California First-Time Home Buyer Programs 2026: Complete Guide
California has some of the most generous first-time buyer programs in the country. In 2026, you can get up to 20% of the purchase price for your down payment through the Dream For All program, plus additional grants, tax credits, and city-specific assistance. Here's every program available and how to qualify.
Dream For All
Up to 20%
MyHome
3.5% DPA
MCC Tax Credit
20%/year
Local Programs
15+ Cities
Quick Overview: California First-Time Buyer Programs
- • CalHFA Dream For All: Up to 20% of purchase price for down payment (shared appreciation loan)
- • CalHFA MyHome Assistance: Up to 3.5% of purchase price as deferred-payment loan
- • CalHFA Zero Interest Program (ZIP): Up to 3% for closing costs, 0% interest
- • Mortgage Credit Certificate (MCC): 20% federal tax credit on mortgage interest ($2,000+/year)
- • City Programs: LA (LIPA), SF (DALP), San Diego (HomeShare), Sacramento, and 12+ more
1. CalHFA Dream For All Shared Appreciation Loan
Program Details
- ✓Amount: Up to 20% of purchase price
- ✓Type: Shared appreciation loan (no monthly payments)
- ✓Repayment: When you sell, refinance, or transfer
- ✓Appreciation share: 20% of home value increase
- ✓First mortgage: CalHFA FHA or Conventional
Eligibility Requirements
- •First-time buyer (no ownership in last 3 years)
- •Income: ≤ 150% of county AMI
- •Credit score: 660+ (FHA) or 680+ (Conventional)
- •Homebuyer education course required
- •Primary residence only, must live there
Real Example: $600,000 Home in Los Angeles
Dream For All provides $120,000 (20%) for your down payment. You get a CalHFA first mortgage for $480,000. No monthly payments on the $120,000. When you sell in 7 years for $750,000 ($150K appreciation), you repay $120,000 + 20% of $150,000 = $150,000 total. You keep the remaining $600,000 in sale proceeds.
2026 Alert: Dream For All funding is limited and opens in waves. Previous rounds sold out within hours. Sign up for CalHFA notifications and have your pre-approval ready before the next opening.
2. CalHFA MyHome Assistance Program
Max Assistance
3.5%
of purchase price
Interest Rate
0%
simple interest
Repayment
Deferred
until sale/refi/transfer
MyHome provides a deferred-payment subordinate loan of up to 3.5% of the purchase price (or appraised value, whichever is less) for down payment and/or closing costs. No monthly payments — the loan is repaid when you sell, refinance, or transfer the title.
Key advantage over Dream For All: No shared appreciation. You repay only the original loan amount, regardless of how much your home appreciates. Available year-round (not limited funding waves).
3. CalHFA Zero Interest Program (ZIP)
ZIP provides up to 3% of the loan amount specifically for closing costs. It's a zero-interest, deferred-payment second loan that requires no monthly payments. Repayable when you sell, refinance, or transfer.
Can be combined with: Dream For All OR MyHome. Example: MyHome (3.5% for down payment) + ZIP (3% for closing costs) = 6.5% total assistance on a $500,000 home = $32,500 in assistance with zero monthly payments on either.
4. Mortgage Credit Certificate (MCC) Tax Credit
How MCC Works
- Tax credit: 20% of annual mortgage interest paid
- Maximum credit: $2,000 per year
- Duration: Life of the loan (as long as you live there)
- Type: Dollar-for-dollar federal tax credit (not a deduction)
Example Savings
$400,000 loan at 6.5% = $26,000/year in interest
MCC credit = 20% × $26,000 = $5,200
Capped at $2,000/year = $2,000 tax credit
Over 10 years = $20,000+ in tax savings
Pro tip: MCC can be combined with CalHFA down payment assistance programs AND the standard mortgage interest deduction. You deduct 80% of your mortgage interest on Schedule A, and take the 20% MCC as a direct tax credit. Find CalHFA-approved lenders who can process MCC applications.
