California’s first-time homebuyer programs can make owning a home possible, Eligibility requirements for California first-time homebuyer programs but do you actually qualify? A lot of people assume they won’t, but the truth is, the requirements aren’t as tough as you’d think. If you’re struggling to save up for a down payment or worried your income isn’t high enough, these programs could be your way in. I’ll walk through who qualifies, the income limits, and the small details that trip people up.
What Counts as a First-Time Homebuyer in California?
Here’s the deal: “first-time homebuyer” doesn’t mean never owning a home before. This term applies to anyone who hasn’t owned a home in the last three years. If you owned a place five years ago but have been renting ever since, you’re still considered a first-timer.
That means even if you sold your home years ago, you might still qualify. California wants to help people get into homes—not punish them for owning a home in the past.
Income Limits: How Much Can You Make and Still Qualify?
Each program has its own income limits, but most are designed for low-to-moderate-income buyers. CalHFA, one of the main programs, adjusts income limits based on the county you’re buying in.
For reference, in Los Angeles County, the income limit for some programs is around $180,000, but in smaller counties, it might be lower. If you’re earning under that, you could be eligible.
You don’t have to guess if you qualify—just check the income limits for your county on the CalHFA website.
Credit Score Requirements: Do You Need a Perfect Score?
Nope. You don’t need an 800 credit score to qualify. Most first-time homebuyer programs in California require at least a 660-680, but some will work with lower scores if you meet other requirements.
If your score isn’t where it needs to be, focus on these quick wins to boost it:
- Pay down high credit card balances
- Make every payment on time
- Avoid applying for new credit before buying a home
If your score is really low, you might still qualify, but your interest rate could be higher.
Down Payment Assistance: How Much Can You Get?
One of the biggest barriers to buying a home is coming up with the down payment. The good news? California has programs that help cover part (or even all) of it.
CalHFA offers loans that help with down payments, including:
- CalHFA MyHome Assistance Program: Covers up to 3.5% of the home price.
- CalHFA Zero Interest Program: Helps pay for closing costs.
- Forgivable Equity Builder Loan: Offers up to 10% in assistance for low-income buyers.
This means you might be able to get into a home without needing tens of thousands in upfront cash.
How to Actually Qualify and Get Started
Meeting the requirements is one thing, but actually getting approved is another. Here’s a simple roadmap:
- Check your county’s income limits. If you’re over the limit, you might need a different program.
- Pull your credit score. If it’s below 660, improve it before applying.
- Take the required homebuyer education course. Some programs require this before approving you.
- Find an approved lender. Not all lenders work with first-time homebuyer programs, so check with CalHFA’s list.
- Get pre-approved. This will confirm how much house you can afford.
Skipping steps or assuming you automatically qualify is a mistake. Make sure you actually meet the requirements before applying.
FAQs
Can I use California’s first-time homebuyer programs with an FHA loan?
Yes! In fact, a lot of these programs are built to work alongside FHA loans, since they require lower down payments.
What if I owned a home but sold it years ago?
As long as you haven’t owned a home in the last three years, you still qualify as a first-time homebuyer.
Do I have to live in the home, or can I rent it out?
Most programs require you to live in the home as your primary residence. You can’t use these programs to buy rental properties.
What happens if my income increases after I qualify?
Once you’re approved, your income won’t impact your loan. The income limits apply when you apply, not after.
Conclusion
California’s first-time homebuyer programs are accessible, even without perfect credit or a large down payment. Qualification hinges on meeting income limits, which vary by county, and not owning a home in three years. Down payment assistance and lender pre-approval are key steps. In short, explore CalHFA’s resources to see if you qualify.