Down Payment Assistance Programs in California (2026)

Last updated 05/22/2026 by

Ante Mazalin

Edited by

Andrew Latham

Fact checked by

Andy Lee

Summary:

California down payment assistance runs from statewide CalHFA programs covering up to 3.5% of the purchase price to city-level grants that can reach $500,000. The right program depends on where you’re buying and how much you earn.

Most programs are deferred silent seconds with no monthly payments, but several carry shared appreciation terms that give the funding agency a percentage of your future profit.

CalHFA MyHome: Up to 3.5% (FHA) or 3% (conventional) of the purchase price as a deferred second mortgage at 1% simple annual interest, available statewide through CalHFA-approved lenders.
California Dream For All: Up to 20% of the purchase price, capped at $150,000, disbursed through a randomized lottery to first-generation, first-time buyers; the 2026 cycle closed March 16, 2026.
Los Angeles LAHD: Two city programs, LIPA (up to $161,000 for buyers at or below 80% AMI) and MIPA (up to $115,000 for 81–120% AMI), both structured as 0% shared appreciation loans with no monthly payments.
San Francisco DALP: Up to $500,000 as a shared appreciation silent second, available to households up to 200% AMI through an annual lottery that typically runs March through June.
Alameda County AC Boost: Up to $210,000 for buyers earning under 100% AMI, structured as a shared appreciation deferred loan for households living or working in Alameda County.
CalHFA MCC: A Mortgage Credit Certificate converting 15% of annual mortgage interest into a direct federal tax credit for the life of the loan, stackable with CalHFA first mortgage programs.

California’s down payment assistance landscape is one of the most layered in the country.

The state runs its own programs through the California Housing Finance Agency (CalHFA), 58 counties and dozens of cities run independent programs on top of that, and the assistance amounts, especially in high-cost metros, can reach figures that would be unthinkable in most other states.

The tradeoff for large assistance amounts is often a shared appreciation structure: rather than charging interest, the program claims a percentage of the home’s future appreciation when you sell.

California consistently ranks among the most generous states on the national list of down payment assistance programs by state, largely because of local government funding in its largest metros.

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Statewide Down Payment Assistance Programs in California

CalHFA runs the primary statewide assistance programs. All of them require a CalHFA-approved lender. CalHFA does not originate loans directly. You can find a participating lender at calhfa.ca.gov.

Program	Maximum Assistance	Structure	First-Time Buyer	Income Limit
CalHFA MyHome (FHA)	3.5% of purchase price	Deferred, 1% simple interest	Yes	Varies by county
CalHFA MyHome (Conventional)	3% of purchase price	Deferred, 1% simple interest	Yes	Varies by county
CalPLUS FHA + ZIP	2–3% of loan amount (closing costs)	Deferred, 0% interest	Yes	Varies by county
CalPLUS Conventional + ZIP	2–3% of loan amount (closing costs)	Deferred, 0% interest	Yes	Varies by county
California Dream For All	20% of purchase price or $150,000	Shared appreciation	Yes (first-gen required)	Varies by county
CalHFA MCC	15% of annual mortgage interest	Annual tax credit	Yes	Varies by county

CalHFA MyHome Assistance Program

MyHome is CalHFA’s standard down payment and closing cost assistance program, available alongside any CalHFA first mortgage. It provides a deferred second mortgage equal to the lesser of the appraised value or purchase price, structured as a silent second with no monthly payments.

For FHA first mortgages, MyHome can cover up to 3.5% of the purchase price or appraised value. For conventional loans, the ceiling drops to 3%. The interest rate is 1% simple interest per year, not compounded, and the entire balance plus accrued interest is due when the home is sold, refinanced, or the first mortgage is paid off.

Eligibility basics:

Must be a first-time homebuyer (no ownership interest in any property in the prior three years)
Must occupy the property as a primary residence
Income cannot exceed CalHFA’s county-specific limits (visit calhfa.ca.gov for the current year’s tables. Limits in LA County run to roughly $211,000 for larger households); for a breakdown of how income limits work across assistance programs, see down payment assistance income limits explained
Must complete a HUD-approved homebuyer education course
Must use a CalHFA-approved first mortgage and lender

MyHome can be layered with the CalHFA Mortgage Credit Certificate, but it cannot be stacked with Dream For All on the same transaction.

