Key Takeaways
- California offers many programs that can lower your upfront costs and make buying more accessible, especially for first-time buyers.
- Most assistance programs require education, income limits and buying a primary residence.
- Down payment and closing cost help can significantly reduce what you pay out of pocket, but some programs require repayment or share in future home appreciation.
Buying your first home can be a real challenge, especially in a state like California where prices are often sky-high.
Luckily, the Golden State has a variety of first-time home buyer loans and grants to help those who need an extra hand. Here’s how to get started.
In this article (Skip to…)
- Home buyer programs
- First-time buyer grants
- Home buyer key stats
- Home loan options
- Buying in California’s cities
- Resources
- Mortgage rates
California first-time home buyer programs
For California home buyers, a good place to start looking for assistance is the California Housing Finance Agency (CalHFA)4. This agency offers a wide range of first-time home buyer loan programs at its own special interest rates.
Verify your home buying eligibility in CA. Start hereCalHFA Loan Program
The CalHFA Loan Program offers first-time homebuyers access to 30-year, fixed-rate FHA, conventional, VA, or USDA mortgages with the option to pair them with CalHFA’s down payment and closing cost assistance.
CalPLUS Loan Program
The CalPLUS Loan Program provides a 30-year, fixed-rate CalHFA mortgage with a slightly higher rate that can be paired with the Zero Interest Program (ZIP) for closing cost assistance.
Other California Home Loan Options
CalHFA VA Loan
A VA-insured, 30-year fixed-rate mortgage for eligible veterans and active-duty service members buying a single-family home or condo.
CalHFA USDA Loan
A 30-year fixed-rate USDA-backed mortgage paired with MyHome down payment assistance; borrowers must meet USDA income limits and purchase in an eligible rural area.
CalHFA Conventional Loan
A standard 30-year fixed-rate conventional mortgage; PMI applies if the down payment is under 20%.
CalPLUS Conventional Loan
A 30-year fixed-rate loan with a slightly higher rate but paired with MyHome and ZIP assistance to help cover down payment and closing costs.
CalVet Home Loan Program
Special home loan options exclusively for veterans, service members, and qualifying groups, designed to make home buying in California more accessible and streamlined.
The Dream For All Shared Appreciation Loan
California’s hottest down payment assistance program is back and it’s unlocking up to 20% of your home’s purchase price to help first-time buyers get in the door faster. Pair it with the Dream For All Conventional loan and suddenly your down payment or closing costs become way more manageable.
Here’s the magic: you repay the assistance plus a matching share of your home’s appreciation. So if you get 20% down, you’ll return 20% of the profit when you sell, refinance, or transfer the home.
Want the full breakdown of how it works? Read our complete guide here.
California first-time home buyer grants
The Golden State has countless down payment assistance programs (DPAs) that can provide financial help toward your down payment and often closing costs.
Some of those are local and serve specific counties or cities. But here are the details of the main statewide programs.
Let us help find the right mortgage for youCalHFA MyHome Assistance
Ideal Candidate
- A first-time buyer who needs help with upfront costs and prefers a low-payment option they can repay later.
Borrow up to 3.5% toward your down payment and closing costs (3% for conventional/VA/USDA loans). Works as a deferred-payment second mortgage — no monthly payments; repay when you sell, move, or refinance.
CalHFA Accessible Dwelling Unit (ADU) Grant Program
Ideal Candidate
- Homeowners looking to build an ADU to add space or generate rental income and needing help with upfront planning costs.
Offers up to $40,000 for ADU pre-development and non-recurring closing costs. Funds support building a new ADU on an owner-occupied property.
Pathway to Homeownership Closing Cost Assistance
Ideal Candidate
- First-time buyers from underserved communities who need help covering closing costs and are working with a C.A.R. agent.
Provides up to $10,000 in closing cost assistance. It’s a grant (not a loan) so it never needs to be repaid.
Forgivable Equity Builder Loan
Ideal Candidate
- Buyers who want down payment help now and plan to stay in the home at least five years to take advantage of full loan forgiveness.
Offers up to 10% of the purchase price as a down payment assistance loan. Entire loan is forgivable after five years of owner occupancy.
California home buyer key stats
The median home sales price in California was $ in , that , according to Redfin. California home prices continue to outpace the national average by quite a bit.
Remember that the Golden State offers plenty of assistance in the form of home buyer education, special mortgages, and down payment assistance. So eligible first-time buyers could be in line for some real help if they apply.
| Median Home Sale Price in CA1 | $ |
| Minimum Down Payment in California (3%) | $ |
| 20% Down Payment in California | $ |
| Average Credit Score in California2 | |
| Maximum California Home Buyer Grant3 | Up to 30% of home value (Silicon Valley) |
Down payment amounts are based on the state's most recently available average home sale price. "Minimum” down payment assumes 3% down on a conventional mortgage with a minimum credit score of 620.
If you're eligible for a VA loan (backed by the Department of Veterans Affairs) or a USDA loan (backed by the U.S. Department of Agriculture), you may not need any down payment at all.
Verify your home buying eligibility in CA. Start here
California first-time home buyer loans
If you’re a California first-time home buyer with a 20% down payment, you can get a conventional loan with a low interest rate. And you never have to pay for private mortgage insurance (PMI).
Of course, few first-time buyers have saved a 20% down payment. Doing so could be especially challenging in California, where 20% of the average sales price is nearly $160,000.
