Last reviewed by Ken Clark Jr., Certified Mortgage Advisor, NMLS #225375, on May 17, 2026.
The five programs we use most, what each one actually does, who qualifies, and how to layer them.
California offers many down payment assistance options, but buyers often miss them because they do not know what is available or they are not guided through the program details early enough. Here are the five most useful programs as of 2026, in plain English.
The workhorse program. Provides up to 3% of the purchase price (or appraised value, whichever is less) toward your down payment or closing costs. Layers on top of FHA, VA, USDA, or conventional loans. Income limits vary by county. Requires a CalHFA-approved lender, which we are.
When this program is funded, it provides up to 10% of the purchase price as a fully forgivable second loan. After 5 years of owner-occupancy, the loan is forgiven entirely. This is one of the most powerful first-time buyer programs in the country, but funding rounds open and close, so timing matters.
The state contributes a portion of the down payment in exchange for a percentage of the future appreciation when you sell or refinance. Different from a traditional second loan, there's no monthly payment, but you owe a share of upside back at the end. Best fit for buyers who plan to stay long term.
A non-state DPA program with broader income limits and faster turn times than CalHFA. Provides up to 5% in DPA grants or repayable seconds. Great option for buyers slightly above CalHFA income limits.
Sacramento HCD, Contra Costa, Sonoma, Riverside, San Diego, and many other counties operate their own first-time buyer programs. These often layer on top of state-level programs for stacked benefit.
Income, county, credit score, first-time buyer status, and program funding availability all factor in. The fastest way to see what fits is the DPA Finder quiz, about 60 seconds, no SSN required.
Common questions on this topic, answered by Ken Clark Jr., Certified Mortgage Advisor.
California down payment assistance (DPA) is a set of state, county, and lender-funded programs that help eligible buyers cover all or part of their down payment and closing costs. Top California DPA programs include CalHFA MyHome, GSFA Platinum, Chenoa Fund, and county-specific programs through agencies like Sacramento HCD.
It depends on the program. CalHFA MyHome is a deferred-payment second mortgage repaid at sale, refinance, or payoff. The Forgivable Equity Builder Loan is forgiven over 5 years if the borrower stays in the home. GSFA Platinum grants up to 5 percent are sometimes non-repayable. Always verify current terms with your loan officer.
Yes, in many cases. CalHFA programs can be layered with the Mortgage Credit Certificate (MCC) and with county or city DPA programs. Stacking depends on lender approval, total combined assistance limits, and program guidelines. We help borrowers identify the highest-value stack.
Most California DPA programs require first-time buyer status (no homeownership in the past 3 years), income at or below 80 to 120 percent of area median income, a minimum 640 to 680 credit score, and homebuyer education completion. Each program has specific eligibility rules and funding can run out, so program availability changes throughout the year.
Combined DPA can range from 3 to 10 percent of the purchase price depending on programs used and county. On a $525,000 Sacramento home, properly stacked DPA can provide $15,000 to $50,000+ in down payment and closing cost assistance, though final amounts depend on program guidelines, funding availability, and borrower eligibility.
Yes. CalHFA, GSFA, and most county programs continue in 2026, though funding is allocated annually and can be exhausted. Some programs (like Dream For All) have lottery-style application windows. Reach out for current availability.
Yes. CalHFA MyHome and GSFA Platinum work with FHA, VA, USDA, and conventional first mortgages. Chenoa Fund pairs with FHA. Some programs are restricted by loan type, so a quick eligibility check confirms the best match.
Trusted external sources to verify program details and current guidelines:
Verify current guidelines, income limits, purchase price limits, and funding availability directly with the issuing agencies. Programs are real, but they have to be matched carefully to the buyer, property, county, income limits, and current funding availability.
Schedule a free discovery call with Ken Clark Jr. and get clarity on your buying power, programs, and next steps.
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