Whether you’re a first-time homeowner or a repeat borrower, we’ll show you all of your options when it comes to down payment assistance programs, allowing you to choose the right one for you. Some of these programs won’t last forever, so don’t wait!
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Buying a home for the first time can feel like a big leap, especially in California where home prices can be intimidating. But don’t worry—there are several programs available that can help make homeownership more accessible and affordable. Two of the main organizations offering assistance to first-time homebuyers in California are the California Housing Finance Agency (CalHFA) and the Golden State Finance Authority (GSFA). Let’s break down what each program offers and how they can help you get into your first home.
Navigating the homebuyer assistance programs may seem complicated—there are so many options, requirements, and details to consider! But don’t worry—that’s what we do all day, every day. At HappyDog, we’re here to guide you through the process and help you determine which program is the best fit for your specific situation.
CalHFA Loan Options
These are 30-year, fixed-rate loans available as conventional or FHA loans. The CalHFA loans offer down payment and/or closing cost assistance. You’ll need a minimum credit score of 660, and you’ll also need to take an approved homebuyer education course.
If you’re a military member or veteran, you might be eligible for a 30-year, fixed-rate VA loan through CalHFA. You’ll need to meet the standard VA loan requirements, including having a certificate of eligibility.
For those looking to buy in designated rural areas, CalHFA offers USDA loans with 30-year fixed rates. These loans have specific geographic and income requirements.
This program offers a loan of up to 10% of the home’s purchase price, which is forgivable after five years if you continuously live in the home as your primary residence. This can be a great way to reduce the initial costs of buying a home.
CalHFA also offers a range of down payment assistance programs to help bridge the gap for first-time buyers:
Provides up to 3% of the home’s purchase price (or 3.5% for FHA loans) as a deferred second mortgage for down payment and closing costs. You won’t need to repay these funds until you sell, move, or refinance the home.
This is another deferred second mortgage option that can be combined with CalPLUS loans to help with closing costs.
A newer program that offers first-generation, first-time buyers 20% of the home’s purchase price as a down payment. When you sell or refinance, you’ll repay that 20%, plus a share of the home’s appreciation, depending on your income.
Aside from CalHFA and GSFA, there are also national loan programs that can be valuable for first-time homebuyers:
Great for buyers with lower credit scores or limited savings; they require a minimum credit score of 580 and as little as a 3.5% down payment.
Suitable for buyers in rural areas, these loans have no down payment requirement but do have geographic and income limits.
Discuss with a mortgage advisor today!
