California Down Payment Assistance Programs

The down payment is the single biggest obstacle for most California buyers, and it is also where the most help exists. The state and many cities and counties run programs that can cover much or all of your down payment and closing costs, often with no monthly payment while you own the home. Understanding the major programs and how they stack is the key to getting into a home sooner than you thought possible.

CalHFA: the state programs

The California Housing Finance Agency, or CalHFA, is the main source of state assistance. It does not lend directly; you work through a CalHFA-approved lender who pairs one of its first mortgages with a down-payment or closing-cost assistance loan. The 2026 lineup includes several parts that can be combined on one purchase:

• MyHome Assistance: a deferred junior loan of up to 3.5 percent of the price for FHA loans, or up to 3 percent for conventional, to help with down payment or closing costs.
• Zero Interest Program (ZIP): a zero-interest deferred loan for closing costs, paired with the CalPLUS first mortgage.
• Dream For All: a shared-appreciation loan that can reach up to 20 percent of the price, aimed at first-generation buyers. It has historically operated through a lottery or limited window, so availability comes and goes.

These are deferred loans in most cases, not grants. You repay them when you sell, refinance, or transfer the home, and Dream For All also shares in your home's future appreciation. That tradeoff is worth understanding up front, which our affordability planning covers.

Who qualifies

CalHFA assistance comes with real gates. You generally must be a first-time buyer, meaning no ownership interest in the past three years, occupy the home as your primary residence, complete a homebuyer education course, and earn under your county's income limit. Those income limits vary widely, from roughly the mid-100,000s in many counties to the mid-200,000s or higher in the most expensive ones. Credit score minimums often sit around 660 for FHA pairings and 680 for conventional.

One honest note: assistance funds are limited and program details change. The Forgivable Equity Builder program, which forgave its loan after five years, has been unfunded since 2022. It is worth confirming current availability with a lender before you count on any specific program.

Local and specialty programs

Beyond CalHFA, many cities and counties run their own down-payment programs, and some can stack on top of state assistance. Los Angeles, San Diego, Long Beach, and others have local funds, and the GSFA Platinum program offers assistance available to both first-time and repeat buyers. There are also specialty programs for teachers, school employees, veterans, and buyers in rural areas. VA and USDA loans can require zero down entirely.

The catch is that layering these correctly takes a lender who knows how to coordinate state and local funding. Not every lender is approved for every program. Our first-time buyer guide covers the process by region, and Ashlar Lending can identify which programs you qualify for and stack them.

What this means for your cash to close

Layered well, assistance can shrink your out-of-pocket cash to a small fraction of the purchase price. You still need to budget for closing costs, though many programs help there too, and to qualify for the first mortgage on your own income. But the picture is far more reachable than the sticker price suggests. The best next step is to talk with a lender who can run your county, income, and credit against the current programs, and tell you in real dollars what you would owe and when.