Down Payment Assistance

Date of Last Revision: August 8, 2026

Down payment assistance (DPA) programs provide grants, low-interest secondary loans, or forgivable funds to help home buyers cover upfront down payment and closing costs. These programs are funded by state and local housing finance agencies (HFAs), municipal governments, and non-profit organizations, and they must be paired with an approved primary mortgage.

Types of Assistance

  • Grants: Free money that does not require repayment, though availability is limited.

  • Forgivable Loans: Second-lien loans with 0% interest that are forgiven over a set period (e.g., 5 years) if you stay in the home.

  • Deferred-Payment / Silent Seconds: Loans where repayment is delayed until you sell, refinance, or pay off the primary mortgage.

  • Low-Interest Second Mortgages: Monthly payment loans taken alongside your primary mortgage to bridge the cash gap.

Common Eligibility Rules

  • First-Time Buyer Status: Many programs require you not to have owned a home in the past 3 years, though some national programs do not.

  • Income Caps: Eligibility is often restricted to households earning under a specific percentage of the Area Median Income (AMI).

  • Homebuyer Education: Most programs require completion of a certified homebuyer education workshop before closing.

  • Primary Residence: The property must be owner-occupied and used as your primary home.

Where to Find Programs

  • State Level: In California, programs like CalHFA MyHome offer deferred-payment junior loans to assist with down payments.

  • Local/County Level: Local agencies—such as the Los Angeles County Development Authority (LACDA) or local municipal housing departments—provide region-specific assistance and silent seconds.

  • National Programs: Options like the GSFA Platinum Program or National Homebuyers Fund (NHF) offer flexible assistance nationally through participating

CalHFA Government Loans (FHA): MyHome offers a deferred-payment junior loan of an amount up to the lesser of 3.5% of the purchase price or appraised value to assist with down payment and/or closing costs.

CalHFA Conventional Loans: MyHome offers a deferred-payment junior loan of an amount up to the lesser of 3% of the purchase price or appraised value to assist with down payment and/or closing costs.

Program Eligibility

Review the guidelines below for both Borrower and Property Requirements to determine if you may be eligible to apply for the MyHome Assistance Program.

Borrower Requirements

  • Be a first-time homebuyer. See the definition of a first-time homebuyer.

  • Occupy the property as a primary residence; non-occupant co-borrowers are not allowed.

  • CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.

  • Meet CalHFA income limits for this program.

*In the case of conflicting guidelines, the lender must follow the more restrictive.

Property Requirements

  • Be a single-family, one-unit residence, including approved condominium/PUDs

    • Guest houses, granny units and in-law quarters may be eligible

  • Manufactured housing is permitted

  • Condominiums must meet the guidelines of the first mortgage

*In the case of conflicting guidelines, the lender must follow the more restrictive.

Interest Rate

What is the interest rate?

Interest rates will vary depending on your financial circumstances, lender fees, and other factors. Interest rates can also change daily. We recommend that you check with a CalHFA-approved loan officer to receive an accurate rate quote for this program.

CalHFA does not lend money directly to consumers. CalHFA works through and uses approved lenders to qualify consumers and to make all mortgage loans. The fees you pay could be different depending on the lender and the program. View sample Annual Percentage Rates (APRs) here.

Homebuyer Education Requirement

CalHFA firmly believes that homebuyer education and counseling is critical to the success and happiness of a homeowner, and requires homebuyer education and counseling for first-time homebuyers using a CalHFA program.

Who has to take this Homebuyer Education and Counseling course?

Only one occupying first-time borrower on each loan transaction.

How do I take this education and counseling course?

How To Apply

How do I apply for this loan program?
Since CalHFA is not a direct lender, CalHFA mortgage products are offered through private loan officers who have been approved & trained by the CalHFA Agency. These loan officers can help you find out more about CalHFA’s programs and guide you through the home buying process.

Begin with the Mortgage Rate Finder

What documents should I have ready?
When initially the loan process, you may want to have this list of documents and information available to help answer questions that they will ask you:

  • Pay stubs

  • Bank statements

  • Employment history

  • Previous tax returns