California First Time Home Buyer Loans

California’s housing market doesn’t operate like the rest of the country — it operates in a league of its own. Redfin’s February 2026 data puts the statewide median sale price at $820,500, down 1.2% year over year but still more than double the national median. In San Francisco, the median hit $1.5 million in February, up 7.7%. In Los Angeles County, it’s $904,000, down 1.5%. In San Diego, $932,000, down 5.5%. Across every major metro, a 3.5% FHA down payment alone requires between $32,000 and $53,000 in cash — before closing costs.

The good news: California has more first-time homebuyer assistance than any other state, administered primarily through the California Housing Finance Agency (CalHFA). Buyers who understand how to layer state, local, and federal programs can eliminate most or all of their upfront costs. We published this guide to show California home buying consumers exactly which programs are available right now, what they require, and how the current market in your specific metro affects your strategy. RefiGuide helps California first time home buyers at no cost find state backed down-payment assistance, CA home buying grants and 2026 completive loan programs.

Reviewed March 2026 by Peter Miller, Nationally Syndicated Real Estate Columnist | Program data verified against CalHFA guidelines, March 2026. Last updated: March 20, 2026.

Popular First-Time Home Buyer Programs in California Offering Down Payment Help

California offers several programs to assist first-time homebuyers with down payments:

• MyHome Assistance Program: Provides a deferred-payment junior loan of up to 3.5% of the purchase price or appraised value for FHA home loans, and up to 3% for conventional loans, to help with down payment and/or closing costs.

• GSFA Platinum Program: Offers up to 5.5% of the loan amount in down payment assistance, available to both first-time and repeat buyers.

• CalHFA Zero Interest Program: Provides up to 3% of the total loan amount as a no-interest second loan to assist with closing costs.

California Housing Market Snapshot — February 2026

Understanding where the market stands in your target city is essential before choosing which programs to apply for — income limits, purchase price caps, and DPA amounts are all calibrated against local medians. Here is where the three largest metros sit as of February 2026 (Source: Redfin, February 2026 data):

What this means for first-time buyers: Southern California and San Diego prices have softened modestly, giving buyers slightly more negotiating room than in 2024–2025. San Francisco has reversed course and is appreciating again. The Inland Empire and Central Valley remain the most accessible entry points and are seeing increased demand from buyers priced out of coastal markets. Current 30-year fixed mortgage rate: 6.22% (Freddie Mac PMMS, March 19, 2026).

How Much Down Payment Do You Actually Need in California?

The table below shows the minimum cash required at closing for each metro at three common down payment levels — before accounting for any DPA programs. Use this to understand your target number before you start applying for assistance.

What California Loan Officers Are Saying Right Now

“The biggest mistake I see California first-time buyers make in 2026 is waiting on Dream For All and ignoring MyHome. Dream For All is a lottery — you have no control over whether you get selected. MyHome is available year-round, stacks with ZIP for closing costs, and can get most buyers into a home with less than 1% out of pocket on FHA. I tell every client: get pre-approved for MyHome now, register for Dream For All when it opens, and don’t pause your home search while you wait for a lottery result.”

— Tom Murphy, | NMLS # 662141 Senior Loan Officer, Answer Home Lending Group NMLS # 2343805, San Diego, CA

Murphy’s point reflects what we hear consistently from CalHFA-approved lenders across the state: the buyers who close are those who pursue available programs in parallel, not sequentially. Dream For All’s lottery structure makes it impossible to plan around — MyHome’s year-round availability makes it the dependable foundation of any California first-time buyer strategy.

California First-Time Home Buyer Programs — 2026

California’s assistance programs are administered primarily through CalHFA, which works through a network of over 200 approved lenders statewide. CalHFA does not lend directly to consumers — you must apply through a CalHFA-approved lender. Below are the key programs available as of March 2026.

