California State First-Time Buyer Programs: CalHFA, CalPLUS & More
California supports first-time buyers through the California Housing Finance Agency (CalHFA) and local partners. These programs can provide down payment and closing cost help that makes high prices feel much more realistic, especially for buyers with solid income but limited savings.
💰 Top California Programs (Updated November 2025)
CalHFA MyHome Assistance Program
- • Maximum Assistance: Up to 3 percent of the purchase price for down payment and closing costs
- • Income Limit: Varies by county, often 80 percent to 120 percent of area median income
- • Repayment: Deferred until you sell, refinance or pay off the first mortgage
- • Application: Through CalHFA approved lenders
CalHFA CalPLUS with ZIP
- • Structure: Fixed rate first mortgage plus a zero interest second for up front costs
- • Maximum Assistance: Up to 3 percent to 4 percent of the loan amount
- • Perfect For: Buyers with good income who need help with cash to close
- • Loan Types: Works with FHA and conventional
California Dream For All Style Shared Equity Programs
- • Maximum Assistance: Large down payment support in exchange for a share of future appreciation
- • Target Areas: High cost counties such as Los Angeles, Orange, San Diego, San Francisco and Santa Clara
- • Eligibility: First-time buyers who meet income and education requirements
- • Note: Funding windows can be limited and highly competitive
🔍 Check Your California Program Eligibility
See which CalHFA and local California programs you may qualify for based on your income, credit and county.
Check California Eligibility →Federal Programs Available in California: FHA, VA, USDA Loans
Federal loan programs work together with California assistance to cover both high cost coastal cities and more affordable inland markets. FHA, VA and USDA loans are flexible enough to pair with CalHFA help.
🏠 FHA Loans
- Down Payment: 3.5 percent minimum for buyers with at least 580 credit score
- Credit Score: Flexible underwriting for thin or newer credit files
- Mortgage Insurance: Required, but can be partially offset by lower down payment
- Perfect For: First-time buyers across California with moderate credit
🇺🇸 VA Loans
- Down Payment: Zero down payment for eligible veterans and active duty buyers
- Credit Score: Often approved around 620 with strong compensating factors
- Funding Fee: Can be financed into the loan amount
- Perfect For: Military families in markets such as San Diego, Riverside and Sacramento
🌾 USDA Loans
- Down Payment: Zero down payment in eligible rural and semi rural areas
- Location: Works best in Central Valley, far Northern California and parts of the Inland Empire
- Income Limits: Caps based on county and household size
- Perfect For: Buyers willing to look just beyond the most expensive cities
💡 California Program Stacking Strategy
You can often combine California assistance with federal loans:
- • FHA + CalHFA MyHome: 3.5 percent down plus assistance that covers most or all of that down payment
- • VA + Local Grant: Zero down loan plus a city or county grant that covers closing costs
- • Conventional + Shared Equity: Fixed rate loan plus a shared appreciation down payment support program
Work with a California lender who regularly combines these programs so you do not leave free money on the table.
Bay Area & Southern California Programs: Local Help On Top Of State Support
Large metros such as Los Angeles, San Francisco and San Diego layer their own first-time buyer programs on top of CalHFA options. These can bridge the gap between high prices and your savings.
| City or County | Program Name | Maximum Assistance | Target Group |
|---|---|---|---|
| Los Angeles | LA City First Home | Up to $40,000 assistance | Low and moderate income buyers |
| San Francisco | SF Down Payment Assistance Loan Program | Up to $375,000 shared equity support | First-time buyers in the city |
| San Diego | San Diego Homeownership Assistance | Up to $30,000 grant or low interest loan | City residents and essential workers |
| Oakland | Oakland First Time Homebuyer | Up to $25,000 assistance | First-time buyers in targeted neighborhoods |
🚨 Special Programs For California Workers
Teacher & Public Service Programs
- • Additional grant amounts for K to 12 teachers
- • Priority processing for police, firefighters and nurses
- • Some cities offer tax credits for long term residents
Workforce Housing Initiatives
- • Discounted pricing on specific developments
- • Shared equity structures with local agencies
- • Employer sponsored down payment assistance
California First-Time Buyer Eligibility Requirements
Each California program has its own income, price and credit rules. Understanding them up front helps you pick the right path and avoid surprises once you are already in contract.
