Struggling with the high cost of a down payment in California? California down payment assistance programs offer solutions like grants, loans, and matched savings. These programs, designed for first-time buyers and those with income limitations, can significantly reduce the upfront cost of homeownership. Eligibility often depends on income, credit score, and location. Explore programs like CalHFA MyHome or local city/county options to see if you qualify.
What Is Down Payment Assistance?
Down payment assistance (DPA) helps buyers cover part or all of their initial home purchase payment. California down payment assistance programs come in multiple forms:
- Grants: Free money you don’t have to repay.
- Loans: Either interest-free or low-interest loans, sometimes forgivable under certain conditions.
- Deferred Payment Loans: Loans that delay repayment until you sell, refinance, or pay off the mortgage.
- Matched Savings Programs: Some programs match what you save for a down payment.
Who Qualifies for California Down Payment Assistance?
Eligibility depends on the program, but these four factors usually decide who gets assistance:
- First-Time Buyers: Many programs define this as someone who hasn’t owned a home in the last three years.
- Income Limits: Some programs cap eligibility based on income level.
- Credit Score: Most require at least a 620, but some need a 640 or higher.
- Property Type: The home usually must be your primary residence.
Best California Down Payment Assistance Programs
California has plenty of options, but these are the major ones making homeownership more accessible.
CalHFA MyHome Assistance Program
This program provides a deferred-payment loan of up to 3.5% of the home’s price. You don’t need to repay it until you sell, refinance, or pay off your mortgage.
Who qualifies?
- First-time homebuyers
- Minimum credit score of 660
- Must meet income limits by county
CalHFA Forgivable Equity Builder Loan
If you make below 80% of the area median income, this program provides up to 10% of the home’s price. The best part? It’s forgivable if you stay in the home for five years.
Who qualifies?
- First-time homebuyers
- Household income below 80% of area median
- Buyers using a CalHFA first mortgage
GSFA Platinum Program
One of the few programs that isn’t limited to first-time homebuyers. Offers up to 5% assistance, either as a forgivable loan or a grant.
Who qualifies?
- Homebuyers in California
- Minimum credit score of 640
- Borrowers using FHA, VA, USDA, or conventional loans
City and County Programs
Many cities and counties have programs that offer low-interest or forgivable loans. For example:
- San Francisco DALP – Up to $375,000 as a loan.
- San Diego DPA – Borrow up to $70,000, deferred payment.
- Los Angeles LIPA – Offers a silent second mortgage for low-income buyers.
How to Apply for Down Payment Assistance
The process isn’t complicated, but it does take a little time. Here’s how it works:
- Check eligibility: Go to the program’s website and confirm you meet the requirements.
- Get pre-approved: Work with a lender familiar with California down payment assistance programs.
- Complete homebuyer education: Programs like CalHFA and GSFA require a course.
- Submit your application: Your lender or the program itself will help you do this.
- Close on your new home: Once approved, the financial assistance helps cover your down payment.
FAQs
How much down payment assistance can I get in California?
It depends on the program. Some offer 3%, others up to 10%, and a few like San Francisco’s DALP go up to $375,000.
Do I have to pay back down payment assistance?
Some programs are grants (free money), while others are deferred payment loans—meaning no monthly payments until you sell, refinance, or pay off your mortgage.
What credit score do I need for down payment assistance?
Most programs require at least a 620, but some set the minimum at 640 or even 660.
Can I combine multiple down payment assistance programs?
Yes, but not always. Some programs allow stacking, while others don’t.
Conclusion
California down payment assistance programs are designed to help make homeownership more affordable. If you’re trying to figure out which one fits your situation best, working with a lender experienced in these programs is the smartest move.