CalHFA DPA Programs at a Glance — 2026

CalHFA MyHome Assistance Program

MyHome is CalHFA’s flagship down payment assistance program and the most widely used DPA option in California. It provides a deferred-payment junior loan — no monthly payments — that can be applied to your down payment or closing costs. There is no repayment until you sell, refinance, or transfer the property. (Source: CalHFA MyHome Program Handbook, verified March 2026.)

• FHA loan pairing: Up to 3.5% of the purchase price or appraised value, whichever is less
• Conventional loan pairing: Up to 3.0% of the purchase price or appraised value
• On a $700,000 home: Up to $24,500 in assistance (FHA) or $21,000 (conventional)
• Minimum credit score: 660 (FHA) / 680 (conventional)
• Income limits: Vary by county — range from ~$185,000 (inland counties) to ~$325,000 (San Francisco County), effective June 9, 2025. Verify your county at calhfa.ca.gov/homeownership/limits
• Requirement: Must complete a CalHFA-approved homebuyer education course
• Combinable with: CalHFA ZIP (closing costs), local DPA programs. Cannot be combined with Dream For All.

CalHFA Income Limits by County — Sample (Effective June 9, 2025)

Income limits vary by county and household size. The figures below are for a 4-person household. Limits are higher in expensive coastal counties. Always verify your exact county limit at calhfa.ca.gov/homeownership/limits before applying — limits update annually in June.

California Dream For All — Shared Appreciation Loan

⚠️ Important Program Update — March 2026: The Dream For All pre-registration portal opened February 24, 2026 and officially closed March 16, 2026 at 5:00 p.m. PDT. No new applications can be submitted at this time. CalHFA is currently processing applications and will conduct a randomized lottery drawing to select voucher recipients. All applicants will be notified of their status — selected, waitlisted, or not selected — through the DFA Portal and by email. Selected applicants typically have 90 days to find a home, secure financing, and reserve funds. Check your application status at calhfa.ca.gov/dream. Sign up for CalHFA alerts to be notified when the next round opens. (Source: CalHFA Dream For All Portal, verified March 20, 2026.)

When active, Dream For All provides:

• Up to 20% of the purchase price for down payment or closing costs, capped at $150,000
• No monthly payments — repaid upon sale, refinance, or transfer, plus a share of the home’s appreciation
• Eligibility: First-time, first-generation homebuyer (at least one borrower must not have been on a property title in the U.S. in the last seven years; the borrower’s parents must not currently hold title in the U.S.)
• Current California resident
• Income must meet CalHFA Dream For All county income limits
• Cannot be combined with CalHFA MyHome

CalHFA Zero Interest Program (ZIP)

ZIP provides a no-interest, deferred-payment second loan specifically for closing costs only — it cannot be used for down payment. It is paired exclusively with CalPLUS FHA or CalPLUS Conventional loans. (Verified March 2026, calhfa.ca.gov.)

• Amount: Up to 3% of the first mortgage loan amount
• No monthly payments; repaid upon sale, refinance, or transfer
• Can be stacked with MyHome for combined down payment and closing cost coverage
• Example: MyHome (3.5% down payment) + ZIP (3% closing costs) = 6.5% total assistance on a $500,000 home = $32,500 with no monthly payments on either

CalHFA Mortgage Credit Certificate (MCC)

The MCC is not a loan — it is a federal income tax credit available for the life of your mortgage. It converts 20% of your annual mortgage interest into a direct credit against your federal tax liability, up to $2,000 per year. Unlike a deduction, every dollar of MCC credit reduces your tax bill dollar-for-dollar. (Source: CalHFA MCC Program, verified March 2026.)

• Credit amount: 20% of annual mortgage interest paid, up to $2,000/year
• Available for the full term of your loan (30 years on a 30-year mortgage)
• Can be combined with CalHFA first mortgages AND most down payment assistance programs
• Increases effective buying power by reducing your net housing cost
• Income and purchase price limits apply by county

GSFA Platinum Program

The Golden State Finance Authority’s Platinum program offers up to 5.5% of the loan amount as a non-repayable grant for down payment or closing costs. Unlike CalHFA programs, GSFA Platinum is available to both first-time and repeat buyers. (Verified March 2026, gsfahome.org.)