💼 Income Requirements (2025)
CalHFA Programs:
- • Higher limits in the Bay Area and coastal counties
- • Moderate limits in inland metros such as Sacramento and Riverside
- • Lower but more flexible limits in rural counties
Local City Programs:
- • Often set between 80 percent and 140 percent of area median income
- • Sometimes adjusted for household size and whether you are an essential worker
📊 Credit Score Requirements
FHA Loans:
- • Minimum around 580 for 3.5 percent down with many lenders
- • Some allow lower scores with 10 percent down
- • Many successful California buyers sit in the 620 to 680 range
Conventional With Assistance:
- • Typical minimum 620 credit score
- • Better pricing if you are at 680 or above
- • Clean recent payment history matters more than one older late mark
🏠 First-Time Buyer Definition In California
Most California programs treat you as a first-time buyer if you meet any of these:
- • You have not owned a principal residence in the last three years
- • You previously owned a home but only with a former spouse
- • You are a single parent who owned only jointly in the past
- • You sold a home due to divorce, job relocation or military transfer several years ago
If you are not sure whether you qualify, a lender familiar with California programs can quickly review your history.
🎯 Check Your Eligibility For California Programs
See which state, city and federal programs may work for you based on income, credit, location and target price. Get matched with lenders who actively work with CalHFA and local grants.
Check Your Eligibility →California Housing Market 2025: High Prices And Real Opportunities
California gets headlines for high home prices, but the story is more nuanced. Inventory has improved since the peak of the pandemic frenzy, and some inland and outer ring markets still offer realistic entry points for first-time buyers.
📈 California Market Snapshot (Late 2025)
- Median Home Price: Roughly $750,000 statewide, higher in coastal metros
- 30 Year Mortgage Rate: Around 6.45 percent average for well qualified buyers
- Inventory: Improving compared with 2023 and 2024
- Days On Market: Longer in inland and suburban areas than in prime coastal zones
🎯 Markets Where First-Time Buyers Still Win
- Inland Empire: Riverside and San Bernardino with more moderate prices
- Central Valley: Stockton, Modesto and Fresno with lower entry points
- Sacramento Area: Mix of urban and suburban options with active new construction
- Outskirts Of Bay Area: Cities further from job cores that still qualify for assistance
⏰ Why 2025 Can Work For California First-Time Buyers
More Choice
More listings compared with the tightest years means less bidding war pressure in some segments.
Motivated Sellers
Some sellers are more flexible on credits and repairs, especially if they need to move for work or family.
Program Funding
State and city assistance programs remain active, and some have boosted caps to keep up with prices.
Best California Mortgage Lenders For First-Time Buyers
California has a mix of big national lenders and strong regional players. The most important factor is not the logo on the building but whether they regularly close CalHFA and city program loans for first-time buyers like you.
🏆 Lenders To Consider In California
Regional Banks With CalHFA Experience
Medium sized California banks that work closely with CalHFA and local agencies can be strong partners.
- • Familiarity with complex program paperwork
- • Local underwriters who understand California markets
- • Often more flexible on mixed income or gig worker files
National Lenders With Strong Digital Tools
Some national lenders offer excellent online applications plus dedicated teams for California borrowers.
- • Fast document upload and e signatures
- • Competitive pricing when you compare multiple quotes
- • Support for FHA, VA and conventional loan types
Credit Unions And Community Lenders
Local credit unions and community lenders sometimes offer special products for first-time buyers.
- • Relationship based underwriting
- • Special grants for members in specific counties
- • Education and counseling programs built in
🛡️ What To Ask A California Lender
When you interview lenders, ask questions like:
- • How many CalHFA or city program loans have you closed in the past year
- • Are you approved with CalHFA and my city or county programs
- • How do you help first-time buyers compare FHA, VA and conventional options
- • What is your typical timeline from pre approval to clear to close
Get quotes from at least two or three lenders and compare total costs, not just the headline rate.
🔍 Compare California Lenders & Get Quotes
Use an online marketplace to see offers from multiple California lenders in one place. Then follow up directly with the ones that best match your goals.
Compare Lender Quotes →Step-by-Step Guide: Buying Your First Home In California
The steps to buy in California look similar to other states, but there are some local twists, especially around inspections, insurance and contingencies. Here is a roadmap from first conversation to keys.
Get Pre-Approved With California Programs (Two To Four Weeks)
Start with pre approval, not house hunting. A strong pre approval letter tells California sellers that you can actually close and shows you how much you can borrow with and without assistance.
California Pre-Approval Benefits:
- • Required for most CalHFA and city programs
- • Helps you set a realistic budget before you fall in love with listings
- • Locks in a rate for 30 to 60 days in many cases
- • Gives you time to fix any credit or document issues early
Find Your California Real Estate Agent
Choose a buyer agent who knows your target neighborhoods, understands local offer norms and has experience with first-time buyers using assistance programs.
