Short Answer: If you are struggling to save for a home in California, the California Housing Finance Agency (CalHFA) provides down payment and closing cost assistance programs: like MyHome Assistance and the Dream For All Shared Appreciation Loan: that can cover up to 20% of your home's purchase price. These are deferred-payment loans designed specifically for first-time homebuyers who meet certain income and credit requirements.
Saving for a down payment is often the single biggest hurdle for first-time homebuyers in California. With home prices continuing to rise, the traditional "20% down" feels more like a dream than a reality for many families. However, at Maya Team Inc., we believe that homeownership should be accessible to those who are ready for the responsibility, even if they haven't saved a massive lump sum.
That is where CalHFA comes in. As an authoritative educator in the mortgage space with over 22 years of experience and more than 3,000 closed transactions, we have seen how these programs change lives. But these loans are complex, and the rules change frequently.
Here are the five critical things you need to know about CalHFA loans in 2026.
1. What exactly is CalHFA?
The California Housing Finance Agency (CalHFA) is not a direct lender. Instead, it is a state agency that creates specialized loan programs to help low-to-moderate-income residents purchase homes.
When you use a CalHFA program, you are actually getting two (or sometimes three) loans:
- A First Mortgage: This is your primary loan (FHA or Conventional) that you pay back monthly.
- A Subordinate Loan: This is the "assistance" portion that covers your down payment or closing costs. These often have deferred payments, meaning you don't pay them back every month.
By layering these loans, you can significantly reduce the amount of "cash to close" you need to bring to the table.
2. The MyHome Assistance Program: The 3% Solution
The MyHome Assistance Program is the most common path for first-time buyers. It is a deferred-payment junior loan that provides up to 3% of the purchase price (or appraised value, whichever is lower) to help with your down payment or closing costs.
Key Features of MyHome:
- Deferred Payments: You do not make monthly payments on the MyHome loan.
- Lower Entry Cost: When paired with an FHA loan (which requires 3.5% down), MyHome can cover almost the entire down payment, leaving you to only cover a portion of the closing costs.
- Eligibility: You must be a first-time homebuyer and meet specific county income limits.
3. The "Dream For All" Shared Appreciation Loan
If you need more than 3% help, the Dream For All (DFA) program is a game-changer, though it operates differently than traditional assistance. This program can provide up to 20% of the purchase price (capped at $150,000 in 2026).
How Shared Appreciation Works:
Unlike a standard loan where you just pay back what you borrowed plus interest, the Dream For All program uses a Shared Appreciation model.
- The Deal: CalHFA gives you the money for the down payment. In exchange, when you eventually sell or refinance the home, you pay back the original loan amount plus a percentage of the home's increased value (appreciation).
- 1:1 Ratio: If CalHFA provided 20% of the purchase price, they typically take 20% of the profit when you sell.
Note for 2026: This program currently uses a voucher lottery system. You cannot simply apply at any time; you must register during a specific window (usually between February and March) to be entered for a chance to receive the funds.
4. Understanding the Technical Requirements (FICO & DTI)
To qualify for CalHFA assistance, you must meet strict financial "underwriting" standards. Underwriting is the process a lender uses to determine your creditworthiness and the risk of lending to you.
Credit Score (FICO)
Your FICO score is a mathematical summary of your credit history.
- For most CalHFA programs, you generally need a minimum credit score of 660 to 680.
- If your score is lower, you may need to work on credit repair before applying to ensure you meet the agency's "overlays" (extra rules lenders add on top of standard guidelines).
Debt-to-Income Ratio (DTI)
Your DTI is the percentage of your gross monthly income that goes toward paying debts (like car loans, student loans, and your future mortgage).
- CalHFA typically caps the DTI at 45% to 50%.
- If your DTI is too high, you may be denied even if you have a perfect credit score.
Homebuyer Education
All CalHFA borrowers are required to complete a formal homebuyer education course. This is a vital step that ensures you understand the legal and financial obligations of owning a home.
5. When Do You Have to Pay It Back?
The most common question we get at Maya Team Inc. is: "Is this free money?"
The answer is no. These are loans, not grants. While you don't make monthly payments on the assistance portion, the full balance becomes due when you:
- Sell the home: The loan is paid off from the proceeds of the sale.
- Refinance the home: If you decide to change your first mortgage to get a lower rate, you usually have to pay off the CalHFA assistance loan at that time (though some exceptions for a "one-time refinance" may apply).
- Pay off the first mortgage: Once your 30-year term ends, the junior loan is due.
- Transfer the title: If you move out and turn the home into a rental or transfer it to someone else, the loan must be repaid.
Your CalHFA Readiness Checklist
Before you start shopping for homes in California, use this checklist to see if you are ready:
- Check Income Limits: Ensure your total household income is below the limit for your specific county. You can find the current CalHFA Income Limits here.
- Confirm First-Time Status: Have you owned a home in the last three years? If not, you qualify.
- Review Your Credit: Is your FICO score above 660?
- Calculate Your DTI: Total monthly debt divided by gross monthly income. Aim for under 45%.
- Save for "Skin in the Game": Even with 100% financing, you will still need some savings for earnest money deposits and inspections.
Why Work with Maya Team Inc.?
Navigating state-funded programs requires a consultant who understands the nuances of the California market. At Maya Team Inc., we don't just "sell" you a loan; we educate you on the process. We help you compare the long-term costs of shared appreciation versus traditional deferred loans so you can make the best decision for your family's future.
Ready to see how much assistance you qualify for?
Don't let the down payment hold you back from building equity and securing your future. Contact us today for a personalized consultation.
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