Last reviewed by Ken Clark Jr., Certified Mortgage Advisor, NMLS #225375, on September 21, 2026.
I am Ken Clark Jr., and I have spent 28 years walking California buyers through the same wall you are probably staring at right now: the down payment. In a state where a starter home routinely lists at $525,000 or $650,000, the idea of scraping together 3% or 3.5% in cash, plus closing costs, plus reserves, feels impossible for a lot of hardworking people who otherwise qualify. That is precisely the problem CalHFA MyHome was built to solve, and for buyers who fit inside the county income limits it can cover most or all of your down payment as a silent second with no monthly payment. In this guide I will walk you through how MyHome actually works in 2026, what the numbers look like on realistic California purchase prices, the one legitimate DPA stack Sacramento buyers can use, and the specific questions I hear at almost every consultation. If you want a shortcut to see which programs you may qualify for based on your income and location, run our free DPA Finder or book a discovery call and I will map it for you personally.
CalHFA MyHome is a subordinate ("silent second") mortgage that can provide up to 3.5% of the purchase price when paired with a CalHFA FHA first mortgage, or up to 3% of the purchase price when paired with a CalHFA conventional first mortgage. The money can be applied to down payment, closing costs, or both, at your discretion within program guidelines. Because it sits behind the first mortgage as a deferred-payment second, you pay nothing on it month to month. It does not show up on your monthly budget the way a HELOC or a second lien with a monthly payment would.
MyHome only pairs with a matched CalHFA first mortgage, either the CalHFA FHA or the CalHFA Conventional (CalPLUS Conv). It does not layer with a non-CalHFA first mortgage, and outside the one Sacramento-specific structure covered further down, it does not stack with GSFA, Chenoa, NHF, MyAccess, or other private DPA programs. Being clear about that up front saves buyers a lot of misplaced hope. If you want to compare MyHome side-by-side with the biggest private alternative, I break both down in my CalHFA vs GSFA guide.
The silent second is the piece that trips buyers up most, so I want to spend real time on it. Here is what "silent" and "deferred" actually mean in practice:
To translate the percentages into real California numbers, here is what 3% and 3.5% look like at prices Sacramento buyers actually see:
For most first-time buyers with limited savings, that is the difference between "someday" and "this year." For a broader tour of the Sacramento DPA landscape, see my Sacramento DPA guide and downloadable Sacramento DPA cheat sheet.
The eligibility rules are relatively straightforward, but every line matters:
If you are just starting to think about qualifying, my first-time buyer hub and buying power calculator are the fastest ways to see where you stand.
The FHA path is what I recommend most often for buyers with credit scores in the 640 to 720 range or with tighter debt-to-income. The CalHFA FHA first mortgage is a fixed-rate 30-year loan at 3.5% down. MyHome layers in as the silent second and can cover that entire 3.5% down payment. You are then responsible for closing costs and prepaid items, which can often be offset by seller credits (subject to seller cooperation and program limits). Standard FHA upfront and monthly mortgage insurance applies. If you want the FHA-specific playbook, I go deeper in FHA with DPA in California and my main FHA loans page.
The conventional path is a fixed-rate 30-year first at 3% down under the CalPLUS Conv structure, with MyHome as the silent second covering that 3%. Private mortgage insurance applies while your loan-to-value stays above 80%, and it may be removed later once you reach 20% equity through amortization or appreciation (subject to lender and investor rules). This path tends to fit buyers with 700+ scores who want the option to drop PMI down the road rather than carry FHA mortgage insurance for the life of the loan.
Note on 2026 program mechanics: MyHome as currently structured is designed to pair with CalHFA FHA or CalHFA Conventional first mortgages. Veterans with VA entitlement almost always come out ahead using their VA benefit directly, which requires no down payment and no monthly mortgage insurance. If you are a veteran, start on my VA loans page and we will figure out whether a straight VA loan or a CalHFA/DPA structure is the smarter play for your specific scenario.
CalHFA publishes a county-specific household income limit each year. The 2026 limits took effect on 06.30.2026 and apply to all CalHFA first mortgages and subordinate mortgages, including MyHome, except the Dream For All Shared Appreciation Loan, which has its own separate limits.
Selected 2026 CalHFA county income limits (verify against the official PDF before relying on them):
Limits update each year, so always verify the current limit for your county before assuming eligibility. Full list: CalHFA 2026 Government & Conventional Income Limits (PDF). If your county is not listed above, that PDF is the source of truth.
Here is where Sacramento buyers have a genuine advantage that most California cities do not. The Sacramento Housing and Redevelopment Agency (SHRA) administers two down payment assistance programs, CalHome and PLHA (Permanent Local Housing Allocation), that can be layered underneath a CalHFA first mortgage plus MyHome for eligible Sacramento-area buyers. This is the one documented California stack that pairs cleanly with CalHFA. Nothing else does.
The SHRA PLHA program in particular provides up to $50,000 in assistance at 1% simple interest, deferred for the 30-year term (paid at sale, refinance, or payoff, subject to SHRA program guidelines in effect at closing). Household income limits apply: for 2026, roughly $72,050 for a 1-person household up to $119,400 for a 6-person household. Always verify the exact figure for your household size with SHRA before pricing a scenario.
Here is the important operational detail: not every mortgage lender is approved to originate SHRA loans, and not every CalHFA-approved lender is also SHRA-approved. I am one of a very small handful of lenders in the Sacramento region who is approved for both CalHFA and SHRA, which is why buyers routinely find their way to my calendar after being told elsewhere that "we don't do that program." If you are buying in the City of Sacramento or the unincorporated county, this pairing may materially reduce what you bring to closing. Reach out through my Sacramento mortgage advisor page or the Sacramento first-time homebuyer programs guide for the full walk-through.
