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California Down Payment Assistance Programs (2026 Guide): Everything Homebuyers Need to Know

 

Buying a home in California can feel impossible, especially when saving for a down payment. Fortunately, California offers numerous down payment assistance (DPA) programs designed to help first-time buyers—and in some cases repeat buyers—become homeowners sooner.

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These programs can provide thousands of dollars toward your down payment and closing costs, but each comes with different eligibility requirements, income limits, repayment terms, and restrictions.

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Here's a complete guide to the major California down payment assistance programs available today.

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What is Down Payment Assistance?

 

Down payment assistance (DPA) provides financial help that can be used toward:

  • Down payment

  • Closing costs

  • Prepaid taxes and insurance

  • Sometimes both

 

Depending on the program, the assistance may be:

  • A forgivable loan

  • A deferred-payment second mortgage

  • A shared appreciation loan

  • A grant

  • A repayable second mortgage

 

Many buyers are surprised to learn that they qualify even if they have good credit and steady income.

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1. CalHFA MyHome Assistance Program

 

The California Housing Finance Agency (CalHFA) offers one of the state's most popular down payment assistance programs.

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Assistance Amount

  • Up to 3% of the purchase price or appraised value for conventional loans

  • Up to 3.5% for FHA loans

  • Can be used for down payment and/or closing costs.

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Repayment

This is not a grant.

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The loan is:

  • Deferred

  • No monthly payments

  • Due when the home is:

    • Sold

    • Refinanced

    • Paid off

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Requirements

  • First-time homebuyer (generally no ownership in the past three years)

  • Primary residence

  • Meet county income limits

  • Meet lender credit requirements

  • Complete approved homebuyer education

  • Must use a CalHFA first mortgage.

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2. California Dream For All Shared Appreciation Loan

 

The Dream For All Program has become one of California's most talked-about homebuyer programs.

Instead of a traditional second mortgage, the state provides significant down payment assistance in exchange for a portion of the home's future appreciation.

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Assistance

  • Up to 20% of the purchase price

  • Maximum $150,000

  • Can be used for down payment and closing costs.

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Repayment

When the home is:

  • Sold

  • Refinanced

  • Transferred

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The borrower repays:

  • Original loan amount

  • Plus a percentage of the home's appreciation

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Requirements

  • First-time homebuyer

  • First-generation homebuyer (at least one borrower)

  • California resident

  • Owner-occupied property

  • County income limits apply

  • Complete homebuyer education

  • Participation is currently through a voucher/registration process rather than first-come, first-served.

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Restrictions

 

Because funds are limited, availability depends on state funding and enrollment periods.

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3. GSFA Platinum Program

 

The Golden State Finance Authority (GSFA) Platinum Program is unique because it is available to both first-time and repeat buyers.

Assistance

  • Up to 5.5% of the first mortgage amount

  • Can be used for:

    • Down payment

    • Closing costs.

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Repayment

Depending on the assistance selected:

  • Repayable second mortgage

  • Gift funds may also be available during promotional periods

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Requirements

  • Minimum FICO typically around 640

  • Primary residence

  • Income limits apply

  • FHA, VA, USDA and Conventional financing available

  • DTI up to 50% may qualify.

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Great For

  • Repeat buyers

  • Buyers with limited savings

  • Borrowers using government-backed loans

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4. GSFA Golden Opportunities Program

 

Another statewide GSFA option designed for low-to-moderate income buyers.

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Assistance

  • Up to 5% of the first mortgage amount.

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Repayment

  • Primarily a 15-year amortizing second mortgage

  • Promotional gift funds may be available in some market conditions.

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Requirements

  • No first-time buyer requirement

  • Credit scores starting around 620

  • Income limits

  • Primary residence

  • FHA, VA and USDA financing supported.

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5. Local City and County Assistance Programs

 

Many California cities and counties also provide their own assistance.

 

Examples include:

Los Angeles Housing Department (LIPA)

Offers deferred-payment assistance for eligible first-time buyers purchasing within the City of Los Angeles.

Highlights:

  • Up to 5% of purchase price (subject to program limits)

  • Shared appreciation component

  • Income restrictions

  • Homebuyer education required

  • Primary residence required.

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Los Angeles County HOP80 & HOP120

Provides:

  • Up to 20% toward down payment

  • Zero-interest deferred loans

  • Shared equity upon repayment

  • Purchase price and income limits apply

  • Homebuyer education required.

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San Diego County

Offers deferred-payment assistance for qualified buyers, including help with both down payment and closing costs. Assistance amounts, income limits, and purchase price limits vary by program.

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Inland Empire Down Payment Assistance

 

Eligible first-time buyers may qualify for up to $40,000 in assistance through a deferred, zero-interest loan. Availability depends on funding and local guidelines.

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General Eligibility Requirements

While every program is different, most require:

  • Primary residence

  • Minimum credit score (typically 620–680)

  • Income below county limits

  • Completion of homebuyer education

  • Debt-to-income ratio within program limits

  • Owner occupancy

  • Eligible property type

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Some programs require:

  • First-time homebuyer status

  • First-generation homebuyer status

  • Use of a participating lender

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Common Restrictions

Many buyers overlook these important restrictions:

  • Assistance usually cannot be used for investment properties.

  • Most programs require owner occupancy.

  • Income limits vary by county.

  • Assistance may need to be repaid.

  • Some programs include shared appreciation.

  • Funding can run out quickly.

  • Not every lender participates in every program.

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Which Program Is Best?

There isn't a single "best" program.

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The right option depends on:

  • Your income

  • Credit score

  • Down payment available

  • Property location

  • Loan type

  • Whether you're a first-time buyer

  • Whether you're a repeat buyer

 

An experienced mortgage professional can often compare multiple assistance programs to determine which provides the greatest financial benefit.

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Final Thoughts

Saving for a down payment is one of the biggest hurdles to homeownership—but it doesn't have to stop you.

California offers numerous down payment assistance programs that can significantly reduce your upfront costs. Whether you're buying your first home or you're a repeat buyer, there may be a program that fits your situation.

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Because program guidelines, funding availability, income limits, and interest rates change regularly, it's important to review the latest requirements before starting your home search.

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If you're considering buying a home anywhere in California, we'd be happy to review your situation, determine which assistance programs you qualify for, and help you build a plan to become a homeowner.

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