• Grant amount: Up to 5.5% of the loan amount — no repayment required
• Minimum credit score: 640
• Available to first-time and repeat buyers
• Income limits apply; DTI must not exceed 50%
• Property must be primary residence

Local and City Programs Worth Knowing

Many California cities and counties operate their own DPA programs that stack on top of state programs. Notable examples as of early 2026:

• San Francisco DALP: Deferred Acquisition Loan Program offers up to $500,000 for qualifying buyers with incomes below 175% of AMI. No monthly payments; repaid upon sale or transfer. Contact SF Mayor’s Office of Housing.
• Los Angeles LIPA/MIPA: LA Housing offers deferred loans up to $140,000 (LIPA) or $75,000 (MIPA) for first-time, low-income buyers. Subject to funding availability. See housing.lacity.gov.
• Long Beach First-Time Homebuyer Program: Up to $25,000 in DPA and closing cost assistance for approximately 100 income-eligible households. See longbeach.gov/lbcd.
• San Diego County DPA: Multiple programs by city and county. Contact the San Diego Housing Commission for current program availability.

CalHFA First Mortgage Loan Options

All CalHFA DPA programs require a CalHFA first mortgage. Here are the primary options, all offering 30-year fixed rates through CalHFA-approved lenders. (Source: calhfa.ca.gov, verified March 2026.)

• CalHFA FHA Loan: FHA-insured, 30-year fixed rate. Minimum 660 credit score. Can be paired with MyHome or Dream For All.
• CalPLUS FHA Loan: Slightly higher rate than standard FHA; paired with ZIP for closing cost coverage.
• CalHFA Conventional Loan: Standard 30-year fixed conventional mortgage. PMI required if down payment below 20%. Minimum 680 credit score.
• CalPLUS Conventional Loan: Higher rate conventional paired with ZIP for closing costs.
• CalHFA VA Loan: VA-insured, 30-year fixed for eligible veterans and active-duty service members. Can be paired with MyHome CCA (closing cost assistance).
• CalHFA USDA Loan: 30-year fixed USDA-backed mortgage for buyers purchasing in eligible rural areas. Can be paired with MyHome.

FHA vs. Conventional: Which Is Right for California First-Time Buyers?

This is the most common strategic question CalHFA lenders encounter. The table below lays out the key differences for California buyers specifically.

Federal Loan Options for California First-Time Buyers

California first-time buyers can use any federal loan program in addition to state DPA. The key options are:

FHA Loans in California

FHA mortgage remain the most widely used path for California first-time buyers who don’t qualify for VA or USDA programs. The 3.5% minimum down payment is significant in California’s high-cost markets — on an $800,000 home, that’s $28,000 — but CalHFA MyHome can cover most or all of it. FHA loan limits in California’s high-cost counties (Los Angeles, San Diego, San Francisco, Orange) reach the 2026 national ceiling of $1,209,750 for a single-family home.

• Minimum credit score: 580 for 3.5% down; 500–579 for 10% down
• Mortgage insurance premium (MIP) required for the life of most FHA loans
• Must use a FHA-approved lender

Conventional Loans (Fannie Mae / Freddie Mac)

Conventional loans with as little as 3% down are available through Fannie Mae’s HomeReady and Freddie Mac’s Home Possible programs, both designed for low- to moderate-income borrowers. PMI is required below 20% down but can be cancelled once equity reaches 20% — an advantage over FHA MIP. Minimum 620–640 credit score for most conventional programs.

VA Loans for California Veterans

Eligible veterans and active-duty service members can purchase with zero down payment through VA loans — the most powerful financing tool available for those who qualify. No PMI, no sales price limit (since 2020), and competitive rates. California is home to a large active-duty and veteran population; VA loans are widely used across San Diego (near Camp Pendleton and MCAS Miramar), the Bay Area (near NAS Alameda and Travis AFB), and the Central Valley.