Numbers do the talking. Both examples use illustrative rates and PMI/MI assumptions for demonstration only and are not a quote. Your actual figures depend on credit, income, DTI, property, and current market pricing.
Elk Grove buyers specifically should also look at the Elk Grove first-time homebuyer page for local pricing context.
MyHome is not the answer for every buyer, but when it fits, it fits well. Here is how I frame it at consultations:
MyHome tends to fit best for:
You may be better served elsewhere if:
The right way to sort this is to run the DPA Finder and then confirm the best-fit stack on a call.
Qualification is based on income at the time of application and approval under the program rules in effect. Once you close, later income growth does not retroactively disqualify you, and it does not accelerate repayment. The silent second still sits until sale, refinance, or payoff of the first.
Refinancing the CalHFA first mortgage is one of the trigger events that requires the MyHome (and SHRA, if applicable) balance to be paid off. That does not mean refinancing is off the table, but you would need enough equity, cash, or new financing to satisfy the deferred balance at closing. This is a real planning consideration and something we always model when we look at your scenario, especially if rates drop meaningfully.
Yes. Even though there is no monthly payment, the MyHome and any SHRA lien are recorded liens against title and will appear on your credit and title report. When you later apply for another mortgage, underwriters will see the balance owed and factor it into your equity and liability picture. It does not have a monthly payment to add to your DTI while the CalHFA first is in place, but it is not invisible.
Yes, subject to CalHFA program guidelines and the condo project meeting warrantability and approval requirements. Not every condo project qualifies, so we check that early. Manufactured homes on permanent foundations may also be eligible under specific criteria.
Job loss does not automatically accelerate MyHome or SHRA. You continue to have no monthly payment on the silent second. What matters day to day is your ability to keep the CalHFA first mortgage current. If you find yourself in hardship, call your servicer and your loan officer immediately, because there are loss mitigation options for CalHFA-serviced loans that most borrowers do not know about.
Yes, gifts from acceptable donors are allowed under CalHFA program guidelines and can be layered with MyHome for closing costs, reserves, and any remaining out-of-pocket. Documentation rules apply.
That is the question I like best, because it is the number that decides whether you can actually move this year. On a well-structured CalHFA FHA + MyHome + SHRA PLHA scenario in Sacramento, cash to close for a qualifying buyer may come in dramatically lower than a traditional 5% down purchase. On a CalHFA Conventional + MyHome scenario without SHRA, expect to bring closing costs and prepaids unless seller credits fill the gap. I will build you an actual cash-to-close estimate on a call, no guesswork.
MyHome is originated only through a CalHFA-approved lender. The lender writes both the CalHFA first mortgage and the MyHome second at the same time, submits the file for CalHFA program compliance review, and closes both liens simultaneously. Add SHRA on top and you are coordinating three moving pieces, which is where lender experience really matters.
My recommended path:
You can also visit my Sacramento mortgage advisor page to see the full range of programs I originate locally.
Common questions on this topic, answered by Ken Clark Jr., Certified Mortgage Advisor.
MyHome covers down payment, closing costs, or both, up to 3.5% of purchase price when paired with FHA, or 3% when paired with conventional. It's a deferred-payment subordinate (second) loan with no monthly payment.
When the home is sold, the first mortgage is refinanced, or the loan reaches full payoff. There is no monthly payment for as long as you own the home and the first mortgage remains active.
CalHFA MyHome is designed to work as a complete standalone solution with a matched CalHFA first mortgage, which is one of the reasons it can deliver such attractive pricing for income-eligible buyers. For Sacramento buyers who qualify, one CalHFA-approved combination is documented: pairing MyHome with SHRA CalHome or PLHA as a second, subject to SHRA and lender approval. Outside of that Sacramento-specific structure, the strategy is picking the right single program for your income, credit, and property. Seller credits are a separate item negotiated with the seller and can often be used alongside a DPA program within program guidelines.
660 minimum on conventional CalHFA, 640 minimum on FHA CalHFA. Higher scores get better first-mortgage pricing but the MyHome rules are the same.
CalHFA sets a household income cap by county. The 2026 Sacramento County limit is $245,000, effective 06.30.2026 per CalHFA's official 2026 Income Limits PDF. Bay Area counties (Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara) are $322,000 to $325,000. Los Angeles County is $214,000. San Diego is $259,000. Orange is $274,000. The limit applies to all CalHFA first mortgages and subordinate mortgages including MyHome, except Dream For All Shared Appreciation Loan which has its own limits.
Yes. CalHFA requires an approved homebuyer education course before closing. Many are available online and free.
Schedule a free discovery call with Ken Clark Jr. and get clarity on your buying power, programs, and next steps.
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Certified Mortgage Advisor and Branch Manager at PRMG Mortgage (NMLS #75243). 28 years in mortgage lending. Specializes in FHA, VA, conventional, DPA, jumbo, Non-QM, renovation, and construction financing for buyers and investors in Sacramento, New Jersey, and nationwide. PRMG is licensed in 49 states, excluding New York. Three-time Gold Award winner for Highly Reviewed Mortgage Team in Sacramento (2023, 2024, 2025). NMLS #225375.
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Source materials are publicly available agency and government resources. Program availability and guidelines may change. Always verify current guidelines with the agency or with Ken Clark Jr. before relying on them for a transaction.