CalPLUS FHA and CalPLUS Conventional with ZIP

The CalPLUS programs pair a slightly higher-rate CalHFA first mortgage with the Zero Interest Program (ZIP), a closing cost assistance second mortgage. ZIP provides either 2% or 3% of the first loan amount to cover closing costs, with 0% interest and deferred repayment until sale, refinance, or payoff.

The trade-off is a marginally higher interest rate on the first mortgage compared to CalHFA’s standard FHA or conventional loans. Buyers who are cash-constrained on closing costs but can absorb a slightly higher rate will find ZIP useful; buyers who have closing costs covered and want the lowest rate should use the standard CalHFA programs with MyHome instead.

Both CalPLUS FHA and CalPLUS Conventional carry the same income limits and first-time buyer requirement as MyHome. ZIP assistance is counted toward total assistance and must comply with the layering rules set by CalHFA’s guidelines for that loan type.

California Dream For All Shared Appreciation Loan

Dream For All is CalHFA’s largest and most competitive program. It provides up to 20% of the purchase price, capped at $150,000, as a second mortgage with no interest and no monthly payments. In exchange, CalHFA receives a share of the home’s appreciation when you sell or refinance.

How the repayment works: When you sell, you repay the original Dream For All balance plus CalHFA’s share of appreciation. That share equals the same percentage of appreciation as the assistance represented of the original purchase price. If Dream For All covered 20% of your purchase price and your home appreciated by $100,000, CalHFA receives the original loan back plus $20,000 (20% × $100,000). Total repayment is capped at 2.5 times the original loan amount.

2026 program status: The 2026 application window opened in early 2026 and closed on March 16, 2026 at 5:00 PM PDT. CalHFA funded approximately 2,000 households through a randomized lottery rather than a first-come, first-served queue. Applications for the 2027 funding round will open when CalHFA secures additional state appropriations—check calhfa.ca.gov/dream for announcements.

Eligibility requirements (stricter than MyHome):

First-time homebuyer (no ownership in prior three years)
First-generation homebuyer: the applicant and their spouse or domestic partner have not had an ownership interest in a principal residence in the prior seven years, AND the applicant’s parents do not currently own a home, or the applicant was previously placed in foster care
Income limits vary by county. In Los Angeles County the limit runs to approximately $168,000; in Santa Clara County it reaches roughly $309,000
Must use a CalHFA-approved first mortgage; cannot be combined with CalHFA MyHome on the same loan
Must complete a homebuyer education course

Dream For All is the highest-value statewide assistance available to eligible buyers, but the lottery structure means approval is not guaranteed regardless of income or qualifications. Buyers who do not win should apply for MyHome as the fallback statewide option.

CalHFA Mortgage Credit Certificate (MCC)

CalHFA’s MCC is not a loan—it is a federal income tax credit. The certificate converts 15% of your annual mortgage interest into a dollar-for-dollar reduction in your federal income tax liability for as long as you hold the loan and live in the home.

On a $500,000 loan at 6.5% interest, annual interest in year one is roughly $32,000. Fifteen percent of that is $4,800 in direct tax credit—money that reduces what you owe the IRS, not just what you deduct. The remaining 85% of mortgage interest is still deductible as usual.

The MCC is available statewide through CalHFA-approved lenders and carries the same first-time buyer and income limit requirements as the loan programs. It can be combined with CalHFA first mortgages and the MyHome second mortgage. The credit stays in effect for the life of the original loan. If you sell the home, the MCC is forfeited and cannot be transferred. If you refinance, the MCC can be reissued by your lender. CalHFA permits reissuance up to six times, so the credit is not automatically lost on refinance.

Local Down Payment Assistance Programs in California

California’s local programs often dwarf the statewide offerings in dollar terms—particularly in high-cost metros where a 3% down payment on a $900,000 home still leaves a $27,000 gap. The programs below are the largest city and county programs currently active. Availability and funding depend on annual appropriations, so confirm current status with each program directly before beginning an application.

Los Angeles: LIPA and MIPA (LAHD)

The Los Angeles Housing Department (LAHD) runs two parallel purchase assistance programs that together cover the full income spectrum of first-time buyers in the city. Both are 0% interest, deferred, shared appreciation loans—no monthly payments, with repayment and a portion of appreciation due at sale, title transfer, or when the first mortgage is repaid. Maximum purchase price for both programs is $930,622.

