Here's one of the most common things I hear from first-time buyers: "I just don't have enough saved for a down payment." And often, when I ask whether they've looked into down payment assistance programs, the answer is some version of "I didn't know those were a thing."
They are very much a thing. California has some of the most robust first-time buyer assistance programs in the country, and millions of dollars go unused every year simply because buyers don't know to ask.
For most programs, a first-time buyer is defined as someone who has not owned a primary residence in the past three years. If you owned a home years ago, sold it, and have been renting since — you may qualify as a first-time buyer all over again.
The California Housing Finance Agency (CalHFA) offers the MyHome Assistance Program — a small second loan (typically up to 3.5% of the purchase price) for down payment or closing costs. The loan is deferred until you sell, refinance, or pay off your first mortgage.
Dream For All provides up to 20% of the purchase price toward the down payment. When you sell or refinance, CalHFA receives the same percentage of appreciation it contributed. This program has gone through several rounds of funding — when funds are available, it can be a meaningful option in high-cost California markets.
Many California cities and counties have their own down payment assistance funds — some offering $25,000 to $100,000 or more. Availability varies widely, funding runs out, and programs open and close. The only reliable way to know what's currently available in your area is to ask a knowledgeable local mortgage broker.
USDA loans offer 100% financing with no down payment required in areas designated as rural or suburban — which includes a significant portion of California beyond the major coastal cities. Income limits apply.
If you've served in the military, a VA loan should be one of the first things you discuss. No down payment, no PMI, and competitive rates. One of the most valuable and underutilized benefits available.
The most important thing I can tell you about assistance programs is this: don't rely on something you read online six months ago. Ask your broker directly, and ask them recently.
If you've been putting off buying because you're not sure you have enough saved, it's worth having a real conversation. Reach out and let's look at your situation together.