But the good news is that you don’t need 20% down. Not by a long shot. California home buyers can often get into a new home with as little as 3% or even 0% down using one of these low-down-payment mortgage programs:
Find the best first-time home buyer loan for you. Start here- Conventional 97: With Freddie Mac or Fannie Mae, you may qualify with a 3% down payment and 620 minimum credit score. You can usually stop paying private mortgage insurance after a few years
- FHA loan: Backed by the Federal Housing Administration, you could qualify for an FHA loan with a 3.5% down and a 580 minimum credit score. But you’re on the hook for mortgage insurance until you refinance to a different type of mortgage, move, or pay off your loan
- VA loan: Only for veterans and active-duty service members, the VA mortgage offers a zero-down-payment option. Minimum credit score varies by lender but often 620. There’s no ongoing mortgage insurance after closing. These are arguably the best mortgages available, so apply if you’re eligible
- USDA loan: For those on low-to-moderate incomes buying in designated rural areas. Zero down payment required. Credit score requirements vary by lender but often 640. Low mortgage insurance rates
- CalHFA mortgage programs: Government and conventional home loans offered via the California Housing Finance Agency. Offers 30-year fixed-rate first mortgages along with home buyer assistance
Note that government loan programs (including FHA, VA, and USDA home loans) require you to buy a primary residence. That means you can’t use these loans for a vacation home or investment property.
In addition, most programs let you use gifted money or down payment assistance (DPA) to cover your down payment and closing costs. Depending on the mortgage loan you choose, you could potentially get into your new house with minimal cash out of pocket.
If you’re unsure which program to choose for your first mortgage, your lender or real estate agent can help you find the right match based on your finances and home buying goals.
Buying a home in California’s major cities
California’s big cities are some of the most costly in the nation. So home buyers in these areas will want to know what to expect.
Verify your home buying eligibility in CA. Start hereLos Angeles first-time home buyers
The median listing price in Los Angeles was $ in , according to Realtor.com. That .
If you want to buy a home at that median price, your down payment options might fall between:
- $ for 3% down payment
- $ for 20% down payment
The City of Los Angeles Housing and Community Investment Department (HCIDLA) has a couple of programs that can help first-time buyers. These include the Low Income Purchase Assistance (LIPA) program and the Mortgage Credit Certificate (MCC).
The LIPA program can provide deferred payment loans of up to $140,000 to low-income borrowers to be applied to the down payment and closing costs. These loans have no monthly payments and are repayable when you move or refinance.
There are similar programs for those buying outside the LA city limits run by the Los Angeles County Development Authority.
San Diego first-time home buyers
The median home listing price in San Diego was $ in , , according to Realtor.com.
If you want to buy a home at that median price, your down payment options might include:
- $ for 3% down payment
- $ for 20% down payment
The San Diego Housing Commission (SDHC) First-Time Homebuyer Program offers access to several types of help, including deferred loans, homeownership grants, and down payment and closing cost assistance.
Via the SDHC, San Diego first-time home buyers might be eligible for down payment or closing cost assistance up to $10,000 or 4% of the home purchase price, whichever is less. The city even offers a deferred-payment assistance loan of up to 22% of the purchase price.
Let us help find the right mortgage for your first home in San Diego. Start hereSan Jose first-time home buyers
The median home listing price in San Jose was $ in , according to Realtor.com. That .
If you want to buy a home at that median price, your down payment options could range between:
- $ for 3% down payment
- $ for 20% down payment
Housing Trust Silicon Valley has a program called Empower Homebuyers SCC, which can lend you up to 30% of your next home’s appraised value (with strings).
This is another deferred loan, meaning you make no monthly payments but have to pay the whole amount back “when the loan matures, you decide to sell, or you refinance your mortgage.” This is also an equity-sharing program, meaning the Housing Trust will be entitled to a share of the equity you build in your home.
The website explains:
“You will share your appreciation in equal proportion to the amount you borrowed. This means if your loan was 30% of the purchase price, you will share 30% of the appreciation and the rest of the equity that builds up on your home over time is yours.”
“For instance, if you buy a house for $600,000 and use Empower to borrow 20% ($120,000) for the down payment, and the home is later sold for $800,000, you would owe a total of $160,000 (the original loan amount of $120,000, plus $40,000/20% of the $200,000 appreciation).”
Of course, you have to have 3% of the purchase price saved to benefit. But then you can put down 20%, which should get you a low mortgage rate and save you from paying any form of mortgage insurance.
If your income is too high for that program, the Homebuyer Empowerment Loan Program (HELP) is an alternative, also run by Housing Trust Silicon Valley.
Where to find home buying help in California
All the organizations we’ve listed above should provide advice freely to any first-time home buyer in the state of California.
In addition to our selection, the U.S. Department of Housing and Urban Development (HUD) provides access to a few lists of statewide, regional, and local resources.
Verify your home buying eligibility in CA. Start hereStatewide and regional CA home buying programs
- California Housing Finance Agency (CalHFA)
- CalVet Home Loans
- Community Contacts
- HUD approved housing counseling agencies
- State of California Housing and Community Development
- The Dream For All Shared Appreciation Loan
California home buying programs by city and county
What are today’s mortgage rates?
You can see today’s live mortgage rates here.
When you’re ready to start the home buying process, experiment with a mortgage calculator to see how down payment and interest rates will affect your mortgage payment. Then make sure you get personalized rate quotes from at least three to five mortgage lenders.
Don’t just look at advertised rates online; actually apply for preapproval and compare the interest rates and fees you’re offered. Because that’s the only way to know you’re getting the best deal possible on your new home loan.
Time to make a move? Let us find the right mortgage for you1 Source: Redfin California Housing Market Report
2 Source: Experian 2022 study of 2021 and 2020 data
3 Based on a review of the state's available DPA grants at the time this was written