Low Income Purchase Assistance (LIPA) — households at or below 80% AMI:

Maximum assistance: up to $161,000
Interest: 0%
Structure: deferred, shared appreciation (city shares appreciation proportional to the assistance-to-purchase-price ratio)
Minimum FICO: 660
Minimum buyer contribution: 1% of purchase price from own funds
Reservations released in batches on a published schedule; contact LAHD before attempting to apply

Moderate Income Purchase Assistance (MIPA) — households at 81–120% AMI:

Maximum assistance: up to $115,000
Interest: 0%
Structure: deferred, shared appreciation on the same terms as LIPA
Minimum FICO: 660
Minimum buyer contribution: 1% from own funds
2025 AMI limits range from $84,851–$121,400 for a 1-person household; confirm 2026 limits at housing.lacity.gov or (213) 808-8800

Both LIPA and MIPA require an 8-hour homebuyer education course from an LAHD-approved provider. Eligible applicants who apply for either program may also be required to apply for the City’s Mortgage Credit Certificate, which provides a 20% annual mortgage interest tax credit on top of the down payment assistance.

Loans are reserved through participating lenders, not directly through LAHD. The loan reservation schedule is published on housing.lacity.gov—slots are limited per round and typically fill quickly on reservation dates.

San Diego: SDHC and County Programs

The San Diego Housing Commission (SDHC) runs income-tiered purchase assistance for buyers within the City of San Diego, while the County of San Diego runs a separate program for unincorporated areas and smaller cities within the county.

SDHC Low-Income Program (≤80% AMI):

Deferred loan up to 19% of the purchase price
3% simple interest, deferred until sale or refinance
Additional $10,000 closing cost grant (no repayment)
Must be a first-time homebuyer; must occupy as primary residence

SDHC Middle-Income Program (80–150% AMI):

Deferred loan of $40,000
Additional $10,000 closing cost grant
First-time buyer required; income limit 150% AMI

County of San Diego (≤120% AMI):

Deferred loan up to 17% of the purchase price
Available in unincorporated areas and cities without their own programs

Contact SDHC directly at (619) 578-7788 or sdhc.org for current funding availability; both the city and county programs are periodically paused when annual allocations are exhausted.

San Francisco: Downpayment Assistance Loan Program (DALP)

San Francisco’s DALP is the highest-dollar local DPA program in the state, offering up to $500,000 as a 0% interest, deferred shared appreciation loan. There are no monthly payments; the loan plus San Francisco’s share of appreciation is repaid when you sell, transfer title, or refinance.

Key terms:

Maximum loan: $500,000
Interest rate: 0%
Structure: shared appreciation—SF MOHCD receives a percentage of appreciation equal to the loan-to-purchase-price ratio
Income limit: up to 200% AMI (one of the most permissive limits of any DPA program in California)
Residency requirement: applicant must not have owned property in San Francisco in the prior three years (ownership elsewhere in California is not disqualifying)
Minimum buyer contribution: 1% of the purchase price (can come from gifts)
Closing cost: $668 fee at closing

Lottery structure: DALP is not first-come, first-served. Applications are accepted during a set window each year (typically March through June), and winners are selected by a randomized lottery. The 2025 cycle opened March 4, 2025, closed June 2, 2025, and the lottery was held June 25, 2025. The 2026 cycle dates were not confirmed as of May 2026. Check sf.gov/apply-downpayment-loan-buy-market-rate-home or sign up for MOHCD email alerts for 2026 opening announcements.

SF MOHCD also runs an Educators-DALP and a First Responders DALP (FRDALP) with preference given to San Francisco teachers and public safety workers, respectively. These run on separate application timelines from the general DALP.

Alameda County and Oakland: AC Boost and Oakland MAP

Buyers in the East Bay have two stacked opportunities: the Alameda County AC Boost program (which covers the full county) and the City of Oakland Mortgage Assistance Program (MAP), which is specific to Oakland residents and workers.

AC Boost (Alameda County):

Maximum loan: $210,000 for households ≤100% AMI; $160,000 for households 100–120% AMI
Structure: shared appreciation, 0% interest, deferred—no monthly payments
Eligibility: must currently live or work in Alameda County, or have been displaced from Alameda County in the last 10 years
Minimum buyer contribution: 3% of purchase price from own funds
First-time buyer required (no ownership in prior three years)
Preference points for first responders and educators, including licensed childcare providers
Applications accepted through acboost.org; funding opens and closes based on Measure A1 bond allocations

Oakland Mortgage Assistance Program (MAP):

Maximum loan: up to $75,000 for households ≤80% AMI; up to $50,000 for households 80–120% AMI (calculated as 30% and 20% of purchase price, respectively)
At least one adult household member must be an Oakland resident, Oakland worker or student, or an Oakland displacee
Minimum buyer contribution: 3% of purchase price from own funds
First-time buyer required

AC Boost and Oakland MAP can potentially be layered for Oakland buyers who qualify for both—contact each program directly to confirm current stacking rules and funding status. The FHA loan limit in Alameda County is $1,249,125 for 2026, allowing buyers to purchase at higher price points while still using FHA financing.

