California First-Time Home Buyer Programs 2026

Most of what gets sold online as a "California first-time home buyer grant" is a second mortgage. That isn't bad news. A deferred loan at 0% or 1% simple interest can be the difference between buying this year and renting for three more. But you'll owe it back, sometimes with a slice of your home's growth in value, and that changes the math when you sell or refinance. For how these programs compare with other states and with federal loans, see our national first-time home buyer grants guide.

CalHFA and State Programs Compared

CalHFA runs 5 kinds of buyer help through private lenders, and every one of them is a loan. It doesn't lend to you directly: you apply through a CalHFA-approved loan officer, who pairs a CalHFA first mortgage with one or more of the second loans below.

Sources: CalHFA MyHome program page (opens in a new tab) and MyHome handbook (opens in a new tab); CalHFA Government Loans matrix (opens in a new tab) and Conventional Loans matrix (opens in a new tab), both updated January 1, 2026; CalHFA Dream For All page (opens in a new tab), update dated May 20, 2026; CalHFA daily rate sheet (opens in a new tab), November 3, 2026; CalHFA lender program information page (opens in a new tab).

According to CalHFA's MyHome handbook, MyHome must sit in second lien position behind a CalHFA first mortgage, and its term matches that first loan, not to exceed 30 years. ZIP and MyAccess sit in third position behind MyHome. You can't get ZIP without the CalPLUS first mortgage, and you can't get MyAccess without CalPLUS Access.

Two other CalHFA items show up in search results but aren't for most first-time buyers. The UC Shared Appreciation Loan started taking reservations on July 15, 2026, and is limited to eligible UC Santa Cruz employees. The Disaster Rebuilding Assistance Program opened for reservations on September 16, 2026, under CalHFA Program Bulletin 2026-08 (opens in a new tab), and serves homeowners whose homes were damaged or destroyed in declared disasters from January 1, 2023 through January 8, 2025.

2026 CalHFA Income Limits by County

$214,000 is the CalHFA income limit for Los Angeles County, and it's one number for your whole household, whatever its size. That's the quirk most buyers miss: CalHFA doesn't scale its limits by household size the way HUD does. According to CalHFA Program Bulletin 2026-07, dated June 25, 2026, the new limits apply to reservations received on or after June 30, 2026; earlier reservations keep the prior limits.

Sources: CalHFA 2026 Government and Conventional Income Limits and Dream For All 2026 Income Limits (opens in a new tab), effective June 30, 2026, also attached to Program Bulletin 2026-07 (opens in a new tab); home values from U.S. Census Bureau QuickFacts (opens in a new tab), 2020-2024 American Community Survey estimates.

San Francisco, San Mateo, Santa Clara, Marin and Napa share the top CalHFA limit of $325,000. The floor is $192,000, which applies in 22 mostly rural counties, from Butte and Kern to Tulare and Siskiyou.

Purchase price limits: CalHFA's Conventional Loan Programs FAQ, dated May 13, 2026, says there are no sales price limits on its conventional programs. What caps you instead is the first mortgage's loan limit: FHA county limits for CalHFA FHA, Fannie Mae limits for conventional. Per both CalHFA matrices, a first mortgage above $832,750 counts as a high balance loan with an extra fee, and high balance conventional loans are limited to 95% loan-to-value. Local programs do set price caps, shown in the city section below.

What the state help covers in your county

Grantsights analysis of the Census Bureau's 2020-2024 median home values against CalHFA's program caps shows how differently the same programs land across the state:

• MyHome on an FHA loan pays 3.5%, which is exactly the FHA minimum down payment. At the statewide median value of $734,700, that's $25,715. In Fresno County ($388,800) it's $13,608; in Santa Clara County ($1,490,600) the math says $52,171, though an FHA loan that large exceeds the high balance threshold and may exceed the county FHA limit.
• Dream For All pays the full 20% in Sacramento ($106,840 on the $534,200 median), Riverside ($111,460) and Fresno ($77,760). The $150,000 cap starts to bind on any home above $750,000. At the medians, it covers 18.0% in Los Angeles County, 15.6% in Orange, 13.8% in Alameda and 10.1% in Santa Clara.
• The Los Angeles LIPA loan of up to $161,000 equals 19.3% of the Los Angeles County median value and 16.8% of LAHD's $956,465 price cap.

The takeaway: in the Bay Area, the state programs fill a much smaller share of the gap, and local loans matter more.

City and County Programs in Los Angeles, San Diego, San Francisco, San José and Sacramento

$161,000 is the largest single loan offered by any of the five biggest city programs that are currently taking buyers. Local help is where California's real money is, but it's tied to one city, comes with price caps, and often runs in short reservation windows.

