What Is Down Payment Assistance?

The biggest obstacle for most first-time homebuyers isn't qualifying for a mortgage — it's saving enough for the down payment. In Southern California, where median home prices range from $450,000 to over $1 million, even a 3.5% down payment can mean saving $15,000 to $35,000 or more.

Down payment assistance (DPA) programs provide funds to help cover your down payment and sometimes closing costs. These programs are designed to help low-to-moderate income buyers achieve homeownership.

Types of Assistance

• Grants: Money you don't have to repay (least common)
• Forgivable Loans: Start as a loan but can be forgiven after living in the home 3–5 years (most common)
• Deferred Payment Loans: No monthly payment required; repaid when you sell, refinance, or pay off first mortgage
• Low-Interest Loans: Below-market interest rates with monthly payment required

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Major California Statewide Programs

CalHFA MyHome Assistance Program

The California Housing Finance Agency (CalHFA) offers the most widely used program in California.

How It Works:

• Provides up to 3.5% of purchase price
• Zero interest deferred loan
• No monthly payment
• Repaid when you sell, refinance, or pay off first mortgage

Eligibility:

• First-time homebuyer (or haven't owned in 3 years)
• Must occupy as primary residence
• Meet income limits (varies by county)
• Complete homebuyer education course

2026 Income Limits (approximate):

• Orange County: $142,800 (1–2 person), $183,150 (3+ person)
• Riverside County: $114,750 (1–2 person), $131,300 (3+ person)
• San Bernardino County: $112,200 (1–2 person), $128,400 (3+ person)

CalHFA Zero Interest Program (ZIP)

• Up to $50,000 or 4% of purchase price (whichever is less)
• Zero interest subordinate loan
• Deferred payment
• Only with CalHFA first mortgage

CalHFA Extra Credit Teacher Home Purchase Program

For California teachers, administrators, and classified staff. Additional down payment assistance with more favorable terms.

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Federal Down Payment Assistance Programs

FHA Loans with Low Down Payment

FHA loans require only 3.5% down with a 580+ credit score. Down payment assistance can be combined with FHA loans.

VA Loans (Veterans)

VA loans require 0% down for eligible veterans and active military. No mortgage insurance required.

USDA Loans (Rural Areas)

USDA loans offer 0% down in eligible rural and suburban areas. Some Southern California areas qualify — check eligibility at USDA.gov.

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County and City Programs

Orange County

• Orange County Housing Authority first-time homebuyer assistance
• City of Anaheim down payment assistance for city employees

Riverside County

• Riverside County Housing Authority first-time homebuyer programs
• Down payment and closing cost assistance with income limits

San Bernardino County

• San Bernardino County Housing Authority first-time buyer assistance
• Individual city programs in San Bernardino, Fontana, and Rancho Cucamonga

Note: County and city programs often have limited funding and may not always be available. Check current status before planning.

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How to Qualify for Down Payment Assistance

Common Requirements:

• First-time homebuyer (most programs)
• Income limits (typically 80–120% of area median income)
• Credit score minimum (usually 620–680)
• Homebuyer education course completion
• Primary residence only

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Common Myths About DPA Programs

Myth 1: "They're Only for Very Low-Income Buyers" Reality: Many programs serve moderate-income buyers. Income limits are often 80–120% of area median income.

Myth 2: "It's Free Money You Never Repay" Reality: Most are deferred loans repaid when you sell. Only some grants and forgivable loans never require repayment.

Myth 3: "The Application Is Too Complicated" Reality: Your lender handles most paperwork. You mainly need income verification and homebuyer education completion.

Myth 4: "It Will Make My Offer Less Competitive" Reality: In many cases, sellers don't know you're using DPA. Your offer looks like any other financed offer.

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Work with a DPA-Experienced Agent

Finding and using down payment assistance programs can be complex. You need a real estate agent who understands available DPA programs, works with DPA-approved lenders, and can guide you through the process.

Contact Jose Cordova Homes — call (909) 715-3800 or reach out online.

This article is for informational purposes only. Program terms, income limits, and availability change regularly. Last Updated: February 2026.

Jose Cordova serves buyers across Orange County, Riverside County, and San Bernardino County. Se habla español.