What is the best first-time home buyer program in California?

For most California first-time buyers, the best starting program is the CalHFA MyHome Assistance Program, which provides up to 3.5% of the purchase price in down payment or closing cost assistance as a deferred, 0% interest second mortgage, forgiven after 3 years of occupancy. The MyHome program can be combined with a CalHFA first mortgage (FHA, VA, USDA, or Conventional) and stacked with county and city programs, which makes it the most flexible state-level option. For buyers in the Bay Area, San Francisco's Below Market Rate (BMR) program and Oakland's First-Time Homebuyer program can provide $50,000 to $200,000 in down payment assistance, which is more than the CalHFA amount. For buyers in Los Angeles, the city's LIPA (Low Income Purchase Assistance) program provides up to $110,000 in deferred assistance. The right program depends on your county, your income, your profession (some programs target teachers, firefighters, and first responders), and whether the home is in a specific city with its own program.

How much down payment do I need in California?

The minimum down payment in California depends on the loan type. FHA loans require 3.5% down with a 580 FICO, conventional loans require 3% to 5% down with a 620 to 740 FICO, VA loans require 0% down for eligible veterans, and USDA loans require 0% down in eligible rural areas. The first-time home buyer programs reduce or eliminate the out-of-pocket down payment by providing deferred second mortgages that cover the down payment and closing costs, which means an eligible first-time buyer can buy a $700,000 home with $0 out of pocket if they qualify for the CalHFA MyHome program plus a participating county program. The catch is that the second mortgage is typically due on sale, refinance, or end of the affordability period, and the forgiven portion of the assistance may be taxable income in some cases. The right way to think about down payment assistance is that it shifts the down payment from your savings to a future repayment, not that it eliminates the cost.

What are the income limits for CalHFA?

The CalHFA income limits vary by county and household size, and the 2026 limits range from $100,000 (low-cost counties) to $250,000+ (high-cost counties like San Francisco, San Mateo, Santa Clara). The current limit for your household can be looked up on the CalHFA website by county and household size, and the limits are updated annually based on HUD area median income. As a rough guide, a 4-person household in Los Angeles County can earn up to about $180,000 and still qualify for the CalHFA first mortgage; a 4-person household in San Francisco can earn up to about $245,000. The income limit applies to the household, not to the borrower alone, which means a household with two earners can qualify for higher limits than a single earner with the same combined income. The first-time home buyer program also has a 3-year first-time buyer requirement (no ownership in the last 3 years) and a primary residence requirement (must live in the home).

Can I combine CalHFA with a county or city program?

Yes, and stacking programs is the right way to maximize the down payment assistance. The CalHFA MyHome program is explicitly designed to be combined with county and city programs, and most California counties have a program that can be stacked. The most common stack is CalHFA first mortgage + CalHFA MyHome + city or county down payment assistance, which can provide $30,000 to $200,000 in total assistance. The right way to start is to look up the city and county program where the home is located, because most programs are geographically restricted. The California Housing Finance Agency maintains a list of participating jurisdictions on the CalHFA website, and most county housing authorities publish their own program details. The loan officer at a CalHFA-approved lender can also walk through the stacking options for a specific property.

What credit score do I need for a California first-time home buyer program?

The minimum credit score depends on the loan program. FHA loans require a 580 FICO for the 3.5% down option, and some CalHFA-approved FHA lenders will go to 620 for the CalHFA first mortgage. Conventional loans require 620 to 740 FICO, with the CalHFA conventional program requiring 680 in most cases. VA loans are more flexible, with no formal FICO minimum but most lenders wanting 620 or higher. The credit score is one of three qualification factors, and the other two (debt-to-income ratio and down payment) matter as much. The right way to think about credit scores is that 740+ gets you the best rates, 680 to 739 is competitive, 620 to 679 is workable but with higher rates, and below 620 is FHA-only or requires significant credit repair before applying. CalHFA also has a separate program (the CalHFA Self-Help program) for buyers who work with a HUD-approved counseling agency, and the credit requirements for the self-help program are more lenient.

Are CalHFA loans forgivable?

The CalHFA MyHome down payment assistance is a 0% interest, deferred second mortgage that is forgiven after 3 years of owner-occupancy, and the forgiveness is prorated if you sell or refinance before the 3-year mark (you pay back a percentage of the assistance based on how long you lived in the home). The CalHFA School Teacher and Employee Assistance Program (STEAP) is a fully forgivable grant, not a loan, which is the better structure for teachers and school employees. The Cal-Vet loan is a separate program for veterans and is structured as a purchase money mortgage, not a forgivable grant. The forgiveness of the MyHome loan is not taxable income for federal tax purposes, but California has been inconsistent on whether it is taxable at the state level, so check with a tax advisor before you sell or refinance. The right way to think about CalHFA MyHome is that the 3-year occupancy requirement is a commitment, and selling before the 3-year mark triggers a partial repayment that should be in your planning.