USDA Loans for Rural California

USDA loans offer 100% financing for buyers purchasing in eligible rural and suburban areas. In California, USDA-eligible areas include parts of the Central Valley, inland counties, and some communities in Northern California. Income limits apply based on household size and county.

Top CalHFA-Approved Lenders in California — 2026

You must use a CalHFA-approved lender to access any CalHFA program. Always verify current licensing at nmlsconsumeraccess.org.

First-Time Buyer Story — California

Illustrative example based on a typical 2025 CalHFA MyHome + ZIP closing facilitated through RefiGuide’s lender network. Borrower details are anonymized and representative of actual program outcomes, not a specific individual. Program terms reflect 2025–2026 CalHFA guidelines.

Borrower profile: A 31-year-old teacher in the Inland Empire (Riverside County), household income $82,000, credit score 672, no prior homeownership. Target purchase: $520,000 single-family home in Moreno Valley.

Programs used:

• CalHFA FHA first mortgage at 6.375% (30-year fixed)
• CalHFA MyHome: 3.5% = $18,200 toward down payment (deferred, no monthly payments)
• CalHFA ZIP: 3% = $15,600 toward closing costs (deferred, no monthly payments)
• CalHFA MCC: 20% annual mortgage interest credit, ~$1,900/year federal tax savings

Out-of-pocket at closing: Approximately $2,500 (inspection fees, homebuyer education course, prepaid insurance) — less than 0.5% of the purchase price.

Monthly mortgage payment (principal + interest): ~$3,042 at 6.375% on a $501,800 base loan. With MCC reducing effective housing cost by ~$158/month in federal tax savings, net housing cost approximately $2,884/month versus $2,600/month in rent on a comparable property.

Timeline: Pre-approval to close in 52 days. The additional CalHFA documentation added approximately 10 days to a standard FHA closing timeline. Key challenge: Riverside County income limit required careful documentation of household income to confirm program eligibility. Lesson: Work with a CalHFA-experienced lender from day one — the documentation requirements differ meaningfully from a standard FHA file.

How to Qualify for California First-Time Home Buyer Programs

Most CalHFA programs share a common eligibility baseline. Here is what you need to have in order before applying:

• First-time buyer status: Not owned a primary residence in the past three years (or buying in a CalHFA targeted area, or a veteran)
• Credit score: 660–680 minimum depending on loan type; some programs (GSFA Platinum) accept 640
• Income: Must fall within CalHFA county income limits (verify at calhfa.ca.gov)
• Homebuyer education: All CalHFA programs require completion of a CalHFA-approved 8-hour homebuyer education course
• Primary residence: All programs require the purchased home be your primary residence — investment properties do not qualify
• Approved lender: You must work with a CalHFA-approved lender
• Debt-to-income ratio: Most CalHFA programs require DTI at or below 45–50%

California’s broad first-time buyer definition is an important advantage: if you owned a home more than three years ago and have not owned since, you qualify again — the program treats you “back to being a first-time homebuyer.” This means many people who owned during the 2018–2021 period and have since sold, divorced, or relocated can access these programs.

Steps to Buy Your First Home in California

1. Check your credit score and report: Get your free reports at AnnualCreditReport.com and address any errors. For CalHFA, you need at least 660. Learn more about raising your mortgage FICO score.
2. Calculate your budget: Use your gross income, existing debts, and current rates (6.22% as of March 19, 2026) to estimate your maximum purchase price. Most lenders target a front-end DTI below 31% and back-end below 45%.
3. Get pre-approved — not just pre-qualified: A full pre-approval requires income documentation, credit pull, and asset verification. This is required before you can access CalHFA program funds, and sellers in California’s competitive market will not consider offers without it.
4. Complete homebuyer education: CalHFA requires an 8-hour course (approximately $100). Most buyers complete it online in 1–2 days. Do this before you shop — lenders need the completion certificate before CalHFA will approve funds.
5. Work with a CalHFA-approved lender: Confirm they participate in the specific programs you want (MyHome, Dream For All, ZIP, MCC). Not all approved lenders offer all programs.
6. Make an offer and open escrow: Include your CalHFA financing in your offer. Inform your agent that closing may take 45–60 days due to CalHFA documentation requirements — price your contingency timelines accordingly.
7. Close and take title: You will sign additional documents for each assistance program at closing. Your lender handles the CalHFA paperwork; your job is to provide requested documents promptly to keep the timeline on track.

