Buying your first home in California, especially in 2025, can be both exciting and challenging. With home prices in California nearly double the national average, many new buyers feel priced out before they even begin. Fortunately, California first-time homebuyer programs, including down payment assistance in California, low-interest mortgage loans, and closing cost help, make homeownership more accessible across the state. If you’re exploring how to afford your first home in California, these programs offer the support you need.

California Homeownership Snapshot (2025)

The table below shows a current snapshot of the California housing market in early 2025. Understanding these benchmarks helps first-time buyers plan realistically.

Data Point	Value	Source
Median Home Price (Jan 2025)	$784,900	Redfin
Median Down Payment (Oct 2024)	$158,000	Attom
Most Affordable Counties	Modoc, Trinity, Lassen, Siskiyou, Tehama, Mariposa, Sierra	Internal

Best First-Time Homebuyer Programs in California (2025)

CalHFA Loan Programs

The California Housing Finance Agency (CalHFA) offers 30-year fixed-rate loans for FHA, VA, USDA, and conventional options. These loans often pair with assistance programs for down payments and closing costs.

Requirement	Details
Credit Score	Minimum 660–680, depending on loan type
Occupancy	Must live in the home as primary residence
Education	Required homebuyer education course
Income Limits	Must meet CalHFA limits by location

There is no sales price cap, and borrowers can access a wide range of loan options, including government-backed mortgages. These programs are available for various property types, such as condos, single-family homes, and even accessory dwelling units (ADUs). However, one potential drawback is that assistance programs may slightly increase interest rates.

CalPLUS Loan with ZIP

The CalPLUS loan includes the Zero Interest Program (ZIP) for closing cost assistance. Available with either FHA or conventional loans, this option targets buyers needing upfront help.

These loans have no limit on sales price and can help cover closing costs, making them a flexible option for many buyers. However, they typically carry a higher interest rate compared to standard CalHFA loans.

Down Payment Assistance in California

MyHome Assistance Program

MyHome offers a deferred second mortgage—no monthly payments—covering a portion of your down payment and closing costs.

Loan Type	Assistance Offered
Conventional	Up to 3%
FHA	Up to 3.5%

This program can be combined with CalHFA loans and offers access to hundreds of approved loan officers, making it widely accessible. However, it is not available for VA or USDA loans, which limits its compatibility for some buyers.

GSFA Platinum & Golden Opportunities

The Golden State Finance Authority (GSFA) programs offer up to 5.5% assistance for both first-time and repeat buyers.

These programs offer flexibility across different loan types and, for government-backed loans, do not impose income limits, which broadens eligibility. The main drawback is that they require monthly repayment, unlike some deferred assistance options.

Special Programs for California First-Time Buyers

California Dream For All (Paused)

Previously, this program offered up to 20% of a home’s value (up to $150,000) for down payments. Repayment included a share of appreciation. While it’s closed for now, many anticipate its return.

Local First-Time Homebuyer Programs by Region

Many counties and cities in California also offer customized help. Here’s how they compare:

Area	Program Name & Benefit	Special Notes
Los Angeles	LAHD LIPA: Up to $161,000 (zero-interest loan)	Shared appreciation required
LA County	HOP80 & HOP120: Up to 20% of price	Includes Mortgage Credit Certificate (MCC)
Orange County	MAP: Up to $80,000 in select areas	Deferred second mortgage
San Diego	Up to 22% of home price + $10,000 for closing costs	Up to 22% of home price + $10,000 for closing costs
Inland Empire	IEDPA: Up to $40,000 for Riverside & San Bernardino	Zero-interest loan
San Francisco	DALP: Up to $500,000 for down payment	Repayment includes appreciation share
San Mateo	HEART: 5% down, no PMI	Also available to some repeat buyers

National Loan Options Still Available in California

Even if you don’t qualify for state or local programs, these national first-time buyer options can help

Loan Type	Key Benefits
FHA Loan	3.5% down, credit scores as low as 580
VA Loan	0% down, for eligible military/veterans
USDA Loan	0% down, available in rural areas
USDA Loan	Up to 50% discount for teachers, EMTs, police, and firefighters

How to Get Started in 2025

Securing assistance requires planning and the right paperwork. Take these steps now to prepare:

1. Check your eligibility for CalHFA and local programs based on location and income.
2. Boost your credit score to unlock better rates and more loan options.
3. Compare mortgage lenders, especially those approved for CalHFA loans.
4. Complete a homebuyer education course early to stay ahead of application requirements.

Next Steps

Thanks to a wide range of California homebuyer programs, owning a home in 2025 is more achievable than ever—even with rising home prices. Whether you need help covering a down payment, reducing closing costs, or qualifying for a competitive loan, there’s likely a program that fits your situation. Start by checking your eligibility and connecting with an experienced lender. With the right tools, your journey to becoming a homeowner in California starts today.

 

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