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Loan Options · By Use-Case

First-Time Buyer Loan Programs in California

First-time buyers in California have more loan choices than they often realize. This page is a simple menu of the programs that fit first-time buyers, with the pros of each and links to the full details. The goal is to help you find the right starting point, in plain language.

If you are not sure which loan fits you, start here. Let's walk through the main options.

A happy family outside their first home bought with a first-time buyer program
Quick answer

First-time buyers in California can choose from conventional loans (3% down), FHA loans (3.5% down), VA loans (0% down for eligible veterans), and USDA loans (0% down in eligible areas). On top of these, CalHFA programs like MyHome and Dream For All can help with the down payment or closing costs. The best program depends on your credit, savings, and where you are buying.

What this means

"First-time buyer" usually means you have not owned a home in the last three years. Many programs reward first-time buyers with low down payments and assistance.

There are two layers to consider:

You combine a loan with assistance to build the package that fits you. See Down Payment Assistance (DPA).

The loan itself (conventional, FHA, VA, USDA).
Assistance programs that lower your upfront cash (CalHFA and others).

The main loan programs

ProgramDown paymentBest forDetails
Conventional (3% down)3%Strong credit; remove PMI laterConventional
FHA3.5%Flexible credit, smaller savingsFHA
VA0%Eligible veteransVA
USDA0%Eligible rural/suburban areasUSDA

Assistance programs (California)

ProgramWhat it offers
CalHFA MyHomeA deferred loan (~3%–3.5%) for down payment or closing costs
CalHFA Dream For AllShared appreciation loan up to 20% (max $150,000), first-generation focus
CalHFA ZIPHelp with closing costs
MCC (Mortgage Credit Certificate)A yearly federal tax credit on mortgage interest

These have income limits and require a CalHFA-approved lender and a homebuyer class. Funds can run out fast. See Down Payment Assistance (DPA).

Step by step

How to choose (step by step)

1
Check your credit. Below 620? FHA may fit. 620+? Compare conventional too.
2
Check your savings. Smaller savings may favor FHA or assistance.
3
Check eligibility. Veterans → VA. Eligible area → USDA.
4
Look at assistance. CalHFA can lower your cash.
5
Compare the total cost. Including mortgage insurance over time.
6
Get pre-approved. With a lender who offers these programs.

Requirements (at a glance)

ItemTypical first-time buyer rule
First-time statusOften no home owned in 3 years (for assistance)
Credit score~580+ (FHA), ~620+ (conventional)
Down payment0%–3.5% depending on the loan
Homebuyer classRequired for most assistance programs

Benefits

Many choices. A program for nearly every situation.
Low or no down payment. As little as 0%–3.5%.
Assistance available. CalHFA and others can help.
Stackable. Combine a loan with assistance.
PMI can be removed on conventional loans later. See Low-Down-Payment Options.

Potential drawbacks (the honest part)

Mortgage insurance. Common with low down payments.
Assistance has limits. Income caps and limited funds.
More steps. Programs add classes and paperwork.
Comparison needed. The best choice depends on your numbers.
Real-world California examples

What it looks like in practice

Example 1 — FHA plus assistance in Fresno.
Example 1 — FHA plus assistance in Fresno.

Marcus has a 600 score. He uses an FHA loan with CalHFA help for his down payment and closing costs.

Example 2 — Conventional 3% in Sacramento.
Example 2 — Conventional 3% in Sacramento.

Maria has a 740 score. She chooses a 3%-down conventional loan, planning to remove PMI later.

Example 3 — VA zero-down in San Diego.
Example 3 — VA zero-down in San Diego.

A veteran uses a VA loan with no down payment and no PMI. See VA.

Examples are for learning only. Your best program depends on your situation.

Common mistakes

1Assuming you need 20% down. Most first-time buyers put down far less.
2Picking a loan without comparing. Compare FHA and conventional.
3Skipping assistance. You may qualify for real help.
4Waiting too long for assistance funds. Get pre-approved early.
5Ignoring long-term insurance costs. Factor them in.
6Using a lender that lacks these programs. Choose one that offers CalHFA.
Good questions

Frequently asked questions

It depends, but common choices are conventional (3% down), FHA (3.5%), VA (0%), and USDA (0%).

Next steps

Build the right first-time buyer package

You have many first-time buyer options in California. The smart move is to compare loans and assistance together to build the right package. EZ Online Mortgage can match you to the first-time buyer programs that fit your credit, savings, and county.

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, rates, or terms. Programs have limits, and qualification depends on your individual circumstances. Equal Housing Opportunity · NMLS #362311 · CA DRE #01871814.

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