First-Time Home Buyer Programs California 2026: Full List

California is one of the hardest states in the country to save for a down payment, with a median home price of around $800,000 statewide in 2026 and pushing $1.3 million in San Francisco and San Mateo. The state and the major cities have responded with a stack of first-time home buyer programs that can reduce or eliminate the out-of-pocket down payment, and the right program depends on your county, your income, your profession, and whether the home is in a specific city with its own program. The CalHFA (California Housing Finance Agency) operates the state-level programs, the counties and cities operate the local programs, and the federal programs (FHA, VA, USDA, Fannie Mae HomeReady, Freddie Mac Home Possible) are available in every county. The right way to maximize the down payment assistance is to stack the programs — CalHFA first mortgage, CalHFA MyHome down payment assistance, plus the city or county program where the home is located.

Program details, income limits, and assistance amounts cited are drawn from the 2026 CalHFA program guides, HUD's California resource listings, and the published program details of the major county and city programs as of publication — verify with the issuing agency or a CalHFA-approved lender before you apply, because program details change annually and some programs are paused or modified mid-year based on funding.

California First-Time Buyer Programs 2026 at a Glance

The table below summarizes the major first-time home buyer programs available in California in 2026. The right program depends on your county, your income, and whether the home is in a participating city.

Program	Type	Assistance	Forgiveness	Notes
CalHFA MyHome	State DPA	Up to 3.5% of price	Deferred, forgiven after 3 years	Stackable with most city/county programs
CalHFA Conventional	First mortgage	First mortgage, low rate	Standard loan	620+ FICO, conventional
CalHFA FHA	First mortgage	First mortgage, low rate	Standard loan	580+ FICO, FHA-backed
CalHFA VA	First mortgage	First mortgage, low rate	Standard loan	For veterans, VA-backed
CalHFA USDA	First mortgage	First mortgage, low rate	Standard loan	Rural areas, USDA-backed
CalHFA STEAP	State grant	~$10,000-$15,000	Forgivable grant, no repayment	For teachers, school employees
GSFA OpenDoors	County DPA	Up to 5% of price	Forgiven after 3 years	Forgivable second mortgage
Cal-Vet	State loan	First mortgage	Standard loan	For veterans
LA LIPA (city)	City DPA	Up to $110,000	Deferred, due on sale/refi	For LA City employees + low income
SF BMR (city)	Below market	Discounted unit price	Resale-restricted	Income-eligible, lottery

How First-Time Home Buyer Programs Work in California

California first-time home buyer programs come in three forms: state programs (operated by CalHFA), local programs (operated by cities and counties), and federal programs (FHA, VA, USDA, Fannie, Freddie). The state and local programs provide down payment assistance, which is typically structured as a deferred second mortgage at 0% interest, forgiven after a 3 to 5 year occupancy period. The federal programs provide the first mortgage with low down payment requirements and competitive rates. The most common stack is a CalHFA first mortgage (FHA, VA, or Conventional) plus CalHFA MyHome down payment assistance plus a city or county program where the home is located.

The programs have three main requirements. First, the first-time buyer requirement: the borrower must not have owned a home in the last 3 years (this is the standard federal definition, and CalHFA follows it). Second, the income limit: the household income must be below the county-specific limit, which ranges from $100,000 in low-cost counties to $250,000+ in high-cost counties for a 4-person household. Third, the primary residence requirement: the home must be the borrower's primary residence, and the borrower must occupy it within 60 days of closing. The programs also have purchase price limits, which vary by county and are tied to the FHA conforming loan limits in the area.

CalHFA Programs (State Level)

CalHFA MyHome Assistance Program

CalHFA MyHome is the most popular CalHFA program, and for most first-time buyers it is the right starting point. The program provides up to 3.5% of the purchase price (capped at a maximum dollar amount that varies annually) in down payment or closing cost assistance, structured as a deferred, 0% interest second mortgage. The second mortgage is forgiven after 3 years of owner-occupancy, and the forgiveness is prorated if you sell or refinance before the 3-year mark. The MyHome program can be combined with a CalHFA first mortgage (FHA, VA, USDA, or Conventional) and with most city and county programs, which makes it the most flexible state-level option. The right role for MyHome is as the foundation of the stack — start with MyHome, then layer the city or county program on top.

