Down Payment Assistance in California

I’m Michael DiVita (DRE #01372066 | NMLS #241655), owner of DiVita Home Finance (DRE #01818285 | NMLS #323700) in Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. I’m known as a creative mortgage broker: when a bank says no, I find the lender and the loan structure that can say yes. Layering assistance correctly — the right first mortgage, the right second, the right order — is where most first-time buyers need help. Call (800) 239-1103.

California’s main down payment assistance programs in 2026 are CalHFA MyHome (a deferred loan of up to 3.5% of the price with a CalHFA FHA loan, or 3% with CalHFA conventional), CalHFA’s ZIP closing-cost loan (2% or 3% of the loan with CalPLUS), the Dream For All shared appreciation loan (up to 20%, max $150,000, for first-generation buyers when funded), GSFA Platinum (up to 5.5% statewide, including repeat buyers), and city programs such as Los Angeles LIPA and San Francisco DALP. Most are deferred loans, not free grants.

California Down Payment Assistance at a Glance

CalHFA: Who Qualifies

• First-time homebuyer: no ownership interest in a principal residence in the past three years.
• Primary residence only.
• Income limits by county. New limits took effect June 30, 2026, ranging from about $192,000 to $325,000 for most CalHFA programs and $153,000 to $310,000 for Dream For All, depending on county. All borrowers’ income counts.
• No purchase price limit. CalHFA dropped its sales price limits in 2020; the first mortgage still has to fit FHA or conforming loan limits.
• Credit and debt: CalHFA’s FHA, VA and USDA loans require a 640 minimum score and allow up to 45% debt-to-income.
• Homebuyer education for at least one first-time borrower.

MyHome Assistance

A deferred-payment junior loan — no monthly payment, repaid when you sell, refinance or pay off the first mortgage. It can be used for down payment or closing costs and must be paired with a CalHFA first mortgage (FHA, VA, USDA or conventional). On a $650,000 purchase with CalHFA FHA, 3.5% is $22,750.

CalPLUS with ZIP

CalPLUS FHA and CalPLUS Conventional carry a slightly higher first-mortgage rate in exchange for the Zero Interest Program (ZIP), a deferred, zero-interest loan of 2% or 3% of the first mortgage for closing costs. CalPLUS can also be combined with MyHome.

Dream For All

Up to 20% of the price (capped at $150,000) with no monthly payment, repaid with the original amount plus up to 20% of the home’s appreciation (up to 15% for households at or below 80% of area median income). It’s paired only with the Dream For All Conventional first mortgage. The 2026 application window ran February 24 – March 16, 2026. Details: Dream For All guide.

GSFA Platinum

The Golden State Finance Authority’s Platinum program provides up to 5.5% of the first mortgage for down payment and/or closing costs anywhere in California, with FHA, VA, USDA or conventional first mortgages. It’s open to first-time and repeat buyers, which makes it the usual answer for someone who owned a home recently. GSFA publishes a 640 minimum score for some options and allows debt-to-income up to 50%, with county income limits.

Despite how it’s often marketed, Platinum isn’t simply a free grant. Depending on the option, the assistance is a repayable second loan, a deferred zero-interest second, or a second loan combined with a smaller gift portion. Read the terms of the specific option before you choose.

City and County Programs

• City of Los Angeles — LIPA: up to $161,000 for down payment, closing costs and acquisition; 0% interest, no monthly payments, with a shared appreciation clause. For first-time buyers up to 80% of area median income, with a maximum purchase price of $956,465.
• San Francisco — DALP: a silent second of up to $500,000 in recent rounds for first-time buyers up to 200% of area median income, repaid with a share of appreciation proportional to the loan. Selection is by lottery, with separate tracks for SFUSD educators and police, fire and sheriff’s employees.
• Marin County and other cities: many jurisdictions offer below-market-rate (BMR) homeownership units or small assistance loans with their own waitlists. Funding opens and closes, so check current availability before counting on it.

Local programs usually require their own approved lenders, education and waiting periods — build that time into your plan.

How Programs Stack

1. CalPLUS FHA + ZIP + MyHome: MyHome covers the 3.5% down payment and ZIP helps with closing costs. The trade-off is a higher first-mortgage rate.
2. CalHFA FHA + MyHome + seller credit: a standard CalHFA rate with the seller paying part of the closing costs.
3. GSFA Platinum + FHA or conventional: for repeat buyers, or buyers who don’t fit CalHFA.
4. City program + CalHFA or GSFA: possible in some cities; each program’s lien-position and combined loan-to-value rules decide what can be layered.
5. Dream For All + your own funds or a gift: covers much of the down payment; closing costs still have to come from somewhere.

I’ll price each combination side by side. A bigger assistance package with a higher rate isn’t always the better deal if you’ll keep the loan for a long time.

Grant or Loan?

Most California assistance is a deferred loan: no payments now, repaid when you sell, refinance or pay off the first mortgage. Some local programs are forgivable after a set period, and some carry an appreciation share. True no-strings grants are uncommon. Always ask: Is it a lien? When is it due? Is there an appreciation share? What happens if I refinance?

Over the Income Limit or Not a First-Time Buyer?

• GSFA Platinum for repeat buyers within its limits.
• Gift funds from family — Fannie Mae and FHA allow the entire down payment from an acceptable donor. See gift funds for a down payment.
• Low down payment loans without assistance: FHA at 3.5%, conventional at 3% (loans up to $832,750) or 5% (high-balance), VA and USDA at 0%. See how much down payment you need.
• Employer programs: some employers offer homebuying benefits; ask HR.
• Veterans: VA loans need no down payment, and California’s CalVet program is another option to compare.

Marin and Other High-Cost Counties

CalHFA limits are set by county, so higher-cost counties have higher income limits. Because assistance is a percentage of the price, the dollars scale with the price, but the first mortgage still has to fit FHA or conforming limits — $1,249,125 in Marin, San Francisco and the other ceiling counties. In Marin, assistance tends to work best on condos and in the more affordable parts of Novato and San Rafael. Many buyers here combine an FHA or conventional loan with a family gift.

Frequently Asked Questions

What down payment assistance is available in California in 2026?

CalHFA MyHome (up to 3.5% with CalHFA FHA or 3% with CalHFA conventional), CalHFA ZIP closing-cost assistance with CalPLUS loans, Dream For All (up to 20%, max $150,000, when funded), GSFA Platinum (up to 5.5%), and city programs such as Los Angeles LIPA and San Francisco DALP.

Who qualifies for CalHFA assistance?

First-time buyers (no ownership in three years) buying a primary residence, within CalHFA’s county income limits, who complete homebuyer education. CalHFA’s FHA, VA and USDA loans require a 640 minimum credit score and allow up to 45% debt-to-income.

What are CalHFA’s income limits in 2026?

Limits effective June 30, 2026 range from about $192,000 to $325,000 by county for most CalHFA programs, and $153,000 to $310,000 for Dream For All. I’ll look up the exact limit for your county.

Does CalHFA have a purchase price limit?

No. CalHFA removed sales price limits in 2020. Your first mortgage still has to fit FHA or conforming loan limits for the county.

Is down payment assistance a grant?

Usually not. Most programs are deferred loans repaid when you sell, refinance or pay off the first mortgage, and some include an appreciation share. GSFA Platinum options are structured as second loans, some with a partial gift.

Can I get assistance if I’ve owned a home before?

CalHFA requires that you haven’t owned a home in the past three years. GSFA Platinum is open to repeat buyers, and VA loans have no first-time requirement.