“First-time home buyer grants in California” is one of the most-searched phrases in the state — and one of the most misunderstood. The reality is more nuanced than the ads suggest, but there is real help available.
This guide covers what actually counts as grant money for first-time buyers in California in 2026 — the help that does not have to be repaid, the truth about the federal grant everyone asks about, and how to find and qualify for it.
Are there really first-time home buyer grants in California?
Here is the honest answer most sites skip: a true grant is money you never repay, but the majority of what gets marketed as a “first-time home buyer grant” is actually a forgivable loan — a second mortgage that is written off over time as long as you stay in the home. The practical difference is small if you plan to stay put, but it matters if you might sell or refinance early. In California specifically, the statewide assistance is unusually large but comes almost entirely as deferred and shared-appreciation loans rather than outright grants — so the closest thing to true grant money often comes from city programs.
For the full difference between grants, forgivable seconds, and deferred loans, our national guide to down payment assistance breaks it down.
California grant and forgivable-money programs
California’s biggest assistance is large but structured as loans; here is what is closest to grant money, from statewide options to the sizable city programs:
- CalHFA MyHome Assistance — a deferred second of up to 3.5% of the price — technically a loan, not a grant, but it requires no payments until you sell or refinance, so it works like free money while you own
- Dream For All Shared Appreciation Loan — up to 20% of the price (capped at $150,000) with no monthly payment; repaid with a share of your home’s appreciation, and awarded by lottery
- City programs (the closest to true grants) — Los Angeles (LIPA and MIPA silent seconds up to $161,000), San Diego, and Sacramento run large local assistance — often the best source of grant-like money in California
This page focuses on the no-repay and forgivable money. For the full menu — including deferred loans, below-market mortgages, and the Mortgage Credit Certificate — see our complete guide to California first-time home buyer programs.
The $25,000 first-time buyer grant — is it real?
You have probably seen ads for a “$25,000 first-time home buyer grant” or a “$15,000 first-time buyer tax credit.” Here is the truth as of 2026: both come from proposed federal bills (the Downpayment Toward Equity Act and the First-Time Homebuyer Tax Credit Act) that have not become law. No one can give you that $25,000 federal grant today, in California or anywhere else, because it does not exist yet — so be cautious with any site or “lender” that promises it. We track the real status on our explainer of the $25,000 first-time home buyer grant. The good news: the California programs above are real, available now, and often just as valuable.
How to qualify for a grant in California
Grant and forgivable programs in California share a familiar set of rules:
- Income limits. CalHFA sets income limits by county, and city programs typically cap at 80–120% of area median income.
- First-time status. Most California grant and forgivable programs require first-time buyer status, meaning no ownership in the past three years (Dream For All also targets first-generation buyers).
- Homebuyer education. Nearly every grant program requires a short course, usually free and often online.
- A participating lender. Grants are delivered through approved lenders, not the agency directly, so ask which programs a lender offers — and check our guide to credit score requirements to be sure you qualify for the underlying loan.
- Primary residence. The home must be the one you live in, not an investment property.
How to find down payment grants in California
Because California’s statewide help is mostly deferred loans, the largest grant-like money is frequently local — so start with a CalHFA-approved lender and your city or county housing agency together.
Several California cities also run their own grant and forgivable programs on top of the state help — see our city guides for Los Angeles, San Diego, and Sacramento.
And before you count on any figure, remember that grant funding runs in cycles and can be exhausted, so always confirm current availability with the program. Our first-time home buyer checklist keeps the rest of your purchase on track.
California first-time buyer grants FAQ
Do first-time home buyer grants in California have to be repaid?
Usually, yes — in California most statewide help (like CalHFA MyHome) is a deferred loan you repay when you sell or refinance, not an outright grant. True grants are rarer and usually come from city programs. Always confirm the structure of a specific program before assuming it is free money.
Is there a $25,000 grant for first-time buyers in California?
Not currently. The $25,000 figure comes from a proposed federal bill (the Downpayment Toward Equity Act) that has not become law, so it is not available in California or any state today. What is available are California’s real grant and forgivable programs described above, plus the statewide options in our California programs guide.
Who qualifies for down payment grants in California?
Most California grant and forgivable programs require first-time buyer status, meaning no ownership in the past three years (Dream For All also targets first-generation buyers). CalHFA sets income limits by county, and city programs typically cap at 80–120% of area median income. You will also complete a homebuyer education course and use a participating lender.
Does California have a true first-time home buyer grant?
Statewide, not really — CalHFA’s help comes as deferred loans (MyHome) or a shared-appreciation loan (Dream For All), both repaid when you sell or refinance. The closest thing to genuine grant money in California is usually local: cities like Los Angeles, San Diego, and Sacramento run large assistance programs, some structured as forgivable or silent seconds. Check both your city program and CalHFA with a participating lender.