CalHFA First Mortgages (Conventional, FHA, VA, USDA)

CalHFA offers first mortgages through the major federal programs, with CalHFA providing a low interest rate supplement on top of the standard FHA, VA, USDA, or Conventional rate. The interest rate supplement is meaningful in high-rate environments (the 2023 to 2024 CalHFA rate was often 0.25% to 0.50% below the standard market rate for the same loan), and smaller in low-rate environments. The conventional program requires a 680+ FICO and a 5% down payment, the FHA program requires 580+ FICO and 3.5% down, the VA program requires veteran eligibility and 0% down, and the USDA program requires the home to be in an eligible rural area and 0% down. The right first mortgage depends on your credit profile, your military service, and whether the home is in a USDA-eligible area.

CalHFA School Teacher / Employee Assistance Program (STEAP)

STEAP is a fully forgivable grant of $10,000 to $15,000 (the exact amount varies by year) for teachers, school administrators, and other school employees who are first-time buyers in California. The grant is not a loan, so there is no repayment requirement. The eligibility is restricted to current employees of K-12 public schools, community colleges, and some charter schools, and the buyer must also use a CalHFA first mortgage. The grant can be stacked with MyHome. The right role for STEAP is as a top-up for eligible school employees, because the grant is better structured than a forgivable second mortgage (no proration, no repayment).

Cal-Vet Home Loan

Cal-Vet is a separate program operated by the California Department of Veterans Affairs, and it provides home loans to eligible veterans at competitive rates with low or no down payment. The Cal-Vet loan is structured as a purchase money mortgage, not a forgivable grant, and the rates are typically 0.25% to 0.50% below the standard VA loan rate. The eligibility is broader than the federal VA program, and includes some National Guard members and reservists. The right role for Cal-Vet is as an alternative to the federal VA loan for eligible California veterans.

County and City Programs

GSFA OpenDoors Program

The Golden State Finance Authority (GSFA) OpenDoors program is a county-level program that provides up to 5% of the purchase price in down payment assistance as a forgivable second mortgage. The program is available in most California counties, and the forgiveness is structured as 20% per year of occupancy, so the loan is fully forgiven after 5 years. The income limits are higher than the CalHFA limits in some counties, which makes OpenDoors a better fit for moderate-income buyers. The right role for OpenDoors is as an alternative to CalHFA MyHome in counties where the OpenDoors assistance amount is higher or the income limits are more flexible.

City of Los Angeles — LIPA and MIPA

The City of Los Angeles operates the Low Income Purchase Assistance (LIPA) program, which provides up to $110,000 in down payment assistance for low-income buyers, and the Moderate Income Purchase Assistance (MIPA) program, which provides up to $50,000 for moderate-income buyers. Both programs are deferred, 0% interest second mortgages, due on sale, refinance, or change of use. The LIPA program requires a household income at or below 80% of the LA area median income, and the MIPA program requires a household income at or below 150% of AMI. The right role for LIPA and MIPA is as the primary down payment assistance for buyers in the City of Los Angeles (note: not the County of Los Angeles, which has separate programs).

San Francisco — Below Market Rate (BMR)

San Francisco's BMR program sells selected newly-built units at below-market prices to income-eligible first-time buyers, with the discount ranging from 20% to 50% off the market price. The program is operated as a lottery, and the units are restricted to buyers who meet the income requirements and intend to occupy the home as a primary residence. The resale of a BMR unit is restricted to other income-eligible buyers, which means the buyer captures the discount but not the full appreciation. The right role for the BMR program is as the right choice for buyers who can win the lottery and who are willing to accept the resale restriction in exchange for a meaningful price discount.

Other County and City Programs

Most major California counties and cities operate their own first-time home buyer programs, and the right move is to check the city and county websites for the specific property's jurisdiction. Notable programs include Oakland's First-Time Homebuyer program, San Diego's First-Time Homebuyer program, Sacramento's SHRA program, Santa Clara County's First-Time Homebuyer program, and San Mateo County's Habitat for Humanity program. The assistance amounts range from $10,000 to $200,000, and most are deferred, 0% interest second mortgages forgiven after 3 to 5 years. The right role for these programs is as the third layer of the stack — CalHFA first mortgage, CalHFA MyHome, then the local program.

