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First-Time Buyers • July 3, 2025
How to Buy a Home in California With No Money Down (2026 Guide)
Most California buyers assume they need 20% down. They're wrong. There are multiple programs — including VA loans, CalHFA, and down payment assistance — that can get you into a home with little or nothing out of pocket.
California has a reputation for being expensive — and it is. But that doesn't mean you need a massive down payment to buy here. There are multiple legitimate programs that let qualified buyers purchase with little or no money out of pocket, and most buyers have no idea they exist.
Here are the most effective no-money-down and low-down-payment options available to California buyers in 2026.
VA loans — zero down for veterans and active duty. If you've served in the U.S. military, the VA loan is the single best mortgage program available anywhere in the country. No down payment, no private mortgage insurance, and no loan limit for veterans with full entitlement. In California — where the median home price in many counties exceeds $700,000 — being able to buy with zero down is an enormous advantage. This program is available to eligible veterans, active-duty service members, and surviving spouses.
CalHFA MyHome Assistance Program. The California Housing Finance Agency offers down payment and closing cost assistance through a deferred-payment loan. You don't make payments on the assistance until you sell, refinance, or pay off the first mortgage. The assistance covers up to 3.5% of the purchase price and can be combined with FHA or conventional financing.
CalHFA Zero Interest Program (ZIP). ZIP provides additional closing cost assistance as a zero-interest deferred loan on top of the MyHome program. Stacking these two programs together can dramatically reduce or eliminate what you need to bring to closing.
Dream For All — when it's available. California periodically opens the Dream For All Shared Appreciation Loan program, which provides up to 20% of the purchase price as a down payment loan. The state receives a share of the home's appreciation when you sell or refinance. This program moves quickly when it opens — funds are typically exhausted within days. The key is being pre-approved and ready before the application window opens.
Income and purchase price limits apply. Every assistance program has eligibility requirements. CalHFA programs have income limits (which vary by county) and purchase price caps. In high-cost counties like Los Angeles, San Francisco, and San Diego, the limits are higher than most people expect — but you still need to check your specific county.
Who qualifies? First-time buyers (defined as someone who hasn't owned a home in the last three years), buyers within the income limits for their county, and buyers who complete a homebuyer education course. Some programs also work for repeat buyers in targeted zip codes.
The most important thing you can do right now is find out what you qualify for before you start house-hunting — not after. I'm licensed in California and work with CalHFA and other assistance programs regularly. Book a free 30-minute call and I'll tell you exactly which programs apply to your situation.
Jason L. Esposito | NMLS# 308764 | Hoot Home Loans NMLS# 2532931 | CA-DFPI | TX-SML | FL-OFR | Equal Housing Opportunity. Not a commitment to lend.