The State and Local Programs That Can Make Your Down Payment Much More Manageable
The Down Payment Problem in Southern California
The biggest barrier for first-time buyers in Southern California is not qualifying for a mortgage.
It is coming up with the down payment and closing costs at the same time, in one of the most expensive housing markets in the country.
California has responded to that challenge by creating some of the most comprehensive down payment assistance programs in the nation.
Through the California Housing Finance Agency, known as CalHFA, and through county and city programs layered on top of it, many Southern California first-time buyers can receive meaningful financial help getting to the closing table.
Most people either do not know these programs exist or assume they will not qualify.
Let me walk you through exactly what is available.
CalHFA MyHome Assistance Program
CalHFA MyHome is the foundation of California's first-time buyer assistance.
It is a deferred-payment junior loan, meaning you borrow the money for your down payment and closing costs, but you do not make monthly payments on it.
The balance is repaid when you sell the home, refinance, or pay off your first mortgage.
| Detail | CalHFA MyHome Specifics |
|---|---|
| Assistance Amount | Up to 3% to 3.5% of the purchase price (depending on first loan used) |
| Payment Structure | Deferred; no monthly payments until property is sold, refinanced, or first mortgage is paid off |
| Interest Rate | Simple interest; no compound interest accrual |
| First Loan Required | Must be paired with a CalHFA-approved first mortgage (CalHFA FHA or CalHFA Conventional) |
| First-Time Buyer Requirement | Yes; defined as not having owned and occupied a primary residence in the past 3 years |
| Income Limits | Vary by county; generally $180,000 to $300,000+ depending on household size and location |
| Purchase Price Limits | Vary by county; generally $800,000 to $1,100,000+ in SoCal counties |
| Homebuyer Education | Required; HUD-approved course must be completed before close |
| Property Types | Single-family residence, approved condos, 1-4 unit properties (with conditions) |
On a $650,000 home with a 3.5% CalHFA MyHome loan, the state would contribute $22,750 toward your down payment and closing costs.
That money sits as a quiet second loan with no monthly payment, and it does not come due until you sell or refinance.
For many buyers, this closes the gap entirely.
CalHFA Dream For All Shared Appreciation Loan
Dream For All is CalHFA's most powerful assistance program, but it is also the most limited in availability because it runs in funding cycles and the money goes quickly.
| Detail | Dream For All Specifics |
|---|---|
| Assistance Amount | Up to 20% of the purchase price |
| Payment Structure | Deferred; repaid when you sell or refinance; includes a share of the home's appreciation |
| Appreciation Share | When repaid, CalHFA receives a proportional share of the home's appreciation equal to the percentage they contributed |
| First-Generation Requirement | At least one borrower must be a first-generation homebuyer (parents did not own in the U.S.) |
| First-Time Buyer Requirement | Yes; same 3-year rule as MyHome |
| Funding Cycles | Released in limited funding rounds; demand typically exceeds available funds within days |
| Income Limits | Vary by county; lower limits than MyHome in some areas |
| Best For | First-generation buyers who want to maximize down payment assistance and can move quickly during a funding window |
Dream For All is the program that gets the most attention, and for good reason.
A 20% down payment assistance loan eliminates PMI, reduces your monthly payment significantly, and dramatically changes your purchasing power.
But you need to be ready to act when the funding window opens.
County and City Programs in Southern California
Beyond CalHFA state programs, every major county and many cities in Southern California administer their own assistance programs.
These are often available at the same time as CalHFA assistance and can be layered together.
| Program Area | Program Name / Type | Key Details |
|---|---|---|
| Los Angeles County | LA County DCBA First-Time Homebuyer Program | Deferred loans for down payment; income and purchase price limits apply; varies by area |
| City of Los Angeles | LAHD Low Income Purchase Assistance (LIPA) | Soft second loans for low-income buyers within city limits; significant assistance amounts available |
| San Diego County | County of San Diego Homebuyer Assistance | Deferred loans; income limits; first-time buyer requirement |
| City of San Diego | SD Housing Commission programs | Multiple programs including down payment assistance and closing cost help |
| Riverside County | CalHome Program via Riverside County | Deferred loan assistance; varies by city within county |
| San Bernardino County | County Housing Authority programs | Down payment assistance for qualifying first-time buyers |
| Orange County | Irvine, Anaheim, Santa Ana, and other city programs | City-specific assistance programs; eligibility and amounts vary widely by city |
| Ventura County | Ventura County CHDO and city programs | Down payment and closing cost assistance; first-time buyer and income requirements |
How to Access These Programs: The Requirements You Need to Know
Most CalHFA and county programs share these common requirements:
- First-time buyer definition: You have not owned and occupied a primary residence in the past 3 years. This means people who previously owned but lost a home to foreclosure or short sale may qualify after the 3-year waiting period.
- Owner-occupancy: You must live in the home as your primary residence. These programs are not available for investment properties or vacation homes.
- Income limits: Every program has maximum income limits by household size and county. In most SoCal counties, limits are generous enough to include median-income households.
- Purchase price limits: There are maximum purchase prices for each program. In Los Angeles and Orange counties, these are typically $800,000 or higher.
- Homebuyer education: All CalHFA programs and most local programs require completion of an approved homebuyer education course, typically 8 hours online, before closing.
- Approved lender: You must work with a CalHFA-approved lender to access CalHFA programs. I am CalHFA-approved and work with these programs regularly.
The Most Important Thing I Can Tell You About These Programs
These programs are not well advertised.
The people who benefit from them are the ones who work with a mortgage advisor who knows they exist, checks eligibility on every client, and knows how to structure a file to take advantage of them.
When you come to me as a first-time buyer, I run every available program against your specific situation before we decide on a financing structure.
State programs, county programs, city programs.
I check all of them.
In most cases, there is something available that can meaningfully reduce the cash you need to close.
There is money set aside by the state of California and by your county specifically to help people like you buy a home.
It does not require you to be in poverty.
It does not require a perfect application.
It just requires working with someone who knows where to find it and how to access it.
That is exactly what I do.