Down payment help in California isn't limited to a basic grant or an FHA loan. Several assistance programs work quietly in the background, layering on top of a first mortgage to cover down payment and closing costs, and many buyers never hear about them from a bank loan officer. Because funding levels, income limits, and eligibility rules change frequently, this guide focuses on what each program does and points you to the official source for current figures.
The California Housing Finance Agency (CalHFA) offers the MyHome Assistance Program, a deferred-payment junior loan for down payment and closing costs. As of September 2026, CalHFA provides up to 3.5% of the purchase price or appraised value (whichever is lower) when paired with an FHA first mortgage, or up to 3% when paired with a conventional, VA, or USDA first mortgage. Repayment is deferred until the home is sold, refinanced, or paid off, with 1% simple interest accruing on the balance. This program pairs with a CalHFA first mortgage, so buyers need to qualify for both together. Current percentages and county income limits are published on CalHFA's MyHome Assistance Program page.
The Zero Interest Program can be layered on top of MyHome to help cover closing costs specifically, generally in the 2% to 3% range when paired with a CalPLUS first mortgage. It carries no interest and, like MyHome, is deferred until the home is sold or refinanced. Because ZIP is tied to specific CalPLUS loan products rather than offered on its own, availability depends on which first mortgage a buyer qualifies for. Full program details are on CalHFA's CalPLUS FHA program page.
Note on Older CalHFA Programs: You may encounter older articles mentioning CalHFA's Forgivable Equity Builder Loan. Its original funding was fully committed in late 2022, so buyers should not assume it is currently available and should confirm directly with CalHFA before counting on it.
The Golden State Finance Authority (GSFA) Platinum Program is a statewide down payment and closing cost assistance option that, unlike CalHFA's programs, isn't restricted to first-time buyers. The program offers assistance of up to 5% of the loan amount, subject to current program requirements, structured as either a non-repayable grant (paired with a slightly higher first-mortgage rate) or a repayable second mortgage (paired with a lower rate). GSFA doesn't set its own income limits for FHA, VA, or USDA loans, but it does publish county-specific income limits for conventional loans, so eligibility still depends on loan type and county. Details and current limits are available on GSFA's Platinum Program page.
Many California cities and counties run their own homebuyer assistance programs independent of state offerings, and these change often as local funding is allocated and exhausted. Rather than naming specific city programs that may no longer be active, the most reliable approach is to check directly with your county's housing authority or the California Department of Housing and Community Development (HCD), and to ask a broker who works across multiple counties which local programs currently have open funding.
An MCC doesn't provide upfront cash, but it can lower the cost of homeownership over time by letting eligible first-time buyers claim a portion of their annual mortgage interest as a direct federal tax credit rather than just a deduction, typically 20% to 40% of interest paid depending on the issuing agency. Under Fannie Mae's underwriting guidelines, some lenders can also count the MCC's estimated monthly value toward a buyer's qualifying income, which may help with debt-to-income calculations, but this depends on whether the specific loan program and issuing housing finance agency permit it. Ask your broker whether the MCC issuer in your county allows income counting before relying on it to qualify.
While most attention goes to urban and suburban programs, California has USDA-eligible areas, including parts of the Central Valley and northern counties. USDA loans require no down payment for qualifying buyers and often carry competitive rates. Eligibility is determined by the property's exact location, not general impressions of an area, so check the USDA property eligibility map directly before ruling this option out.
Many of these programs require pairing specific first mortgages with specific assistance products, and not every lender participates in every program. A mortgage broker who regularly works across CalHFA, GSFA, MCC issuers, and local housing authorities can identify which combinations you actually qualify for, rather than leaving you to piece together information from sources that may be out of date. This is especially valuable since funding for several of these programs opens and closes throughout the year.
If you're a first-time buyer in California, it's worth a conversation before assuming standard financing is your only path. Contact our team to review which programs you may qualify for based on your income, location, and target purchase price. You can also learn more about our FHA loan options if a government-backed loan fits your situation better than a state assistance program.
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