Down payment assistance in California, explained

Which government programs help you buy a house in California?

Government and nonprofit down payment programs can help eligible California buyers with grants, deferred second loans, or forgivable loans. The money is usually paired with an FHA or conventional mortgage; it is not one universal free-money program. Eligibility and available funds depend on income, location, and the program's current rules.

Common questions

How do I find lenders with down payment assistance?

Start with the assistance agency's participating-lender directory, not just a lender advertising a low down payment. For CalHFA, use its official Find a Loan Officer resource and confirm that the lender can pair your chosen mortgage with the specific assistance program. Ask who reserves funds, what education is required, and what you must repay when selling or refinancing. Compare the combined payment, APR, lender fees and cash to close with a loan without assistance. Home Central Financial can review potential paths, but participation, eligibility and current funding must be confirmed for the exact program.

How much does the government help with buying a house?

There is no universal dollar amount. Some programs use a percentage of an eligible price or appraised value; others set a dollar cap. For illustration only, 3% of $500,000 is $15,000. The actual amount depends on program rules, eligibility and funding, and may be a loan that must be repaid rather than a grant.

How do I apply for government help to buy a home?

Start with the location and price of the home, then ask a program-authorized lender to check eligibility and loan compatibility. Prepare income records, bank statements, employment history and tax returns through a secure channel. Complete the required education and confirm repayment terms and a funding reservation. A consultation or prequalification does not reserve assistance funds.

Is down payment assistance a government program?

Many programs are funded by California, a city, a county, or a housing agency, while others come from nonprofits or approved lenders. The help may be a grant, deferred second loan, or forgivable loan. It is not automatically free money, and FHA is the main mortgage rather than the assistance itself. We verify the source, repayment terms, and current funding before you rely on it.

What is down payment assistance?

It's help — usually from a state or local program — that covers some or all of your down payment and sometimes your closing costs. The money can come as a grant you don't repay, or as a second loan that's deferred or forgiven over time. The exact terms depend on the program you qualify for.

Do I have to pay it back?

It depends on the program. Some assistance is a grant with nothing to repay. Others are a small second loan that sits quietly behind your main mortgage and only comes due when you sell, refinance, or pay off the home — and a few are forgiven entirely if you stay in the house long enough. We'll explain the terms of any program before you commit.

Who qualifies for help with a down payment?

Most programs are aimed at first-time buyers, though many define 'first-time' as anyone who hasn't owned a home in the last three years. There are usually income limits tied to your county, and you'll typically need to complete a short homebuyer education course. We'll check your numbers against the programs available where you're buying.

Can I combine assistance with an FHA or conventional loan?

Often, yes. Many down payment assistance programs are designed to layer on top of a standard FHA or conventional loan. We'll line up the main loan and the assistance together so the whole package works.

Is the money still available?

Program funds are limited and can run out, then get refreshed when budgets reset. Because of that, timing matters. We keep an eye on what's open and let you know honestly whether a program is funded before you count on it.

How much government help can you get to buy a home?

There is no single amount for everyone. Assistance depends on the program, income, location, price, appraisal and first mortgage. It may cover part of the down payment or closing costs, but it does not eliminate monthly payments or guarantee approval.

Illustrative example, not an offer: if a program allowed 3% assistance on an eligible $500,000 base, that would be $15,000. A $17,500 down payment plus $10,000 in closing costs would require $27,500 before assistance; subtracting $15,000 leaves $12,500 to cover. This excludes deposits already paid and other credits. Each program restricts the expenses assistance can cover.

CalHFA MyHome source reviewed October 15, 2026: it is a deferred-payment second loan, not a grant. It requires a compatible CalHFA first mortgage, primary occupancy, income eligibility and homebuyer education. Verify current terms and funding with an approved lender; Home Central Financial is a private mortgage brokerage, not a government agency, and this page does not claim approval to offer every program.

How do you apply for government homebuying help? Identify the city or county where you plan to buy. Then review eligibility with a lender authorized for that program, prepare income records, bank statements, employment history and tax returns, complete approved education, and confirm terms and a funding reservation before relying on assistance. Submit sensitive documents only through a secure channel.

If you need help with an existing mortgage, rent or emergency housing, home purchase assistance is a different service. For overdue mortgage payments, contact your loan servicer and a HUD-approved housing counseling agency. For rental or subsidized housing, contact the local housing authority; a home purchase loan application is not a substitute.