Few states make the down payment feel as steep as California, where home prices run far above the national norm. That is exactly why the California Housing Finance Agency (CalHFA) has built some of the most generous assistance in the country — including a shared-appreciation program that can cover up to 20% of the purchase price.
This guide covers what is actually available to first-time buyers in California in 2026 — the agency behind these programs, the loans and down payment help on offer, who qualifies, and how to apply. For the wider local picture, see our California first-time home buyer guide.
The CalHFA and its home loan programs
California’s first-time buyer programs are run by the California Housing Finance Agency (CalHFA). Like most housing finance agencies, it does not lend directly — instead it offers below-market first mortgages, bundled with down payment help, through a network of approved local lenders. Its main first-mortgage options are:
- CalHFA Conventional and CalPLUS Conventional — 30-year fixed conventional loans, with CalPLUS adding built-in closing-cost help
- CalHFA FHA and CalPLUS FHA — government-backed options with lower credit and down payment thresholds
- Dream For All Conventional — paired with the shared-appreciation assistance loan below
Most of these can be built on top of an FHA, VA, or USDA loan, or a conventional loan, depending on the product you pick — and the real value comes when you pair one with the down payment assistance below.
Down payment assistance in California
Down payment assistance is the heart of what CalHFA offers, and California gives buyers more than one way to get it. Options range from a straightforward deferred second to a shared-appreciation loan that can cover a large chunk of the price.
- MyHome Assistance Program — deferred second, up to 3.5% of the purchase price or appraised value, with no monthly payment.
- Dream For All Shared Appreciation Loan — shared-appreciation second, up to 20% of the price (capped at $150,000); repaid with a share of appreciation, lottery-based and limited funding.
- Zero Interest Program (ZIP) — deferred second, 2%–3% of the first loan for closing costs, paired with CalPLUS.
If those terms are unfamiliar, our national guide to down payment assistance explains exactly how grants, forgivable second mortgages, and deferred loans differ — and what each one means when you eventually sell or refinance.
How much help could you get?
Say you are buying a $600,000 home with a CalHFA FHA loan. The MyHome Assistance Program can provide up to 3.5% of the price — roughly $21,000 — as a deferred second with no monthly payment, often enough to cover the FHA down payment entirely. Buyers who win a spot in the lottery-based Dream For All program could receive far more, up to 20% of the price, in exchange for sharing part of the home’s future appreciation. Amounts and availability shift constantly, so treat these as illustrations and confirm current figures with CalHFA.
Who qualifies in California?
Every program sets its own rules, and they change periodically, but the common requirements in California look like this:
- Income limits. CalHFA sets income limits by county, tied to area median income.
- First-time status. Most CalHFA assistance requires first-time buyer status (no ownership in the past three years); Dream For All additionally targets first-generation buyers.
- Credit score. Typically around 640 for FHA and 660–680 for conventional, depending on the product. Our guide to credit score requirements covers what moves the needle.
- Homebuyer education. A CalHFA-approved homebuyer education course is required.
- Purchase price limits. CalHFA sales-price limits apply and vary by county.
California programs worth knowing about
Beyond the standard offerings, California aims extra help at specific buyers and places. Watch for:
- Extra Credit Teacher Home Purchase Program — extra assistance for eligible K-12 school staff
- Dream For All — aimed at first-generation homebuyers
- CalHFA VA — pairs veteran financing with CalHFA assistance
Mortgage Credit Certificates in California
CalHFA has offered a Mortgage Credit Certificate in California, though availability varies by funding round — check current status with CalHFA. A Mortgage Credit Certificate is a federal tax credit worth a percentage of the mortgage interest you pay every year for the life of the loan, and where it is available it can usually be combined with the assistance above — putting money back in your pocket each tax season.
How to apply for California assistance
- Set your budget first. Our home affordability guide helps you land on a realistic price range before you start shopping.
- Complete a homebuyer education course. Nearly every California program requires one, and it is usually free and available online.
- Find a participating lender. Not every lender originates CalHFA loans, so ask directly which CalHFA programs a lender offers and have them run your numbers against a few.
- Get pre-approved and lock in the right program for your income, credit, and target home before you make an offer.
One important note: CalHFA program funding and terms change from year to year, and some assistance rounds close when the money runs out. Always confirm current amounts and availability directly with CalHFA before you count on a specific figure. Our first-time home buyer checklist keeps the rest of your process on track.
California first-time buyer programs FAQ
Do I have to be a first-time buyer to get assistance in California?
Most CalHFA assistance requires first-time buyer status (no ownership in the past three years); Dream For All additionally targets first-generation buyers.
What credit score do I need for CalHFA programs?
Typically around 640 for FHA and 660–680 for conventional, depending on the product. Keep in mind a program’s own minimum can sit above the loan’s floor, so confirm the exact number with your lender.
Can I use California assistance with an FHA, VA, or USDA loan?
Yes. CalHFA assistance is built to layer on top of a first mortgage, and FHA, VA, and USDA loans are common partners because their own down payment requirements are already low. Your lender structures both pieces so they close together.
What is the Dream For All program in California?
Dream For All is CalHFA’s shared-appreciation down payment program. It can fund up to 20% of the purchase price (capped at $150,000) with no monthly payment; instead of interest, you repay the original amount plus a share of your home’s appreciation when you sell or refinance. It runs on a lottery-style reservation basis with limited funding windows, so confirm the current round with CalHFA before relying on it.
City guides for California
Several California metros run their own local down payment programs on top of the statewide help above. See our city guides for Los Angeles and San Diego.
More California city guides
Buying in a specific California metro? See our first-time buyer guides for Sacramento, each covering the city’s own local down payment programs.
Looking specifically for grants in California?
If you want to zero in on grant and forgivable money — the help you do not pay back — see our focused guide to first-time home buyer grants in California.