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First-Time Buyers • July 31, 2025
CalHFA Down Payment Assistance in California: Complete 2026 Guide
CalHFA offers deferred loans, zero-interest programs, and shared appreciation grants to help California buyers cover their down payment and closing costs. Here's exactly how each program works in 2026.
California has some of the highest home prices in the country, but it also has one of the most robust systems of down payment assistance available anywhere. The California Housing Finance Agency — CalHFA — administers several programs designed to close the gap between what buyers have saved and what they need to close. Most buyers have no idea these programs exist or that they might qualify.
Here's a plain-English breakdown of every major CalHFA program available to buyers in 2026.
MyHome Assistance Program. This is CalHFA's flagship down payment and closing cost assistance program. It provides a deferred-payment junior loan — meaning you borrow the money but make no monthly payments on it. The balance is due only when you sell the home, refinance, or pay off the first mortgage. The assistance amount is up to 3.5% of the purchase price or appraised value, whichever is less. It can be used with CalHFA FHA or CalHFA conventional first mortgage loans.
CalHFA Zero Interest Program (ZIP). ZIP is a closing cost assistance program offered as a zero-interest deferred loan. There are no monthly payments and no interest accrues. The balance comes due the same time as MyHome — when you sell, refinance, or pay off the first loan. Many buyers stack ZIP on top of MyHome, which can dramatically reduce the cash needed to close.
Dream For All Shared Appreciation Loan. This is CalHFA's most powerful program — and the most competitive. Dream For All provides up to 20% of the purchase price as a down payment loan. In exchange, the state receives a share of the home's appreciation when you sell or refinance. The program has been offered in limited rounds with a lottery system due to high demand, and funds typically run out within days of opening. To compete, you need to be fully pre-approved before the window opens. If you're a first-time buyer in California and Dream For All is available in 2026, this should be your first call.
Income limits — higher than most people think. Every CalHFA program has income limits, but they're set by county and adjusted regularly. In high-cost counties like San Francisco, Los Angeles, San Diego, and Santa Clara, the limits are substantially higher than in rural areas. A household earning $150,000 or more may still qualify in some counties. The only way to know for certain is to check your specific county limit or ask a CalHFA-approved lender.
Purchase price limits. CalHFA also caps the maximum purchase price. For 2026, purchase price limits vary by county and loan type — generally ranging from around $700,000 in lower-cost counties to over $1,000,000 in high-cost areas. Again, these are county-specific and updated periodically.
Who qualifies? You must be a first-time homebuyer — defined as someone who has not owned and occupied a primary residence in the last three years. You must complete a homebuyer education course (typically an 8-hour online course through an approved provider). You must meet the income and purchase price limits for your county. And you must use the home as your primary residence.
How CalHFA works with your first mortgage. CalHFA assistance is always layered on top of a first mortgage. Eligible first mortgages include CalHFA FHA (30-year fixed with competitive rates), CalHFA Conventional (30-year fixed, requires 660+ credit score), and CalEEM + Grant (for energy-efficient homes). The assistance programs are designed to work specifically with these first mortgage products — they cannot be layered onto just any loan.
What you can realistically expect to receive. On a $550,000 home in California, the MyHome program could provide up to $19,250 toward your down payment. Stacking ZIP on top could cover an additional $5,000 to $8,000 in closing costs. On a CalHFA conventional loan requiring 3% down ($16,500), the assistance could cover your entire down payment and a significant portion of closing costs — leaving you with very little out of pocket.
I'm a CalHFA-approved lender licensed in California. If you're a first-time buyer in California and you want to know exactly which programs you qualify for and what they'd mean for your purchase — book a free 30-minute call. I'll run the numbers for your specific county, income, and price range.
Jason L. Esposito | NMLS# 308764 | Hoot Home Loans NMLS# 2532931 | CA-DFPI | TX-SML | FL-OFR | Equal Housing Opportunity. Not a commitment to lend.