Questions To Ask A California Agent:
- • How many first-time buyers have you helped this year
- • How often do you work with CalHFA or city assistance loans
- • What typical price range do you work in
- • How competitive are offers in my target areas right now
Tour Homes And Make Offers
Tour homes that fit both your budget and program rules. In hotter areas you may need to move quickly when the right place appears.
Offer Strategy In California:
- • Consider stronger earnest money and clean contingencies in hot neighborhoods
- • Ask your agent to show you recent comparable sales so you do not overpay
- • Use seller credits to cover closing costs where possible
Inspection, Appraisal And Loan Approval
Once you are in contract, your lender orders an appraisal and you complete inspections such as general home, sewer, pest and possibly additional structural checks.
California Specific Considerations:
- • Older homes may need seismic or foundation evaluations
- • Wildfire and earthquake risk can affect insurance and approval
- • Some areas require special disclosures or reports
Close And Become A California Homeowner
At closing you sign final documents, bring your remaining funds and the county records the deed in your name.
Closing Day Checklist:
- • Confirm your final cash to close with your lender
- • Review closing disclosure numbers before signing
- • Arrange utilities and insurance to start on day one
California Closing Costs And Ongoing Expenses
High prices often grab the headlines, but closing costs, taxes and insurance are just as important for your budget. California has some unique fees and ongoing costs to plan for.
💰 Typical California Closing Costs (Late 2025)
| Cost Category | Typical Amount | Share Of Price | Who Pays |
|---|---|---|---|
| Origination And Lender Fees | $3,000 to $5,500 | Roughly 0.5 to 1.0 percent | Buyer |
| Title Insurance And Escrow | $2,000 to $4,000 | Around 0.3 to 0.6 percent | Split or negotiated |
| Recording And Transfer Fees | $500 to $1,500 | Smaller fraction of price | Buyer and seller |
| Appraisal And Inspection | $800 to $1,600 combined | Around 0.1 to 0.2 percent | Buyer |
| Estimated Total | 2 to 4 percent of price | Varies by county and loan type | Mostly buyer, some seller credits |
🏠 Ongoing Homeownership Costs In California
- Property Taxes: Typically around 0.7 to 1.1 percent of value, depending on county
- Homeowners Insurance: Higher in wildfire or earthquake prone areas
- HOA Dues: Common in condos and planned communities, often $200 to $600 per month
- Maintenance: Budget around 1 to 2 percent of home value per year over time
💡 Tax And Homeowner Benefits
- Mortgage Interest Deduction: May reduce your federal income tax bill
- Property Tax Rules: Long term owners can see slower increases due to assessment limits
- Capital Gains Exclusion: Potential tax benefit when you sell a primary residence
Insider Tips For California First-Time Home Buyers
After working with many California buyers, there are a few patterns I see over and over. These simple moves can make the difference between staying stuck and finally getting the keys.
🎯 Top Tips For California Buyers
- 1
Start With Pre-Approval And Insurance Quotes
In California it is not enough to know your loan amount. Insurance costs in wildfire or earthquake exposed areas can sharply change your real budget, so get quotes early.
- 2
Look Just One Or Two Rings Further Out
Many first-time buyers find the sweet spot in suburbs or nearby cities that still offer reasonable commutes but far better entry prices than the core hotspots.
- 3
Work With A Program Savvy Team
Your lender and agent should both be comfortable with CalHFA and city programs. That saves weeks of back and forth and helps you keep sellers confident in your file.
- 4
Focus On Payment More Than Price
In a high-cost state like California, what really matters is your monthly comfort level. It is often better to buy a slightly smaller home with a payment that lets you sleep at night.
🚨 Mistakes California Buyers Should Avoid
Common Pitfalls:
- • Shopping for homes before talking to a lender
- • Assuming you do not qualify because prices look high
- • Ignoring HOA rules and long term dues
- • Underestimating insurance and maintenance costs
Costly Errors:
- • Waiving inspections without a clear strategy
- • Overstretching on payment just to win one property
- • Failing to check whether assistance programs have waiting lists
📚 More First-Time Buyer Resources
Complete First-Time Buyer Guide 2025
Nationwide programs and strategies that work alongside California assistance.
Read More →Closing Costs Calculator 2025
Estimate your closing costs and total cash to close before you make offers in California.
Read More →Mortgage Pre-Approval Guide
Learn how to get pre-approved with confidence, even if your credit score is not perfect.
Read More →Home Inspection Guide 2025
Understand inspections, repairs and how to protect yourself as a first-time buyer.
Read More →Ready To Start Your California Home Buying Journey
California is a complex but achievable market for first-time buyers. With the right team and the right programs, you can move from watching listings on your phone to holding keys in your hand.
