First-Time Home Buyer California: 2026 Grants & Programs
Who counts as a first-time buyer, which California programs are open in 2026, what you need to earn, and every step from pre-approval to getting your keys.
Key Takeaway
In California you are a first-time buyer if you have not owned and occupied a home in the last 3 years. You can buy with 3% to 3.5% down using a conventional or FHA loan (0% with VA), and CalHFA's MyHome program can lend you up to 3.5% of the price for the down payment with no monthly payment. Most state and local help is a deferred loan you repay when you sell or refinance, not a grant, and it comes with county income limits ($214,000 in Los Angeles County for 2026).
Who Counts as a First-Time Home Buyer in California?
The 3-year rule
CalHFA defines a first-time buyer as someone who has not owned and occupied their home in the last three years, and has not lived in a home owned by a spouse in that time. So if you sold a home more than three years ago, you can qualify again. Most city and county programs use the same definition. Dream For All adds a second test: at least one buyer must be first-generation, meaning their parents do not own a home.
Is California giving first-time buyers $150,000?
Not as a gift. The headlines refer to California Dream For All, a loan of up to 20% of the purchase price, capped at $150,000, for first-generation buyers. You repay it when you sell, transfer, or pay off the home, plus 15% or 20% of the home's appreciation. The 2026 application window closed on March 16, 2026, and vouchers are awarded by lottery.
CalHFA Down Payment Assistance Programs
The California Housing Finance Agency (CalHFA) offers several programs designed to help first-time homebuyers cover down payments and closing costs.
MyHome Assistance Program
Provides a deferred-payment second mortgage of up to 3.5% of the purchase price with a CalHFA FHA loan, or 3% with a CalHFA conventional loan (of the price or appraised value, whichever is less), to help cover your down payment and closing costs. No monthly payments are required; the loan is repaid only when you sell, refinance, or pay off the first mortgage. This program can be combined with CalHFA's first mortgage products including conventional and FHA loans.
CalHFA ZIP (Zero Interest Program)
A zero-interest, deferred-payment second loan for closing costs. ZIP is not a standalone program: it comes bundled with CalHFA's CalPLUS FHA and CalPLUS Conventional first mortgages, which carry a slightly higher rate than the standard CalHFA loans in exchange. Like MyHome, no monthly payments are required and the loan is due on sale, refinance, or payoff of the first mortgage.
Dream For All
A shared appreciation loan of up to 20% of the purchase price (maximum $150,000) for first-generation buyers, with no monthly payments. When you sell, transfer, or pay off the home, you repay the original amount plus 15% or 20% of the appreciation. The 2026 window closed on March 16, 2026, and vouchers go by lottery, so get pre-approved and complete the free Dream For All course before the next round opens.
The Forgivable Equity Builder Loan, still listed on many sites, is closed: CalHFA reports its funds were fully reserved in November 2022. For amounts, income limits, and a worked example, see our CalHFA down payment assistance guide.
Program Comparison Table
Compare key features of California and federal homebuyer assistance programs at a glance.
| Program | Max Assistance | Income Limits | Min Credit Score | Key Details |
|---|---|---|---|---|
| CalHFA MyHome | 3.5% (FHA) or 3% (conventional) | $214K (LA County) | 640 FHA / 660–680 conv. | Deferred second mortgage; repaid on sale or refinance |
| CalHFA ZIP | Closing costs (with CalPLUS) | $214K (LA County) | 640 FHA / 660–680 conv. | Zero-interest deferred second mortgage |
| Dream For All | Up to 20% (max $150K) | $171K (LA County) | 660–680 (conventional only) | Shared appreciation; repay loan + share of gains |
| FHA Standard | 3.5% down | No income limit | 580 | Lower MI than conventional; flexible credit |
| HomeReady / Home Possible | 3% down | 80% AMI | 620 | Reduced MI; income from boarders/co-borrowers allowed |
| VA Loan | 0% down | N/A | No minimum | Veterans & active military; no PMI required |
First-Time Buyer Loan Options
Down payment help sits on top of a first mortgage. These are the loans first-time buyers in California use most, with or without assistance.
Conventional with 3% Down
Conventional loans allow 3% down for first-time buyers, and Fannie Mae HomeReady and Freddie Mac Home Possible offer reduced mortgage insurance if your income is at or under 80% of the area median. Unlike FHA, conventional mortgage insurance can be removed once you reach 20% equity, which often makes it cheaper over time for buyers with good credit.
Learn about conventional loans →FHA Loans
Federal Housing Administration loans are one of the most popular options for first-time buyers. With a minimum down payment of just 3.5% and credit scores accepted as low as 580, FHA loans make homeownership accessible to buyers who may not qualify for conventional financing. FHA loans also allow gift funds for the entire down payment and have more flexible debt-to-income ratio requirements.
Learn about FHA loans →VA Loans
Available to veterans, active-duty service members, and eligible surviving spouses, VA loans offer zero down payment, no private mortgage insurance (PMI), and competitive interest rates. There is no minimum credit score set by the VA, though individual lenders may have their own requirements. VA loans are one of the strongest homebuying benefits available to those who have served.
Learn about VA loans →USDA Loans
The USDA Rural Development loan program offers zero down payment financing for homes in eligible rural and suburban areas. While many people associate USDA loans with farmland, numerous communities in the outer Los Angeles suburbs and Inland Empire may qualify. Income limits apply and are based on the area median income for your county.
