If you have been scrolling through Zillow or Redfin lately, you know the feeling. You find a house you love, you check the monthly payment, and it actually looks doable! But then you see that one big number: the down payment. For many people in California, coming up with tens of thousands of dollars all at once feels like trying to climb Mount Everest in flip-flops.
The good news? You don't have to do it alone. The California Housing Finance Agency (CalHFA) has programs designed specifically to help you bridge that gap. Whether you need three percent or even twenty percent of the purchase price, there are options available right now.
The Short Answer: CalHFA provides "silent second" mortgages that cover your down payment and closing costs. These are deferred-payment loans, meaning you don't make a monthly payment on the assistance itself. Instead, you pay it back when you sell the home, refinance your mortgage, or pay off the primary loan.
Here are ten essential things you need to know about CalHFA and down payment assistance (DPA) programs in twenty twenty-six.
1. The MyHome Assistance Program is Your Best Friend
The MyHome program is the "bread and butter" of California down payment assistance. It is a deferred-payment junior loan that helps first-time homebuyers with their down payment or closing costs.
- If you use an FHA loan: You can get up to the lesser of three and a half percent of the purchase price or the appraised value.
- If you use a Conventional loan: You can get up to the lesser of three percent.
Because this is a "silent" loan, your monthly mortgage payment stays lower because you aren't paying back the assistance every month.
2. The ZIP Program Can Cover Your Closing Costs
"ZIP" stands for Zero Interest Program. This is exactly what it sounds like: a loan with zero percent interest. It is usually paired with a CalPLUS mortgage and is designed specifically to help cover those pesky closing costs that catch many buyers off guard.
Closing costs can easily add up to several thousand dollars: sometimes between two percent and five percent of the home price. The ZIP program helps ensure you don't have to drain your savings account just to sign the final paperwork.
3. The "California Dream For All" Shared Appreciation Loan
This is the "big one" you might have heard about on the news. The Dream For All program provides up to twenty percent of the home’s purchase price, capped at one hundred fifty thousand dollars.
The catch? It’s a "Shared Appreciation" loan. This means when you sell the home later, you pay back the original loan amount plus a percentage of the home's increase in value. If the home doesn't go up in value, you only owe the original amount. This is a massive leg up for families who otherwise couldn't afford a home in expensive areas like Los Angeles or Orange County.
4. You Must Be a "First-Time Homebuyer" (Usually)
Most CalHFA programs require you to be a first-time homebuyer. But here is a secret: in the world of real estate, a "first-time homebuyer" doesn't necessarily mean you have never owned a home.
In most cases, if you haven't owned and occupied your own home in the last three years, you qualify as a first-time buyer! This is great news for people who may have owned a home a decade ago but have been renting recently.
5. There Are Income Limits
Since these programs are designed to help people get into the market, there are caps on how much money you can earn. These limits change depending on which county you are buying in. For example, the income limit in Riverside County might be different than the limit in San Bernardino or Los Angeles.
Before you get too deep into the process, we can check the current twenty twenty-six income charts for your specific county to make sure you fit the criteria.
6. Credit Score Requirements Still Apply
Even though you are getting assistance, you still need to prove you are a responsible borrower. While CalHFA is flexible, you typically need a minimum credit score (often around six hundred forty or six hundred sixty, depending on the loan type).
If your score is a bit lower, don't panic! We specialize in helping buyers understand their credit and what steps are needed to get "mortgage ready."
7. The First-Generation Requirement for Dream For All
For the Dream For All program specifically, there is a unique rule: at least one borrower must be a "first-generation" homebuyer. This means your parents do not currently own a home in the United States. If they did own a home but lost it to foreclosure or sold it, you might still qualify. This rule was created to help build "generational wealth" for families who have historically been left out of the housing market.
8. You Have to Take a Class (And It's Actually Helpful!)
CalHFA requires all borrowers to complete a homebuyer education course. You can usually do this online. It covers the basics of budgeting, the closing process, and how to maintain your home. Once you finish, you get a certificate that is required for your loan approval. Think of it as a small investment of time that saves you thousands of dollars.
9. Property Types: What Can You Buy?
You can’t use CalHFA for an investment property or a "flip." It must be your primary residence: the place where you actually live. Eligible properties include:
- Single-family one-unit homes.
- Approved Condominiums.
- Planned Unit Developments (PUDs).
- Manufactured homes (under certain conditions).
Unfortunately, "co-ops" or multi-unit investment properties are generally not allowed under these specific assistance programs.
10. You Need a Checklist to Get Started
Getting qualified for a mortgage and down payment assistance requires some paperwork. To make it easy for you, we have put together a simple checklist of the documents you will need to gather.
Your Mortgage Checklist:
- Two recent paycheck stubs.
- Two years of tax returns (with W2s).
- Two months of bank statements.
- Two forms of identification (ID).
How Maya Team Inc. Can Help
Navigating the world of FHA, CalHFA, and MyHome programs can feel overwhelming. That is where we come in. As a Real Estate and Mortgage Broker, Rony Velasquez acts as your Mortgage Loan Originator (MLO) to find the best loan product for your specific situation. Mona Bottros, our Realtor® and Office Manager, ensures the entire process is smooth and stress-free.
We aren't just here to "sell" you a loan; we are here to educate you. We want to make sure you understand every dollar you are borrowing and every benefit you are receiving.
If you are tired of paying rent and want to see if you qualify for any of these assistance programs, let's talk! You can find more resources and calculators at our website: https://nas.io/mayateaminc.
Do you have questions about which program is right for you? Write a comment below or send us a message! We would love to hear your thoughts and help you start your journey to homeownership.
Contact Rony Velasquez & Mona Bottros:
- Mobile: 562-762-9634
- Email: mayateaminc@gmail.com
- Website: https://nas.io/mayateaminc
