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Buy · Down Payment & Affordability

Down payment assistance in California: help with the hardest part.

The biggest barrier to buying a home in California is usually the cash upfront. Down payment assistance — often called DPA — is help that lowers that upfront cost. This page explains the main California programs, who qualifies, and how the money works, all in simple terms.

DPA is not free money in every case. Some help is a grant you may never repay. Some is a loan you pay back later. Knowing the difference is the whole game, so we will keep it clear.

This guide is for learning. Programs change, funds run out, and rules vary, so always confirm current details before you count on a program.

A California family meeting a loan officer about down payment assistance
Quick answer

Down payment assistance in California helps cover your down payment or closing costs. The main source is CalHFA (the California Housing Finance Agency), which offers programs like MyHome (a deferred loan worth about 3%–3.5% of the price) and Dream For All (a shared appreciation loan up to 20% of the price, capped at $150,000). Most programs require a CalHFA-approved lender, income limits, and a homebuyer education class.

What this means

DPA comes in a few shapes. Knowing which kind you have tells you how it must be paid back.

Deferred loan. You borrow the help and pay it back later — usually when you sell, refinance, or pay off your main loan. No monthly payment in the meantime.
Forgivable grant. If you live in the home long enough (often a few years), the help is forgiven and you owe nothing.
Shared appreciation loan. You repay the original amount plus a share of the home’s value gain when you sell or refinance.

Each type lowers what you need today. The catch is the rules for later, which is why understanding the type matters.

Step by step

How it works

1
Get pre-approved with a CalHFA-approved lender. Not every lender offers these programs. You need a pre-approval before you can reserve assistance.
2
Take a homebuyer education class. Most California DPA programs require it.
3
Check income limits. Programs cap how much you can earn, and the limit changes by county and household size.
4
Reserve the funds. Some programs, like Dream For All, use a lottery or limited window and can run out in days.
5
Find a home and close. The assistance is applied at closing, often as a second loan behind your main mortgage.

Main California DPA programs (2026)

ProgramWhat it givesHow you repay
CalHFA MyHomeAbout 3%–3.5% of the price for down payment or closing costsDeferred loan, repaid when you sell, refinance, or pay off
CalHFA Dream For AllUp to 20% of the price, max $150,000Shared appreciation loan; repay original plus a share of value gain
CalHFA ZIPHelp with closing costsDeferred loan
MCC (Mortgage Credit Certificate)A yearly federal tax credit on mortgage interestNot a loan; a tax benefit
GSFA PlatinumA grant toward down payment or closing costsOften forgivable if you stay long enough

Dream For All focuses heavily on first-generation buyers (people whose parents did not own a home). Its funding is very limited — in past years it ran out within days — so being pre-approved and ready early is key.

Requirements (at a glance)

RequirementTypical rule
First-time buyerUsually have not owned a home in 3 years
Income limitVaries by county and household size
Credit scoreOften 660+ (some allow lower with conditions)
Homebuyer educationRequired for most programs
Approved lenderMust use a CalHFA-approved lender
PropertyA home you will live in (not an investment)

Income limits are higher in expensive counties. For example, limits in the San Francisco Bay Area and Orange County are higher than in lower-cost inland counties.

Benefits

Less cash needed upfront. You can buy sooner.
Layering is allowed. You can often stack programs — for example, MyHome for the down payment plus ZIP for closing costs.
No monthly payment on most help. Deferred loans do not add to your monthly bill.
Keeps savings safe. You hold more cash for emergencies and moving costs.

Potential drawbacks (the honest part)

You repay most of it later. Deferred and shared appreciation loans must be paid back when you sell or refinance.
Shared appreciation can cost more. With Dream For All, you give up a share of your home’s value gain.
Funds run out fast. Popular programs have limited money and tight windows.
More paperwork and rules. Programs add steps, classes, and income checks.
Resale and refinance limits. Some programs affect how and when you can refinance.
Real-world California examples

What it looks like in practice

Stacking help in Sacramento
Stacking help in Sacramento

Lucia buys a $450,000 home. She uses an FHA loan with MyHome for the down payment and ZIP for closing costs. She brings very little cash to closing, but she has two deferred loans she will repay when she sells.

First-generation buyer in Los Angeles
First-generation buyer in Los Angeles

Andre’s parents never owned a home. He gets pre-approved early and is ready when Dream For All opens. He receives up to 20% of the price as a shared appreciation loan. When he sells years later, he repays the original amount plus a share of the value gain.

Forgivable grant in the Inland Empire
Forgivable grant in the Inland Empire

Dana uses a GSFA Platinum grant for part of her down payment. Because she stays in the home past the required period, the grant is forgiven and she owes nothing back.

Examples are for learning only. Program terms change, and your eligibility depends on your finances and current program rules.

Common mistakes

1Waiting for funding to open before getting pre-approved. By then it may be too late. Get pre-approved first.
2Using a lender that is not CalHFA-approved. You cannot access these programs without one.
3Skipping the education class. It is required and often the last step people remember.
4Not understanding repayment. Many people forget that deferred and shared appreciation loans must be paid back.
5Assuming you earn too much. Income limits are higher in costly counties than people expect.
6Counting on Dream For All as a sure thing. Its funding is limited and not guaranteed.
Good questions

Frequently asked questions

Sometimes. Forgivable grants can become free if you stay long enough. But most DPA is a loan you repay later when you sell or refinance.

Next steps

Get pre-approved with a CalHFA-approved lender early.

Many people miss out simply because they were not ready when funds opened. EZ Online Mortgage can help you understand which California programs may fit your income, your county, and your goals — so you are ready to move when the time comes.

Get Pre-Approved (818) 305-6704
Keep learning

This page is for education only. It is not a loan offer or a promise of approval, funding, rates, or savings. Programs change and funds are limited. Always confirm current terms. Equal Housing Opportunity · NMLS #362311 · CA DRE #01871814.

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