View all loan products →How Much Do You Need to Earn to Buy a First Home in California?
Take a $600,000 home in the San Gabriel Valley bought with an 30-year FHA loan. With 3.5% down ($21,000), the loan is about $589,000 after FHA's 1.75% upfront mortgage insurance is added. At an illustrative 6.5% rate, the monthly payment is about $3,720 for principal and interest, plus roughly $550 in property tax (estimated at 1.1%; Los Angeles County bills add voter-approved debt and local assessments to the 1% base), $125 in homeowners insurance (an estimate; get a quote for the property), and $265 in FHA annual mortgage insurance (0.55%): about $4,660 a month in total, before any HOA dues.
Using a conservative 43% limit on your total monthly debts, including that payment, as a share of gross income: with no other debts, that works out to roughly $130,000 a year; with a $500 car payment, about $144,000. Both are under the CalHFA income limit for Los Angeles County ($214,000), so a buyer at that income could also use MyHome to cover the $21,000 down payment. Some approvals allow more: CalHFA FHA permits up to 45% with an automated approval, or 50% with a credit score of 700 or higher, while manually underwritten loans stay at 43%.
These figures are an illustration, not a quote. Rates, taxes, and insurance vary; run your own numbers in our home affordability guide.
Local Down Payment Assistance in Los Angeles & San Gabriel Valley
Many cities and counties in Southern California offer their own down payment assistance programs that can be used alongside state and federal programs.
Los Angeles County Programs
- LA County Home Ownership Program (HOP) Run by the Los Angeles County Development Authority (LACDA). Its HOP80 and HOP150 programs offer up to $100,000 or 20% of the purchase price, whichever is less, for down payment and closing costs, for income-qualified first-time buyers in eligible areas. Funding opens in rounds.
- City of Los Angeles LIPA The Low Income Purchase Assistance program provides deferred loans for eligible buyers purchasing within LA city limits. It takes applications through a limited number of reservations released in rounds, so availability depends on funding and timing.
San Gabriel Valley & Local City Programs
- Pomona First-Time Buyer Program The City of Pomona has offered down payment assistance funded through CDBG and HOME allocations, but as of October 2026 the city reports that funding is not currently available.
- West Covina & Diamond Bar Some San Gabriel Valley cities participate in county-administered programs or offer their own neighborhood stabilization assistance. Availability changes with funding cycles, so contact us for the latest options in your city.
- Habitat for Humanity Programs San Gabriel Valley Habitat for Humanity runs a homeownership program with sweat equity and affordable mortgages. Its application period is currently closed; its mailing list announces the next one.
Mortgage Credit Certificates (MCC)
A Mortgage Credit Certificate turns part of your yearly mortgage interest into a federal tax credit, which reduces your tax bill dollar for dollar instead of only lowering your taxable income. The rest of your interest can still be deducted if you itemize.
CalHFA stopped issuing new MCCs in 2019, and as of October 2026 the other programs we track (the City of Los Angeles and the Golden State Finance Authority) report no available funding. MCC availability varies by issuing agency and funding, so contact us to check whether one is open for your purchase.
How to Buy Your First Home in California, Step by Step
From checking your credit to getting your keys. Most first-time buyers take two to four months, including about 30 days in escrow.
Check Your Credit and Eligibility
Pull your credit reports, pay down card balances, and fix any errors. Confirm you meet the first-time buyer definition and your county's income limit if you plan to use assistance. Credit minimums depend on the loan: 580 for FHA and 620 for conventional in general; for CalHFA, 640 on FHA (660 if manually underwritten) and 660 or 680 on conventional depending on income. Lenders can require more.
Complete Homebuyer Education
CalHFA programs require a homebuyer education course and certificate. CalHFA's online course through eHome costs $100; NeighborWorks and HUD-approved counselors offer in-person and virtual options, and the Dream For All course is free. Plan for about 6 to 8 hours.
Get Pre-Approved
Gather two years of W-2s or tax returns, 30 days of pay stubs, two months of bank statements, and your ID. A loan officer reviews your income, credit, and savings, tells you which programs you qualify for, and issues a pre-approval letter that makes your offer competitive.
Shop and Make an Offer
Work with a real estate agent to find a home within your pre-approved budget and make an offer. CalHFA itself has no sales price limit; your budget, the county income limit, and your first mortgage's loan limit are what cap the price.
Escrow: Inspection, Appraisal, and Loan Approval
Once your offer is accepted, escrow opens and typically runs about 30 days. You schedule a home inspection, the lender orders the appraisal, and underwriting approves your loan and any down payment assistance together. Avoid new credit or large purchases until closing.
Close and Get Your Keys
Review your Closing Disclosure at least three business days before signing, bring your remaining down payment and closing costs, sign with the escrow officer, and the home is yours when the deed records.
First-Time Homebuyer Grants FAQ
Answers to the most frequently asked questions about California homebuyer assistance programs.
Ready to Explore Your Options?
As a CalHFA-approved lender, NetCORE Lending™ can help you navigate every assistance program available in California. Get pre-qualified in minutes and find out how much help you can receive.
This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.
Reviewed by Joann Ton, Loan Officer (NMLS# 1461031) | Last updated: October 2026