Sacramento: SHRA CalHome Program

The Sacramento Housing and Redevelopment Agency (SHRA) administers the CalHome First-Time Homebuyer Mortgage Assistance Program for buyers within the City and County of Sacramento. CalHome provides a deferred, 0% interest loan for down payment and closing cost assistance, with no monthly payments required while the home is owner-occupied.

Eligibility and terms:

Income limit: at or below 80% AMI for Sacramento County
First-time homebuyer required (no ownership in prior three years)
Property must be a single-family home, condo, townhome, or manufactured home on a permanent foundation within SHRA’s jurisdiction
Loan amounts and availability vary by funding cycle; SHRA posts weekly updates at shra.org/homebuyer-programs
Repayment is deferred until sale, refinance, or the home is no longer the primary residence

Sacramento buyers can also pair SHRA assistance with a CalHFA MCC to compound the benefit—CalHome handles the down payment while the MCC reduces annual federal tax liability for the life of the loan.

Other Ways to Lower Your Down Payment in California

Down payment assistance is one tool; loan structure is another. Several financing options reduce how much cash you need to close without relying on a local program’s availability or lottery.

FHA loans require a minimum 3.5% down payment with a credit score of 580 or higher. In California’s high-cost counties, FHA loan limits reach $1,249,125 for a single-family home (2026), making FHA viable well above median prices in most metros. Combining an FHA loan with CalHFA MyHome can reduce the cash-to-close to a fraction of the purchase price.

Fannie Mae HomeReady and Freddie Mac Home Possible both allow 3% down on conventional loans for buyers at or below 80% AMI. HomeReady has a minimum 620 FICO; Home Possible requires 660. Both allow gift funds for the full down payment and can be layered with local DPA second mortgages, including CalHFA MyHome.

VA loans require no down payment and no private mortgage insurance for eligible veterans, active-duty service members, and surviving spouses. California has one of the highest concentrations of VA loan users in the country. VA loans carry an upfront funding fee (2.15% at first use with 0% down; 3.3% on subsequent use), which can be rolled into the loan. The funding fee is waived entirely for veterans with a service-connected disability rating.

USDA loans offer 0% down for buyers purchasing in eligible rural and suburban areas. While much of coastal California does not qualify, large portions of the Central Valley, Northern California, and the Inland Empire do. Use the USDA’s online map to check property eligibility before assuming a location is ineligible.

Leasehold homeownership is a less conventional but effective path to lower entry costs, particularly in high-cost California markets. With a community land trust or leasehold structure, you purchase the home but lease the land from a nonprofit, substantially reducing the purchase price. Jubilee is one provider operating in this space. Review the trade-offs of leasehold homeownership carefully before committing—the lower entry price comes with resale restrictions that limit appreciation.

Before committing to any assistance program, it’s also worth reviewing the pros and cons of using down payment assistance—particularly for shared appreciation programs where the long-term cost depends on how much your home appreciates. For buyers whose credit is the limiting factor rather than the down payment, explore strategies for qualifying with lower credit scores. Many CalHFA programs require a 640–660 minimum FICO, and some local programs require 660.

Key takeaways

CalHFA MyHome provides up to 3.5% of the purchase price as a deferred 1% simple-interest second mortgage, available statewide for first-time buyers through any CalHFA-approved lender.
California Dream For All covers up to 20% of the purchase price (max $150,000) but requires first-generation homebuyer status and is distributed by lottery; the 2026 cycle closed March 16, 2026.
Los Angeles LAHD offers the most generous city-level DPA in Southern California, up to $161,000 (LIPA) or $115,000 (MIPA), both as 0% shared appreciation deferred loans with slot-based reservations.
San Francisco DALP provides up to $500,000, is open to buyers up to 200% AMI, and is awarded by annual lottery rather than first-come, first-served.
Alameda County’s AC Boost reaches up to $210,000 for buyers earning under 100% AMI, making it one of the highest-dollar county programs in the state outside of San Francisco.
Shared appreciation terms, where the program agency receives a share of future home value increases, are common in California’s large-dollar programs; understand the repayment formula before accepting the loan.
The CalHFA MCC converts 15% of annual mortgage interest into a direct federal tax credit for the life of the loan, and can be combined with CalHFA first mortgages and MyHome assistance.
Most programs require a first-time buyer (no ownership in prior three years), a minimum FICO score between 620 and 660, and completion of a homebuyer education course.