California First-Time Buyer Income Limits 2026
| County / Area | Max Income (1-2 person) | Max Income (3+ person) | Max Purchase Price |
|---|---|---|---|
| Los Angeles County | $191,000 | $219,650 | $765,000 |
| San Francisco County | $260,000 | $299,000 | $1,149,825 |
| San Diego County | $186,000 | $213,900 | $817,500 |
| Sacramento County | $153,000 | $175,950 | $580,000 |
| Orange County | $210,000 | $241,500 | $1,149,825 |
| Santa Clara (San Jose) | $260,000 | $299,000 | $1,149,825 |
| Riverside County | $153,000 | $175,950 | $580,000 |
| Alameda County | $225,000 | $258,750 | $1,149,825 |
| Fresno County | $120,000 | $138,000 | $450,000 |
| Kern County (Bakersfield) | $110,000 | $126,500 | $400,000 |
Income limits based on CalHFA 2026 guidelines using area median income (AMI). Limits may vary by specific program. Check CalHFA.ca.gov for the most current figures.
Find CalHFA-Approved Lenders Near You
Not all lenders offer CalHFA programs. Compare approved lenders to find the best rate + maximum assistance.
City-Specific First-Time Buyer Programs in California
Los Angeles
Up to $140,000LIPA (Low Income Purchase Assistance)
Forgivable loan for low-to-moderate income buyers in LA city limits. Combined with CalHFA programs. Income limits apply. Must live in home 30+ years for full forgiveness.
San Francisco
Up to $500,000DALP (Down Payment Assistance Loan Program)
Deferred loan for up to 35% of purchase price. For households earning up to 175% AMI. Below-market interest rate. Must be first-time buyer and complete homebuyer education.
San Diego
Up to $250,000HomeShare San Diego
Shared equity model similar to Dream For All. For households earning up to 120% AMI. Available through participating lenders. Must live in home as primary residence.
Sacramento
Up to $60,000SHRA First-Time Buyer Program
Deferred-payment second loan for down payment and closing costs. For households earning up to 80% AMI. Must complete 8-hour homebuyer education course.
San Jose / Santa Clara
Up to $200,000Empower Homebuyers SCC
Deferred-payment loan up to 20% of purchase price. For households earning up to 120% AMI in Santa Clara County. Shared appreciation model.
Oakland / Alameda
Up to $210,000AC Boost
Down payment assistance for first-time buyers in Alameda County. Up to 24% of purchase price. Income limits based on 120% AMI. Shared appreciation repayment.
How to Apply for California First-Time Buyer Programs
Complete Homebuyer Education
All CalHFA programs require completing a HUD-approved homebuyer education course. eHome America and Framework are popular online options ($99). Takes 6-8 hours. You'll receive a certificate valid for 1 year.
Get Pre-Approved with a CalHFA-Approved Lender
Not all lenders participate in CalHFA programs. You MUST use a CalHFA-approved lender. There are 200+ approved lenders statewide. Get pre-approved to know your budget and which programs you qualify for.
Choose Your Program Combination
Work with your lender to select the best combination. Most buyers pair Dream For All OR MyHome with ZIP for closing costs, plus MCC for ongoing tax credits. Your lender will help you maximize assistance.
Find Your Home and Make an Offer
Shop within the purchase price limits for your county. Include your CalHFA financing in your offer. Some sellers prefer conventional offers, but strong pre-approval letters help.
Complete Closing
CalHFA loans add 1-2 weeks to the typical closing timeline. Budget 45-60 days total. Your lender handles the CalHFA paperwork. You'll sign additional documents for the assistance programs at closing.
Frequently Asked Questions
What programs are available for first-time home buyers in California 2026?
What is the income limit for California first-time home buyer programs?
How does the CalHFA Dream For All program work?
Can I combine California programs with FHA or VA loans?
When does Dream For All funding open in 2026?
Related Guides
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Sarah Mitchell
VA & FHA Loan Specialist · NMLS #389201
Sarah has 12+ years of experience helping first-time buyers navigate California's complex assistance programs. She has helped over 300 California families secure down payment assistance through CalHFA and local programs.