California First-Time Homebuyer Programs (2025): What You Need to Know

Written by: Courtney Muller
  |  5 min read

Key Takeaways

    • California home prices are nearly double the national average, but assistance programs help make ownership possible.

    • CalHFA offers flexible loan options that pair with down payment and closing cost help.

    • The MyHome Assistance Program provides up to 3.5% in support for down payments or closing costs.

    • Local city and county programs offer additional aid, sometimes exceeding $100,000 in assistance.

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 Californialow-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.

Explore Low Down Payment Mortgages, low income mortgages, low income payments

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.

click here to check your mortgage eligibility and get pre approved for a home loan

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.

 

FAQs About California Down Payment Assistance

Most programs require you to be a first-time buyer, meet income limits, and live in the home as your primary residence.
The minimum credit score typically ranges from 660 to 680, depending on the loan type.
Yes, many programs—like CalHFA and MyHome Assistance—can be layered to help with both down payments and closing costs.
Yes, several county and city-specific programs offer additional support, such as in Los Angeles, San Diego, and San Francisco.
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