California has the largest down payment assistance apparatus in the country, and also the most misreported. The state’s main program is described as “0% deferred assistance” on site after site. It is not — it accrues interest. And the headline program everyone asks about, Dream For All, is not open.
Here is what California actually offers a first-time buyer in 2026, structured honestly.
The one thing to understand first
Almost all California state assistance comes from CalHFA and takes the form of a subordinate loan — a second mortgage recorded against your home. None of CalHFA’s current programs are grants, and none are forgivable. Every dollar comes back at some point.
That is not a reason to avoid them. Deferred money with no monthly payment is genuinely useful when you cannot cover a down payment. But you should go in knowing you are borrowing, not receiving.
CalHFA MyHome Assistance Program
The workhorse. MyHome is the assistance most California first-time buyers actually use.
- Amount: the lesser of 3.5% of the purchase price or appraised value with a CalHFA FHA or other government first mortgage, or 3.0% with a conventional, USDA or VA first.
- No dollar cap. The old $15,000 ceiling was eliminated, so on an $600,000 purchase the 3.5% tier is $21,000.
- Structure — read carefully: a deferred-payment simple-interest subordinate loan. Payments are deferred for the life of your first mortgage, but interest accrues at 1% simple and is added to what you owe.
- Due on: transfer of title, sale, refinance, payoff of the first mortgage, or recording of a notice of default.
CalHFA’s own handbook language is “a deferred payment, simple interest rate subordinate loan.” If a lender or a blog tells you MyHome is 0%, they are wrong. On $20,000 held for ten years, that 1% simple interest adds roughly $2,000 to your payoff. Not catastrophic — but you should know it is there.
ZIP and MyAccess — the two smaller companions
ZIP (Zero Interest Program)
3% of the first mortgage amount, as a zero-interest deferred junior loan. The critical restriction: ZIP funds may be used only for closing costs and prepaids — not for your down payment, and not to pay off debt. Available only with a CalPLUS first mortgage. There is a $50 fee.
MyAccess
2.5% of the first mortgage amount, as a deferred junior loan, and unlike ZIP it can be applied to your down payment as well as closing costs (still not to debt payoff). Available only with CalPLUS Access. There is a $250 fee. CalHFA markets it as zero-interest, though the explicit rate is not stated as plainly in its FAQ as MyHome’s is — worth confirming with your lender.
The practical read: if your problem is closing costs, ZIP. If it is the down payment itself, MyHome or MyAccess.
Dream For All — closed, and how it actually works
This is the program people mean when they ask about California help, and the honest answer is that you cannot apply right now.
- Amount: up to 20% of the purchase price, capped at $150,000.
- Structure: shared appreciation. You repay the original principal plus 20% of your home’s appreciation when you sell, transfer or pay off the first mortgage. That share drops to 15% for buyers at or below 80% of area median income.
- Status: the 2026 round ran as a random-selection lottery, open only from February 24 to March 16, 2026, with roughly $150–200 million for about 2,000 households. That window is closed. At least 10% of funds were reserved for Qualified Census Tracts.
- First-generation requirement: at least one borrower must be a first-generation buyer, meaning their parents did not own a home. All borrowers must also be first-time buyers.
- Dream For All uses its own income limits, higher than standard CalHFA limits — roughly $168,000 in Los Angeles and $309,000 in Santa Clara.
A future round needs a new state appropriation. If someone offers to “get you into Dream For All” today, be skeptical. And understand the trade even if a round reopens: on a $700,000 home that appreciates to $900,000, a 20% appreciation share means repaying the original assistance plus $40,000.
Income limits, price limits and credit
Income limits (standard programs, effective June 30, 2026)
California is unusual here — CalHFA uses a single income figure per county that is not adjusted for household size. Representative caps: Los Angeles $214,000 · San Diego $259,000 · Santa Clara $325,000 · Sacramento $245,000 · Riverside $210,000 · Fresno $192,000.
Sales price limits
There are none. CalHFA eliminated sales price limits, and its conventional FAQ confirms it. This is a meaningful advantage over most states, where a price cap is often the binding constraint.
Credit and education
Minimum 640 for government loans (660 for manual underwriting and HUD Section 184). Conventional requires 680, or 660 for lower-income borrowers. Maximum debt-to-income is 45%, with 50% allowed on some variants. Homebuyer education is required — one occupying first-time borrower per transaction must complete it, either through eHome online for about $100 or with a HUD-approved counseling agency.
How to think about stacking
A typical California first-time buyer package looks like a CalHFA first mortgage plus MyHome for the down payment, and possibly ZIP or MyAccess on top depending on which CalPLUS product you use. Local city and county programs can layer on further — many California municipalities run their own assistance, and those are often where the genuinely forgivable money lives.
- Check your county income cap first. Because CalHFA does not adjust for household size, a large family in a lower-cap county can be squeezed unexpectedly.
- Complete homebuyer education early — it is required and takes time to schedule.
- Ask your lender to quote the MyHome payoff at year seven and year ten, including accrued interest, so the 1% is visible rather than theoretical.
- Search your city and county programs separately. State assistance is all repayable; local programs are where forgivable loans and occasional true grants show up.
- Do not delay a purchase waiting on Dream For All. It requires a new appropriation and a lottery win.
Frequently asked questions
Is CalHFA MyHome assistance interest-free?
No. Despite being widely described as 0% deferred assistance, MyHome is a deferred simple-interest subordinate loan that accrues 1% simple interest. The accrued interest is added to your payoff when you sell, refinance or pay off the first mortgage.
Does California offer down payment grants?
Not at the state level. Every current CalHFA assistance product is a subordinate loan that is repaid — none are grants and none are forgivable. True grants and forgivable loans in California generally come from city and county programs, so search locally as well.
Can I apply for Dream For All right now?
No. The 2026 round was a random-selection lottery open only from February 24 to March 16, 2026, and it is closed. A future round requires a new state appropriation. The 2026 round also required at least one borrower to be a first-generation buyer.
Is there a maximum home price for CalHFA programs?
No. CalHFA eliminated sales price limits, and its conventional program FAQ confirms there are none. Your constraint is the county income cap and what you can qualify to borrow, not a price ceiling.
What are CalHFA income limits?
They are set per county and, unusually, are not adjusted for household size. As of June 30, 2026 representative caps include Los Angeles $214,000, San Diego $259,000, Santa Clara $325,000, Sacramento $245,000, Riverside $210,000 and Fresno $192,000.
What is the difference between ZIP and MyAccess?
ZIP provides 3% of the first mortgage amount but can only be used for closing costs and prepaids, not the down payment. MyAccess provides 2.5% and can be applied to the down payment as well as closing costs. Neither may be used to pay off debt.