Federal Programs

FHA Loan

The FHA loan is the most common first-time buyer loan, and it requires 3.5% down with a 580 FICO. The FHA insures the loan, which makes lenders willing to offer the low down payment and the relaxed credit requirements. The FHA loan is the foundation of most CalHFA first mortgage stacks. The right role for the FHA loan is as the right first mortgage for buyers with 580 to 679 FICO, or with limited down payment savings.

VA Loan

The VA loan is for eligible veterans, active duty service members, and some surviving spouses, and it requires 0% down with no mortgage insurance. The VA loan is the most generous first-time buyer loan in the US market, and it is the right first mortgage for eligible veterans. The right role for the VA loan is as the first mortgage for eligible veterans who can use the CalHFA VA program in addition to CalHFA MyHome.

USDA Loan

The USDA loan is for homes in eligible rural areas (which includes many California exurbs and small towns), and it requires 0% down with a 620+ FICO. The USDA loan is the right first mortgage for buyers in rural California who are willing to live outside the major metros. The CalHFA USDA program is available in most rural counties.

Fannie Mae HomeReady and Freddie Mac Home Possible

HomeReady and Home Possible are conventional loans with 3% down and flexible income calculations (the lender can count non-borrower household income toward the qualification, which helps in multi-generational households). The programs are the right first mortgage for buyers with 620+ FICO who want a conventional loan but do not have a large down payment. The right role is as an alternative to FHA for buyers who want a conventional loan with a low down payment.

Down Payment Assistance vs Mortgage Credit Certificates

Down payment assistance (DPA) is the more common form of California first-time buyer help, and it provides cash at closing that covers the down payment and closing costs. The alternative is a Mortgage Credit Certificate (MCC), which provides a federal tax credit of 10% to 20% of the annual mortgage interest, which is worth $2,000 to $5,000 a year in tax savings for a typical California mortgage. The MCC is more valuable over the long term but provides no cash at closing, which is why most first-time buyers in California prefer DPA. CalHFA offers both forms, and the right choice depends on whether you need cash at closing (DPA) or long-term tax savings (MCC).

Income Limits and Eligibility

CalHFA income limits are published annually by county and household size, and the 2026 limits range from $100,000 in low-cost counties to $250,000+ in high-cost counties for a 4-person household. The income limit applies to the household, not to the borrower alone, which means a household with two earners can qualify at higher combined incomes. The income limit is also adjusted for household size, with each additional household member adding roughly $8,000 to $15,000 to the limit depending on the county. The first-time buyer requirement (no ownership in the last 3 years) is the standard federal definition, and CalHFA follows it. The primary residence requirement is also standard: the home must be the borrower's primary residence, occupied within 60 days of closing.

How to Apply

The right way to apply is to find a CalHFA-approved lender (the CalHFA website has a lender search tool) and start the conversation with the loan officer. The loan officer will pre-qualify you for a CalHFA first mortgage based on your income, credit, and the home's location, and will then walk through the MyHome and the city/county program eligibility. The application process takes 30 to 60 days from pre-qualification to closing, and the most common cause of delay is the buyer's inability to find a home in the participating jurisdictions. The right time to start is 6 to 12 months before you plan to close, because the pre-qualification, the home search, and the closing process each take time. The CalHFA website also has a list of HUD-approved housing counseling agencies, which provide free pre-purchase counseling and can help with credit and down payment planning.

Bottom Line

The best first-time home buyer program in California in 2026 depends on your county and your income. For most buyers, the right starting program is the CalHFA MyHome Assistance Program, which provides up to 3.5% of the purchase price in deferred, forgiven-after-3-years down payment assistance, stackable with most city and county programs. The right first mortgage is the FHA (580+ FICO, 3.5% down), VA (0% down for veterans), or Conventional (620+ FICO, 5% down), through CalHFA. For high-cost cities, the right additional program is the local down payment assistance (LIPA in LA, BMR in SF, county programs in most other metros). The right way to maximize the assistance is to stack the programs — CalHFA first mortgage + CalHFA MyHome + city or county program — and to start the application 6 to 12 months before you plan to close. Verify your specific income limit and program eligibility with the issuing agency or a CalHFA-approved lender, because program details and funding levels change annually and some programs are paused mid-year. The right first-time home buyer program is the one that matches your county, your income, and your profession, not the one with the highest assistance amount.

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Written by

Fazlur RahmanAI, Entrepreneurship, EdTech

Fazlur Rahman is the founder of Tutorsbot, building AI-powered tools for learning and career growth. He writes about applying AI in real products and the practi… Read more

Fazlur Rahman is the founder of Tutorsbot, building AI-powered tools for learning and career growth. He writes about applying AI in real products and the practical side of building an ed-tech startup.