One of the biggest barriers to homeownership in California is the down payment. With median home prices well above $700,000 in most metro areas, even a 3.5% down payment can require $25,000 or more in cash — before closing costs. The good news: California has more down payment assistance programs than almost any other state, and many buyers don’t know they exist. Here’s your 2026 guide.
CalHFA MyHome Assistance Program
The California Housing Finance Agency’s MyHome program provides a deferred-payment junior loan equal to the lesser of 3.5% of the purchase price or appraised value. The funds can be used for down payment or closing costs. Repayment is deferred until you sell, refinance, or pay off your first mortgage — so you pay nothing extra monthly. Income and purchase price limits apply.
CalHFA Zero Interest Program (ZIP)
ZIP provides closing cost assistance as a deferred-payment junior loan at zero interest. It works in conjunction with CalHFA first mortgages and can be combined with MyHome to address both down payment and closing costs simultaneously.
CalHFA Dream For All Shared Appreciation Loan
When funding is available, Dream For All provides up to 20% of the purchase price as a down payment loan. The trade-off: CalHFA shares in 20% of the home’s future appreciation when you sell or refinance. This program has been extremely popular and funding rounds close quickly — program availability and terms may change, so check with your lender for current status.
GSFA Platinum Program
The Golden State Finance Authority’s Platinum program provides a grant (not a loan) of up to 5% of the loan amount for down payment and closing costs. Grants don’t need to be repaid, making GSFA Platinum one of the most powerful assistance programs available. Compatible with FHA, VA, USDA, and conventional loans.
GSFA OpenDoors Program
OpenDoors provides down payment assistance as a 30-year deferred loan with no monthly payments. Income limits are more flexible than many programs, and it works with multiple loan types including FHA and conventional.
Mortgage Credit Certificate (MCC)
An MCC converts a portion of your annual mortgage interest into a federal tax credit — up to $2,000 per year. This isn’t cash upfront, but it permanently reduces your federal tax liability for as long as you live in the home. It can also be used to increase your qualifying income for the mortgage itself, improving the loan amount you can access.
Local County and City Programs
Many California counties and cities offer their own assistance programs, often with more generous terms than statewide options:
- Marin County: First-time buyer programs with down payment assistance
- San Francisco: DALP (Down Payment Assistance Loan Program) offering up to $375,000 in assistance for qualifying buyers
- Los Angeles: LIPA program with up to $140,000 in assistance
- Sacramento: City-specific programs for first-time buyers
These local programs are frequently income-limited, have restricted funding, and open and close on unpredictable schedules. Working with an experienced lender who monitors these programs is key to accessing them when they’re available.
Combining Multiple Programs
The real power of California’s assistance landscape is in combining programs. It’s common to layer a CalHFA first mortgage with MyHome for down payment plus ZIP for closing costs plus an MCC for ongoing tax savings — effectively reducing your upfront cash requirement to near zero while also lowering your effective monthly cost.
Income and Purchase Price Limits
Most programs have limits that vary by county and household size. In high-cost Bay Area counties, the limits are significantly higher to reflect local conditions. Your loan advisor can check current limits for your specific situation.
How to Access These Programs
Down payment assistance programs are accessed through approved lenders — you cannot apply directly to CalHFA or most local agencies. Apply online or contact DiVita Home Finance to find out which programs you qualify for and how to maximize your benefits.