Need guidance on the mortgage pre-approval process? Or are you still weighing whether to stop renting and buy? The RefiGuide has detailed guides on both.

See our full comparison of conventional loans vs. FHA mortgages for a detailed side-by-side breakdown.

Frequently Asked Questions — California First-Time Home Buyers

What is the income limit for CalHFA MyHome in California for 2026?

CalHFA income limits vary by county and household size. As of June 2025 (the most recent update), limits range from approximately $185,000 in lower-cost counties (e.g., Fresno, Kern) to $325,000 in San Francisco County. Find your specific county limit at calhfa.ca.gov/homeownership/limits. These limits are updated annually in June — confirm current figures before applying.

Is the California Dream For All program still available in 2026?

The Dream For All pre-registration portal closed March 16, 2026. CalHFA is currently processing applications and will conduct a randomized drawing to select voucher recipients. If you missed this round, sign up for CalHFA email alerts at calhfa.ca.gov to be notified when the next application window opens. Previous rounds have opened two to three times per year.

Can I qualify as a first-time buyer in California if I owned a home before?

Yes. CalHFA defines a first-time homebuyer as someone who has not owned a primary residence in the past three years. If you sold, lost, or vacated a home more than three years ago, you qualify again as a first-time buyer for program purposes. Veterans and buyers purchasing in CalHFA-designated targeted areas are exempt from this requirement entirely.

What credit score do I need for CalHFA programs?

Most CalHFA programs require 660 (for FHA-paired programs) to 680 (for conventional-paired programs). The GSFA Platinum grant program accepts a 640 minimum. If your score is below these thresholds, see our guide on fixing your credit before buying — most buyers can reach 660 within 3–6 months with targeted credit repair.

Can I combine CalHFA MyHome with the Dream For All program?

No. CalHFA explicitly prohibits combining MyHome with Dream For All on the same transaction. You must choose one or the other for down payment assistance. You can, however, pair Dream For All with CalHFA ZIP (closing cost assistance), and you can pair MyHome with ZIP for combined coverage of both down payment and closing costs.

How much down payment assistance is available in California?

It depends on your location and eligibility. CalHFA MyHome alone provides 3–3.5% of the purchase price. Dream For All provides up to $150,000. Stacking state and local programs — for example, CalHFA MyHome plus a city program — can cover both down payment and closing costs entirely. San Francisco’s DALP program offers up to $500,000 in deferred loans for qualifying buyers within city limits. For most buyers outside major cities, a combined $30,000–$60,000 in assistance is achievable.

Can I write off closing costs on a home loan in California?

Most closing costs aren’t tax-deductible. However, certain expenses like mortgage interest and points paid to reduce your interest rate may be deductible if you itemize deductions. It’s advisable to consult a tax professional to determine which costs are eligible based on your specific situation.

What Is the Dream For All Shared Appreciation Repayment Structure?

When you sell, refinance, or transfer your home, California’s Dream For All program requires repayment of the original loan amount plus a share of your home’s appreciation. If CalHFA provided 20% of the purchase price, you repay that 20% plus 20% of the home’s total appreciation at time of payoff. Buyers with incomes at or below 80% of Area Median Income (AMI) owe a reduced 15% appreciation share instead of 20%. The appreciation share is capped at 2.5 times the original loan amount, and if the home depreciates, only the principal is owed — not any appreciation.

Does California Have a First-Time Home Buyer Program for Teachers and Public Employees?