Los Angeles. According to the Los Angeles Housing Department's LIPA page (opens in a new tab), LIPA buyers need a middle FICO score of at least 660, an 8-hour homebuyer education class with counseling from an LAHD-approved provider, and at least 1% of the price from their own funds. The loan and LAHD's share of appreciation come due on sale, title transfer, first mortgage payoff, or as a balloon payment in 30 years; refinancing is allowed only under certain conditions. The 2026 LIPA income limits run from $93,300 for one person to $175,900 for eight. LAHD's MIPA page (opens in a new tab) uses the same rules for moderate incomes. Reservations come in rounds of 12 to 34 per date, so contact a participating lender before the date, not on it.

San Diego. The San Diego Housing Commission's program descriptions (opens in a new tab) are the clearest place in the state where a true grant appears. The City of San Diego low-income closing cost grant (4% of the price, up to $10,000) is forgiven, and the middle-income program's $10,000 grant is forgiven after 3 years if you still live there. The middle-income $40,000 loan isn't deferred for long: payments start in year 6 and run 120 months. One city in San Diego County, Chula Vista, has its own SDHC-run loan: up to 22% of the price, capped at $120,000, at 3% simple interest, for homes up to $807,500 (effective October 2025). City of San Diego programs cover ZIP codes beginning with 921, and buyers need a fixed-rate first mortgage, at least 3% down, and homebuyer education plus pre-purchase counseling.

San Francisco. San Francisco's DALP application page (opens in a new tab) offers up to $500,000 as a silent second with no monthly payments. You repay the principal plus a share of appreciation equal to the loan's share of the purchase price. The 2025 lottery applications closed June 2, 2025, and no 2026 window was posted on November 3, 2026. Separate DALP pools exist for SFUSD educators and first responders.

San José. The City of San José's homebuyer assistance page (opens in a new tab) doesn't run its own loan; it refers buyers to CalHFA, Housing Trust Silicon Valley and Project Sentinel's homebuyer classes. Housing Trust Silicon Valley says its countywide down payment loan (opens in a new tab), funded by the county's Measure A housing bond, is fully subscribed and sunset on June 30, 2026, so Santa Clara County buyers are left with CalHFA and lender programs for now.

Sacramento. The SHRA homebuyer programs page (opens in a new tab) lists a CalHome first-time buyer loan and a Mortgage Credit Certificate program, but the CalHome entry itself says funding has been depleted, and the income and price figures printed there are years out of date. Grantsights left those figures out. Call SHRA Homeownership Services at (916) 440-1393 to ask what's funded now.

FHA, VA and USDA Loans in California

3.5% is the minimum FHA down payment, according to HUD's FHA loans page (opens in a new tab), and it's why MyHome on a CalHFA FHA loan is so popular: MyHome's 3.5% cap matches that minimum dollar for dollar. CalHFA also offers VA and USDA first mortgages, each of which can carry a MyHome loan of up to 3%.

• VA: The VA's purchase loan page (opens in a new tab) says there's often no down payment if the price isn't above the appraised value, though a one-time funding fee may apply. CalHFA's VA loan requires a 640 score.
• USDA: The USDA Single Family Housing Guaranteed Loan Program (opens in a new tab) offers 100% financing for households up to 115% of area median income in eligible rural areas. In California that mostly means the Central Valley, the Sierra foothills and the far north.
• FHA through CalHFA: On November 3, 2026, CalHFA's rate sheet listed its standard FHA first mortgage at 6.750%.

Our USDA housing grants guide covers rural options in more depth, and the national guide compares FHA, VA and USDA side by side.

What CalHFA Doesn't Tell You on Its Program Pages

$274.19 a month is the extra principal and interest a buyer pays to get 2% ZIP on a $463,200 loan, based on CalHFA's November 3, 2026 rate sheet. CalPLUS FHA with 2% ZIP was priced at 7.625%, while standard CalHFA FHA was 6.750%. ZIP gives that buyer $9,264 at closing; the higher payments add up to about $32,900 over 10 years. That trade only makes sense if you truly can't close otherwise. For most buyers who can cover closing costs, the best bet is standard CalHFA FHA with MyHome and no ZIP; and if you expect to refinance soon, remember that a refinance makes ZIP due.

