Down Payment Assistance in California

What is down payment assistance in California?

California's reputation for sky-high home prices is well-earned, but that doesn't mean the door to homeownership is closed. The right assistance programs can make a real difference.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the redwood forests of the north to the deserts of the south, California homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in California or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in California

The California Housing Finance Agency (CalHFA) is the state’s housing finance agency and the central source for statewide DPA programs. CalHFA doesn't lend directly to buyers. Homebuyers apply through a CalHFA-approved participating lender who will combine the assistance with the mortgage.

All CalHFA programs share a few baseline requirements:

• Minimum credit score between 660 and 680 640
• Completion of a homebuyer education course.
• The home must be in California and used as your primary residence
• You must meet income limits

CalHFA Down Payment Assistance Programs

CalHFA offers several down payment assistance programs, which are offered as a second or subordinate loan, meaning payments on the loan are deferred until the home is sold, refinanced, or paid in full.

MyHome Assistance Program: This program provides two options for down payment or closing costs assistance, depending on the homebuyer’s first loan. For CalHFA Government Loans (FHA), the program offers a deferred-payment junior loan of up to 3.5% of the purchase price or appraised value (whichever is lower). For CalHFA Conventional Loans, the program offers a deferred-payment junior loan of up to 3% of the purchase price or appraised value (whichever is lower).

In addition to the above, MyHome Assistance includes the following requirements:

• Must be a first-time homebuyer
• Must meet CalHFA income limits
• Loan application through participating lenders only

California Dream For All Shared Appreciation Loan: This program provides down payment or closing costs assistance for first-generation homebuyers and must be combined with the Dream For All Conventional first mortgage. Eligible homebuyers may receive up to 20% not to exceed $150,000. This program requires homebuyers to register for a voucher during a specific time period. The voucher is entered into a randomized drawing. It is not first-come, first-served. When the home is sold, transferred, or the first mortgage is paid in full, the homebuyer must repay the loan, plus a share of the appreciation in the value of the home.

Requirements for this program include:

• One borrower must be a first-generation homebuyer
• One borrower must be a resident of California
• All borrowers must be first-time homebuyers
• Must meet household income eligibility requirements

CalPLUS FHA & CalPLUS Access FHA Programs: These FHA-insured first mortgage programs come with a slightly higher 30-year fixed interest rate, but can be combined for assistance. The CalPlus FHA can be combined with the CalHFA Zero Interest Program (ZIP) and the CalPlus Access FHA can be combined with MyAccess.

Zero Interest Program provides:

• Closing cost assistance
• Funds provided as a deferred payment junior loan
• Assistance of up to 3% of the first mortgage loan amount

MyAccess provides:

• Down payment and closing cost assistance
• Funds provided as a deferred payment junior loan
• Assistance of up to 2.5% of the first mortgage loan amount

CalPLUS Conventional & CalPLUS Access Conventional Programs: These conventional first mortgage programs come with a slightly higher 30 year fixed interest rate but can be combined for assistance. The CalPlus Conventional can be combined with the ZIP, and the CalPlus Access Conventional can be combined with MyAccess.

Beyond CalHFA’s statewide programs, several California cities and counties have established their own DPA programs. Many of these can be stacked with CalHFA assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

San Diego down payment assistance programs

San Diego is Southern California's coastal gem, known for near-perfect weather, miles of beaches, and a laid-back vibe that blends surf culture with a booming biotech and defense industry. Its mix of historic neighborhoods, craft breweries, and easy access to both the ocean and mountains keeps drawing buyers, even as they weigh the trade-off against some of the state's higher home prices.

City of San Diego down payment assistance includes:

The San Diego Housing Commission (SDHC) offers deferred-payment loans and homeownership grants to help low- and moderate-income first-time homebuyers purchase their first home.

SDHC First-time Homebuyer Middle-Income Program: This program provides up to $40,000 as a deferred down payment assistance loan, and a $10,000 grant for closing cost assistance. Homebuyers must be earning between 80% and 150% of San Diego’s area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development.

Program details include:

• The down payment assistance is provided as a deferred payment, 15-year term loan at 4% interest. There are no monthly payments for the first five years. After that, the principal and interest are converted into an amortized loan with fixed monthly payments for a period of 120 months.
• The closing cost grant is forgiven at the end of three years if the property remains owner-occupied.
• Purchase price limit of $1,250,000
• Property must be owner-occupied primary residence
• Homebuyer must complete pre-purchase counseling and homebuyer education
• Can only be used with a conventional, FHA, or VA first mortgage

County of San Diego down payment assistance includes:

Down Payment and Closing Cost Assistance (DCCA) Program: This first-time homebuyer program provides up to 22% of the purchase price as a deferred payment loan for down payment assistance, and a loan for closing cost assistance of 4% of the purchase price, up to $10,000. Low-income households must be at 80% or less of San Diego County AMI.

