvement guide
How to Apply
Step 1: Find a CalHFA-approved lender (Better Offers Inc is approved — we can help).
Step 2: Get pre-approved for the first mortgage.
Step 3: Your lender applies for the DPA program on your behalf.
Step 4: Complete homebuyer education (required for most programs).
Step 5: Find a home and make an offer.
Most DPA programs require you to attend a homebuyer education course. It's typically 6-8 hours, available online, and costs $50-$100.
What If You're Not a First-Time Buyer?
Some programs are first-time only, but not all.
Options for repeat buyers:
- CalHFA ZIP (no first-time requirement)
- Some GSFA programs
- Teacher Next Door / Heroes for Homeownership programs (if you're a teacher, firefighter, police, etc.)
"First-time buyer" is also defined broadly. If you haven't owned a home in the past 3 years, you count as a first-time buyer for most programs.
The Downsides
DPA programs are powerful, but they come with tradeoffs:
1. Slightly higher interest rates: CalHFA loans are typically 0.25-0.5% higher than conventional loans without DPA.
2. Lender restrictions: You must use an approved lender. Shopping around is harder.
3. Funding windows: Programs run out of money. If you apply after funds are exhausted, you wait until the next allocation.
4. Repayment risk: If you refinance to a lower rate in 2 years, you'll need to repay the DPA loan. That's a chunk of cash.
5. Appraisal risk with Dream For All: If your home doesn't appraise, your DPA amount decreases (it's based on the lower of purchase price or appraised value).
Broker's Tip: Even with the higher rate, you're building equity instead of renting. Run the numbers. A 6.75% CalHFA loan with $0 down often beats a 6.25% conventional loan with $40,000 down if you don't have that $40K sitting around.
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Who Should Use DPA?
You're a perfect candidate if:
- You earn a decent income but haven't saved a large down payment
- You're in a high-cost California market
- You plan to stay in the home for at least 5 years
- You qualify for first-time or first-generation buyer status
You should skip DPA if:
- You already have 10-20% saved
- You want maximum rate-shopping flexibility
- You plan to refinance within 2-3 years
Real-World Example
Maria and David, San Jose:
- Combined income: $150,000
- Savings: $12,000
- Credit scores: 690 and 705
- Looking at homes around $650,000
Without DPA, they'd need:
- $19,500 down payment (3% conventional)
- $16,000 closing costs
- Total cash needed: $35,500 — they don't have it
With CalHFA MyHome + ZIP:
- MyHome provides $22,750 (3.5%)
- ZIP provides $10,000 for closing costs
- Out-of-pocket: $2,750 (covered by their savings)
They're able to buy. Without DPA, they'd rent for another 2 years while saving.
How Much Help Do You Actually Need?
Use our calculator to see what your out-of-pocket costs would be with and without assistance:
Calculate Your Down Payment Needs
Start the Process
Don't wait for funding windows to close. Get pre-approved now so you're ready when the right home hits the market.
Better Offers Inc | CA DRE #01212512
CalHFA-Approved Lender
FAQ
Q: Can I use DPA on a condo?
A: Yes, as long as the condo is FHA-approved (for CalHFA MyHome with FHA) or meets standard Fannie/Freddie guidelines.
Q: What if I make too much for CalHFA but still can't afford a down payment?
A: Look at conventional 3% down programs or save up while improving your credit to get the best rate. Some local programs have higher income limits.
Q: Do I have to repay DPA if I'm foreclosed on?
A: Typically no. DPA loans are forgiven if you lose the home to foreclosure. But this varies by program — read the fine print.
Q: Can I use DPA on a manufactured home?
A: Some programs yes, some no. CalHFA allows it if the home is on a permanent foundation and meets guidelines.
Q: Does DPA affect my debt-to-income ratio?
A: No. Deferred junior loans (MyHome, ZIP) have no monthly payment, so they don't count against your DTI.
Q: Can veterans use DPA?
A: Yes. VA loans are eligible for CalHFA MyHome and ZIP programs. You can literally buy a home with $0 down and $0 out of pocket (if you stack VA + MyHome + ZIP).
Q: How long does it take to get approved for DPA?
A: The DPA approval happens simultaneously with your mortgage pre-approval. Typically 3-5 business days for full underwriting.