A few other things the consumer pages leave out:

• MyHome isn't free money even at 1%. The consumer page says "deferred-payment junior loan" and stops. The handbook adds that principal and simple interest are due on sale, transfer, refinance or payoff of the first loan. If you refinance when rates drop, you'll need to pay MyHome off at the same time.
• The income limit is per household, not per person. A two-earner couple in Los Angeles County with $220,000 combined income is over CalHFA's $214,000 limit, even with three kids.
• Every CalHFA second loan comes with fees. The handbooks let lenders charge processing fees of $50 on ZIP, $250 on MyHome and MyAccess, and $500 on Dream For All, on top of normal lender fees up to the greater of 3% of the loan or $3,000.
• A home warranty is required. Both CalHFA matrices require a one-year home warranty on resale purchases by first-time buyers.
• Only one online course counts. CalHFA accepts eHome's 8-hour online course (a $100 fee) or a live course through NeighborWorks America or a HUD-approved counseling agency. Other online courses such as Frameworks don't count, because they lack the one-hour, one-on-one counseling session.
• Dream For All's appreciation share is real money. On a $480,000 home with a $96,000 Dream For All loan, a sale at $580,000 means repaying $96,000 plus 20% of the $100,000 gain, or $116,000. Buyers at or below 80% AMI repay a reduced 15% share: $111,000.

Common Mistakes and Red Flags

9 years is the federal recapture window for a Mortgage Credit Certificate. The IRS instructions for Form 8828 (opens in a new tab) say that if you sell within the first 9 years after receiving an MCC or a bond-financed mortgage, you may have to repay part of the subsidy through your income tax. Ask whoever issues the MCC for the recapture notice before you close.

The most common mistake California buyers make is shopping for a house first and a program second. CalHFA and the city programs only work through their approved lenders, and the reservation has to happen after you're in contract. Other errors that cost buyers:

• Assuming Dream For All is open. It isn't. The portal closed March 16, 2026. Ads still promoting it as available right now are out of date or misleading.
• Underestimating cash to close. LAHD requires 1% of the price from your own funds, SDHC requires at least 3% down, and CalHFA requires the home warranty and education course. Budget for those even with DPA.
• Stacking programs that don't stack. ZIP only works with CalPLUS, MyAccess only with CalPLUS Access, and Dream For All only with its own conventional first loan.
• Refinancing without reading the note. MyHome and ZIP come due on a refinance. The City of Los Angeles allows refinancing only under certain conditions.

Red flags for grant scams: The FTC's government grant scams page (opens in a new tab) says no government agency will contact you to demand payment to get a grant. CalHFA's Dream For All page adds that CalHFA only asks for information through its own voucher portal. Never pay a fee to "unlock" a California down payment grant, and be wary of anyone who calls you first.

How to Apply for California Down Payment Help, Step by Step

8 hours is the length of the online homebuyer education course CalHFA accepts, and it's step one because both CalHFA and LAHD won't fund without the certificate.

1. Take homebuyer education early. Use eHome's 8-hour course or a HUD-approved agency. Only one occupying first-time borrower needs it for CalHFA. LAHD and SDHC require their own approved providers, so check before you pay twice.
2. Check your county's limit. Compare your total household income with CalHFA's county limit in the table above. If you're in Los Angeles, San Diego or San Francisco, compare it with the city limit too.
3. Find an approved loan officer. CalHFA lists approved loan officers on its site. For city programs, use LAHD's participating lender list or a lender approved by SDHC. A lender approved by both lets you layer state and city help.
4. Get pre-approved for the combined package. Ask the loan officer to price CalHFA FHA with MyHome against CalPLUS with ZIP, so you can see the rate trade-off in dollars.
5. Go into contract, then reserve. CalHFA reservations happen after a signed sales contract; the lender reserves the first loan and every CalHFA second loan in CalHFA's system.
6. Close and keep your paperwork. Save the MyHome, ZIP or city loan notes. You'll need them when you sell or refinance.

For example, a family in Sacramento County, a couple earning $110,000 a year buying a $480,000 home, is well under the county's $245,000 CalHFA limit. With a CalHFA FHA loan, MyHome covers the 3.5% down payment: $16,800. If they also take CalPLUS FHA with 2% ZIP on a $463,200 first loan, ZIP adds $9,264 for closing costs at 0%, but at November 3, 2026 rates their payment rises about $274 a month. If they sell after 10 years, they'd repay the $16,800 MyHome principal plus $1,680 in simple interest at 1.000%, along with the $9,264 ZIP balance.

If Funds Run Out or You're Denied

15 reservations is all LAHD's November 18, 2026 LIPA round offers, so many eligible buyers won't get a slot. Here's what to do if a program is closed or says no:

• Not selected for Dream For All: CalHFA's page says to work with a CalHFA-approved lender on MyHome and CalPLUS with ZIP instead. Waitlisted applicants should watch their portal account; a status can change to "Voucher Issued" if a slot opens.
• Missed an LAHD round: LIPA and MIPA rounds are listed months ahead, and the schedule is subject to change. Keep your file ready with your lender for the next date.
• Over the income limit: CalHFA's limits are high, but city low-income programs cap at 80% of area median income. Moderate-income options like MIPA or SDHC's middle-income program may fit instead.
• Denied on credit: CalHFA FHA starts at 640; conventional at 680. A HUD-approved counselor can help you plan a 6 to 12 month credit fix.