Program details include:

• The down payment assistance is provided as a deferred payment, 30-year term loan at 3% interest. There are no monthly payments. The loan is due when the buyer sells the property or wants to pay the loan in full, including principal and interest.
• Minimum credit score of 640
• Maximum purchase price of $743,000.
• Property must be owner-occupied primary residence
• Homebuyer must complete pre-purchase counseling and homebuyer education
• Can only be used with a conventional, FHA, or VA first mortgage

Permanent Local Housing Allocation Down Payment Assistance (DPA) Program: This first-time homebuyer program provides up to 17% of the purchase price or appraised value. Total down payment plus the county’s down payment assistance cannot exceed 25% of the sales price.

Program details include:

• The down payment assistance is provided as a deferred payment, 30-year term loan at 3% interest. There are no monthly payments. The loan is due when the buyer sells the property or requests to pay the loan in full, including principal and accrued interest.
• Minimum credit score of 640
• The price of the property cannot exceed the most recent media sales price for single-family homes/condominiums in San Diego County.
• Property must be owner-occupied primary residence
• Homebuyer must complete pre-purchase counseling and homebuyer education
• Can only be used with a conventional, FHA, or VA first mortgage

Los Angeles down payment assistance programs

Los Angeles is California's largest metropolitan area, known worldwide for its entertainment industry, diverse neighborhoods, and a lifestyle that stretches from beach towns to hillside views. Its year-round sunshine, booming job market in film, tech, and fashion, and endless mix of food and culture keep drawing buyers, even as they navigate some of the priciest real estate in the country. (Metros are the main city and surrounding towns, suburbs, and smaller urban areas.)

Los Angeles down payment assistance programs include:

Low Income Purchase Assistance (LIPA) Program The program offers up to $161,000 for down payment, closing costs, and acquisition. The funds are provided as a 0% interest, deferred loan. The city will share a certain percentage of the appreciation in value of the property. The loan and shared appreciation are due upon sale, title transfer, first mortgage repayment, or in 30 years as a balloon payment.

Program details include:

• Must be first-time homebuyer
• Must be U.S. citizen, lawful permanent resident, or other qualified aliens
• Minimum credit score of 660
• Must complete homebuyer education class and receive counseling by approved provider
• Homebuyer must contribute a minimum of 1% of the home price as down payment
• Home must be occupied as primary, principal residence
• Must meet income eligibility requirements
• Property must be located in the city of Los Angeles
• Maximum purchase price of $956,465

Los Angeles County Development Authority HOP80 and HOP120 Homeownership Program: These programs provide a second mortgage loan for first-time homebuyers up to $100,000 or 20% of the purchase price (whichever is less). The funds are provided as a 0% interest loan with deferred payment and shared equity. When the home is sold, title transferred, or is no longer owner-occupied, the homebuyer must repay the loan, plus a share of the appreciation.

Program details include:

• Must be first-time homebuyer
• Must be income eligible, between 80% and 120% of AMI for Los Angeles County
• Homebuyer must contribute a minimum of 1% of the home price as down payment
• Must complete homebuyer education class

Sacramento down payment assistance program

Sacramento is California's capital city, offering a more affordable alternative to the Bay Area and Southern California while still delivering big-city amenities. Its mix of historic neighborhoods, a growing farm-to-fork food scene, and easy access to both Lake Tahoe and San Francisco makes it a popular landing spot for buyers priced out of California's coastal markets.

Sacramento down payment assistance includes:

CalHome First-Time Homebuyer Mortgage Assistance Program The program provides 20% of the purchase price, up to $40,000 in down payment and mortgage assistance for income-eligible first-time buyers within the city and county of Sacramento. The funds are provided as a deferred payment 30-year loan with 3% interest.

Program details include:

• Minimum loan amount of $10,000
• Loan is due upon sale or transfer of property, when the property is no longer owner-occupied, or loan maturity date
• Can be used with FHA, conventional, and CalHFA financing
• Must be a first-time homebuyer
• Must attend homebuyer education courses
• Must reside in the home as primary residence

These are some of the many down payment assistance programs available across California. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for California down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at calhfa.ca.gov. For local programs, contact the relevant city or county housing office.
2. Find a participating lender. CalHFA programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying California property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

California down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}