Yes — the CalHFA Extra Credit Teacher Home Purchase Program (ECTP) provides additional down payment assistance specifically for K–12 teachers, administrators, classified employees, and staff at qualifying California schools, generally in low- to moderate-income communities. ECTP assistance ranges from $7,500 to $15,000 in deferred-payment junior loans, stacked on top of CalHFA’s standard MyHome assistance. Eligibility requires employment at a qualifying school and meeting CalHFA income and purchase price limits. The program cannot be combined with Dream For All but pairs effectively with CalHFA FHA or conventional loans and the MCC tax credit.

What Is the CalVet Home Loan Program for California Veterans?

The CalVet Home Loan program, administered by the California Department of Veterans Affairs, provides below-market fixed-rate mortgages exclusively for California veterans, active-duty service members, and qualifying National Guard and Reserve members. Unlike CalHFA VA loans, CalVet loans are funded through state bond proceeds and offer built-in life and disability insurance at group rates, a unique benefit unavailable through any other program. CalVet loans work on a land contract model — the state holds title until the loan is paid off. Maximum loan amounts vary by county; buyers must intend to occupy the property as their primary residence.

What Are Average Closing Costs on Home Loans for First-Time Buyers in California?

California first-time buyers should budget 2%–5% of the purchase price in closing costs — on the state’s $792,800 median home sale price (Redfin, December 2025), that equals approximately $15,856–$39,640 at closing, one of the highest closing cost burdens in the country. California-specific costs include transfer taxes (varies by county — Los Angeles charges $4.50 per $1,000 of value), title insurance, escrow fees, and lender origination charges. CalHFA’s ZIP program (up to 3% of loan amount, zero interest, deferred) is the primary statewide tool for reducing closing cost exposure for first-time buyers using a CalHFA first mortgage.

Can a California First-Time Buyer Combine the GSFA Platinum Grant With CalHFA Programs?

The GSFA Platinum grant — up to 5.5% of the loan amount, never repaid — is specifically designed to work alongside FHA, VA, USDA, and conventional loans and is not limited to first-time buyers, making it one of California’s most flexible assistance options. However, it cannot be stacked directly with CalHFA programs in most cases because GSFA Platinum uses its own participating lender network rather than CalHFA-approved lenders. Buyers must choose between GSFA Platinum and CalHFA programs — not combine them. For buyers who don’t qualify for CalHFA income limits, GSFA Platinum is often the stronger alternative because it has no strict income cap and no shared appreciation repayment requirement.

What is the Mortgage Credit Certificate and how much can it save me?

The MCC converts 20% of your annual mortgage interest into a dollar-for-dollar federal tax credit, capped at $2,000 per year. On a $700,000 home at 6.22%, you would pay approximately $43,000 in interest in year one — 20% of that ($8,600) would qualify for the credit, capped at $2,000. That $2,000 annual credit equals roughly $167/month in reduced effective housing cost. Over a 30-year loan, the MCC can generate $60,000 or more in cumulative tax savings.

HUD-Approved Housing Counseling

If you would like free, independent guidance before applying for any of these programs, HUD-approved housing counselors in California can help you review your finances, understand program options, and prepare for the mortgage process at no charge. Call 800-569-4287 or visit hud.gov/counseling to find a HUD-approved agency near you. Many CalHFA-required homebuyer education courses are offered through HUD-approved agencies and can count toward program requirements.

Sources and References

• CalHFA MyHome Assistance Program Handbook. calhfa.ca.gov. Verified March 2026.
• CalHFA Dream For All Portal Update. calhfa.ca.gov/dream. Accessed March 20, 2026.
• CalHFA Income Limits, effective June 9, 2025. calhfa.ca.gov/homeownership/limits.
• Redfin. California Housing Market, February 2026. redfin.com. Accessed March 2026.
• Freddie Mac Primary Mortgage Market Survey. March 19, 2026. freddiemac.com/pmms.
• NMLS Consumer Access — lender verification. nmlsconsumeraccess.org.

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