First-Time Home Buyer Programs in California

California Housing Finance Agency (CalHFA) Programs:

CalHFA Conventional Loan Program:

Eligibility: Available to first-time homebuyers (no homeownership in the past three years) purchasing in California.
Offerings: Provides a 30-year fixed-rate mortgage with competitive rates, combinable with down payment assistance; options include Fannie Mae HFA Preferred or Freddie Mac HFA Advantage.
Requirements:

• Income must not exceed county-specific limits (e.g., $176,600 in Los Angeles County as of 2025).
• Minimum credit score of 660 (or 680 for manufactured homes).
• Debt-to-income ratio typically capped at 45%.
• Completion of a homebuyer education course is mandatory.

MyHome Assistance Program:

Benefits: Offers up to 3.5% of the purchase price or appraised value (whichever is less) as a deferred-payment junior loan for down payment or closing costs; combinable with CalHFA first mortgages.
Eligibility: Must be a first-time homebuyer using a CalHFA first mortgage; income limits apply.

CalPLUS with ZIP (Zero Interest Program):

Description: Pairs a CalPLUS first mortgage (slightly higher rate) with a forgivable Zero Interest Program second loan of up to 4% of the first mortgage amount for closing costs; ZIP loan has no interest and is deferred until sale or refinance.
Requirements: First-time homebuyer status and adherence to CalHFA income and purchase price limits (e.g., $891,000 in high-cost areas).

Local Programs:

Los Angeles

Low Income Purchase Assistance (LIPA) Program: Offers up to $150,000 or 20% of the purchase price as a deferred second loan (0% interest, due on sale) for first-time buyers earning up to 80% of area median income in Los Angeles city limits.

San Diego

San Diego Housing Commission First-Time Homebuyer Program: Provides up to 4% of the purchase price (max $25,000) as a deferred loan for down payment/closing costs; income must not exceed 120% AMI, and property must be within San Diego city limits.

San Francisco

Downpayment Assistance Loan Program (DALP): Offers up to $500,000 as a silent second loan (no payments, due on sale) for first-time buyers earning up to 200% AMI; prioritizes educators, veterans, and city employees.

Additional Information:

• CalHFA School Teacher and Employee Assistance Program: Provides up to 4% of the purchase price as a deferred loan for down payment/closing costs for educators and school staff buying their first home; income limits apply.
• USDA and VA Loans: Zero-down payment options for rural areas (USDA) or veterans/active military (VA).
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).