First-Time Homebuyer Grants & Programs in California (2026)
California offers some of the most generous homebuyer assistance programs in the country. Discover grants, deferred loans, and forgivable assistance that can help you buy your first home with little to no money down.
Key Takeaway
California offers over $40,000 in combined down payment and closing cost assistance through CalHFA and local programs. First-time buyers can purchase a home with as little as 0%–3.5% down using FHA, VA, or conventional loans paired with down payment assistance. Many of these programs feature deferred payments, zero-interest terms, or full forgiveness after a set period of homeownership.
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 (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)
Offers a zero-interest, deferred-payment second mortgage of up to 3% of the first mortgage amount. Like MyHome, no monthly payments are required and the loan is due only upon sale, refinance, or payoff of the first mortgage. ZIP is available with CalHFA conventional first mortgages and provides additional flexibility for buyers who need help bridging the gap between savings and the required down payment.
Forgivable Equity Builder Loan
One of California's most generous assistance programs, providing up to $40,000 as a forgivable loan. The loan requires no monthly payments and is fully forgiven after five years of continuous owner-occupancy. This program is designed to help build equity for first-generation homebuyers and those in underserved communities. Income limits apply and vary by county.
Dream For All
A shared appreciation program that provides up to 20% of the purchase price as a down payment loan with no monthly payments. In exchange, when you sell or refinance, you repay the original loan amount plus a share of the home's appreciation. This program is subject to available funding and has been extremely popular — contact us early to check availability and secure your spot when new funding rounds open.
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 | $15K–$20K | County limits | 660 | Deferred second mortgage; repaid on sale or refinance |
| CalHFA ZIP | Up to 3% | County limits | 660 | Zero-interest deferred second mortgage |
| Forgivable Equity Builder | Up to $40K | County limits | 660 | Forgiven after 5 years of owner occupancy |
| Dream For All | Up to 20% | County limits | 660 | 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 |
Federal Homebuyer Assistance
In addition to California state programs, several federal loan programs offer low or zero down payment options for first-time buyers.
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 →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 DPA Program — Offers down payment and closing cost assistance for low-to-moderate income first-time buyers purchasing in unincorporated LA County areas. Assistance amounts and terms vary by funding cycle.
- City of Los Angeles LIPA — The Low Income Purchase Assistance program provides deferred loans for eligible buyers purchasing within LA city limits. Assistance can be substantial, often covering the full down payment for qualifying borrowers.
San Gabriel Valley & Local City Programs
- Pomona First-Time Buyer Program — The City of Pomona periodically offers down payment assistance grants and deferred loans funded through CDBG and HOME allocations for income-qualified buyers.
- 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 — contact us for the latest options in your specific city.
- Habitat for Humanity Programs — San Gabriel Valley Habitat for Humanity offers homeownership programs including sweat equity and affordable mortgage assistance for qualifying families.
Tax Credits for First-Time Buyers
California first-time homebuyers may qualify for valuable tax credits that reduce their federal tax liability each year.
Mortgage Credit Certificate (MCC)
The Mortgage Credit Certificate is a federal tax credit that allows first-time homebuyers to claim a portion of their annual mortgage interest as a dollar-for-dollar tax credit — not just a deduction. In California, MCCs are issued through CalHFA and can be used alongside CalHFA first mortgage and assistance programs.
Typically, the MCC allows you to claim 15%–20% of your annual mortgage interest as a tax credit, up to $2,000 per year. The remaining mortgage interest can still be claimed as an itemized deduction. Over the life of a 30-year mortgage, an MCC can save a homeowner tens of thousands of dollars.
Potential Annual Savings
- Annual MCC tax creditUp to $2,000/yr
- Mortgage interest deductionRemaining interest
- Property tax deductionUp to $10K (SALT)
- 30-year MCC savingsUp to $60,000
How to Apply for California Homebuyer Assistance
Follow these steps to maximize your down payment assistance and secure your first home.
Check Your Eligibility
Verify that you meet the basic requirements: you have not owned a home in the past three years, you meet the income limits for your county, and you plan to live in the home as your primary residence. Most CalHFA programs require a minimum credit score of 660.
Get Pre-Approved with a CalHFA-Approved Lender
Work with a CalHFA-approved lender like NetCORE Lending™ to get pre-approved. Your loan officer will review your income, credit, and financial situation to determine which programs you qualify for and how much assistance you can receive. Pre-approval strengthens your offer when you find the right home.
Complete Homebuyer Education
All CalHFA programs require completion of a HUD-approved homebuyer education course. These courses cover budgeting, the mortgage process, home maintenance, and your rights as a homeowner. Online courses are available and typically take 6 to 8 hours to complete.
Find Your Home
Work with a real estate agent to find a home within the program’s purchase price limits. Your agent and loan officer will coordinate to ensure the property and transaction meet all program requirements. Most CalHFA programs have maximum purchase price limits that vary by county.
Apply for Down Payment Assistance
Once you are under contract, your loan officer will package your CalHFA first mortgage and down payment assistance applications together. NetCORE Lending™ handles all the paperwork and coordination with CalHFA, making the process as smooth as a standard mortgage application.
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: June 2026