If buying isn't possible this year, our rental assistance programs guide and HUD income limits guide explain help for renters and how area median income is set. Homeowners who need repairs later can check our home repair grants guide, and our HUD HOME program guide explains the federal money behind many city down payment loans. To see other official programs you might qualify for, Grantsights' free eligibility checker points you to official routes. It doesn't hand out grants or approve home loans.

Other state guides: Texas, Florida, New York and Washington.

FAQ: California First-Time Home Buyer Programs

Is there a first-time home buyer grant in California?

Not from the state. CalHFA's help is all loans; a few local programs, like San Diego's 4% closing cost grant up to $10,000, are true grants.

How much is CalHFA MyHome?

Up to 3.5% of the price with an FHA loan, or 3% with conventional, VA or USDA.

Is Dream For All open in 2026?

No. The portal closed March 16, 2026.

What are the CalHFA income limits for 2026?

One limit per county, from $192,000 to $325,000, effective June 30, 2026.

What credit score do I need for CalHFA?

640 for FHA, VA and USDA; 680 for conventional (660 for low-income HomeReady borrowers).

Who counts as a first-time buyer?

Anyone who hasn't owned a principal residence in the past 3 years.

Does Los Angeles have a first-time buyer program?

Yes: LIPA up to $161,000 and MIPA up to $115,000, both 0% deferred loans with shared appreciation.

Do I have to pay it back?

Yes, for every CalHFA program, usually when you sell, transfer title or pay off the first mortgage.

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Sources

1. CalHFA: MyHome Assistance Program (opens in a new tab), checked November 3, 2026
2. CalHFA: MyHome Assistance Program Handbook (opens in a new tab), dated February 28, 2022
3. CalHFA: Homebuyer Programs (opens in a new tab)
4. CalHFA: CalPLUS FHA and CalPLUS Access FHA (opens in a new tab)
5. CalHFA: Government Loans Program Matrix (opens in a new tab), updated January 1, 2026
6. CalHFA: Conventional Loans Program Matrix (opens in a new tab), updated January 1, 2026
7. CalHFA: Dream For All Loan Programs Matrix (opens in a new tab), updated January 22, 2026
8. CalHFA: Government Loans Program Handbook (opens in a new tab), dated May 5, 2025
9. CalHFA: Conventional Loans Program Handbook (opens in a new tab), dated June 15, 2026
10. CalHFA: Conventional Loan Programs FAQs (opens in a new tab), dated May 13, 2026
11. CalHFA: Dream For All Shared Appreciation Loan (opens in a new tab), update dated May 20, 2026
12. CalHFA: 2026 Income Limits (opens in a new tab), effective June 30, 2026
13. CalHFA: Program Bulletin 2026-07, Updated Income Limits (opens in a new tab), June 25, 2026
14. CalHFA: Program Bulletin 2026-08, Disaster Rebuilding Assistance Program (opens in a new tab), August 26, 2026
15. CalHFA: Loan Program Information for lenders (opens in a new tab) (ADU grant status, UC Shared Appreciation Loan)
16. CalHFA: Daily Rates (opens in a new tab), as of 7:31 a.m. Pacific, November 3, 2026
17. Los Angeles Housing Department: Low Income Purchase Assistance (LIPA) (opens in a new tab), 2026 limits and reservation schedule
18. Los Angeles Housing Department: Moderate Income Purchase Assistance (MIPA) (opens in a new tab)
19. Los Angeles Housing Department: Mortgage Credit Certificate (opens in a new tab), dated April 6, 2026
20. San Diego Housing Commission: First-Time Homebuyer Program Descriptions and Guidelines (opens in a new tab), checked November 3, 2026
21. City and County of San Francisco: Apply for a Downpayment Assistance Loan (opens in a new tab)
22. City and County of San Francisco: DALP loan terms (opens in a new tab)
23. City of San José: Homebuyer Assistance (opens in a new tab)
24. Housing Trust Silicon Valley: Santa Clara County down payment loan program page (opens in a new tab)
25. Sacramento Housing and Redevelopment Agency: Homebuyer Programs (opens in a new tab)
26. U.S. Census Bureau: QuickFacts, California counties (opens in a new tab), 2020-2024 median home values
27. U.S. Census Bureau: QuickFacts, Orange, Riverside, San Bernardino, Alameda, Fresno and Contra Costa counties (opens in a new tab)
28. HUD: FHA Loans (opens in a new tab)
29. VA: Purchase Loan (opens in a new tab)
30. USDA Rural Development: Single Family Housing Guaranteed Loan Program (opens in a new tab)
31. IRS: Instructions for Form 8828, Recapture of Federal Mortgage Subsidy (opens in a new tab), revised November 2024
32. FTC: Government Grant Scams (opens in a new tab)