Frequently Asked Questions

What are the income limits for CalHFA programs?

CalHFA income limits vary by county and are updated each year when HUD releases new Area Median Income figures. In Los Angeles County, the household income cap for CalHFA programs typically runs to roughly $168,000–$211,000 depending on household size and program. In Santa Clara County, limits can reach $309,000. Check the current year’s county-specific tables at calhfa.ca.gov/homeownership/limits before assuming eligibility.

Can I use California down payment assistance if I’m not a first-time buyer?

Most CalHFA programs and local programs use HUD’s three-year lookback definition of “first-time buyer,” meaning you qualify if you haven’t had an ownership interest in a primary residence in the prior three years. If you owned a home more than three years ago and haven’t owned since, you may still be eligible. A small number of local programs, and the programs available to non-first-time buyers nationwide, do not carry this requirement at all.

How does Dream For All’s shared appreciation repayment work?

When you sell or refinance, you repay CalHFA the original Dream For All loan amount plus a share of the home’s appreciation. That share equals the percentage of the original purchase price covered by the loan. If Dream For All provided 20% of the purchase price and your home appreciated by $200,000, CalHFA receives $40,000 in appreciation (20% × $200,000) on top of the original principal. Total repayment is capped at 2.5 times the original loan amount regardless of appreciation.

Can I combine CalHFA MyHome and Dream For All on the same loan?

No. MyHome and Dream For All are both CalHFA second mortgages and cannot be layered on the same transaction. Dream For All is the higher-value alternative to MyHome for eligible first-generation buyers. Buyers who do not qualify for Dream For All or do not win the lottery should use MyHome instead.

Does San Francisco’s DALP require me to be a San Francisco resident to apply?

No—DALP does not require current SF residency. The requirement is that you have not owned property specifically in San Francisco in the prior three years. You can be a current resident of another Bay Area city, qualify by income (up to 200% AMI), and still apply for a DALP loan to purchase in San Francisco. The annual lottery is the primary gate; meeting the income and property requirements does not guarantee funding.

Can California DPA programs be used to buy a condo or townhome?

Yes, with project approval conditions. CalHFA MyHome and Dream For All can be used for condos and townhomes as long as the project meets the approval requirements of the first mortgage type (FHA-approved for CalHFA FHA loans; Fannie/Freddie approval for conventional). LA LAHD’s LIPA and MIPA programs explicitly allow single-family residences including townhomes and condominiums. Verify the specific project eligibility with your lender before entering contract on an attached property.

Ready to compare California lenders? Finding a CalHFA-approved lender and comparing rates side by side is the fastest way to see how much these programs reduce your total cost. Compare home loan lenders on SuperMoney to see rates and terms from multiple lenders in one place.

Down Payment Assistance in Other States

Programs vary significantly by state. Income limits, assistance amounts, forgiveness terms, and lender networks all differ. These guides cover verified program details for five other states.

Oregon: OHCS’s Flex Lending program provides 4–5% of the loan amount as a second mortgage paired with a fixed-rate first, and the OHCS DPA Program reaches up to $60,000 for first-time and first-generation buyers at or below 100% AMI.
New Jersey: NJHMFA provides $15,000 as a zero-interest second mortgage that becomes fully forgivable after five years of continuous occupancy.
Massachusetts: MassHousing provides $25,000 at 0% deferred, and ONE+ reaches up to $50,000 for buyers in 29 Gateway Cities.
Virginia: Virginia Housing’s DPA Grant delivers 2–2.5% of the purchase price as a true gift, never repaid. DHCD’s deferred loan reaches $50,000 for buyers at or below 60% AMI.
Florida: Florida Housing’s FL Assist provides $10,000 at 0% deferred for 30 years. Hometown Heroes reaches up to $35,000 for Florida workers. Orange County offers tiered assistance up to $70,000.

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