California’s high prices mean the down payment — not the monthly payment — is often the biggest barrier for first-time buyers. The state’s housing finance agency, CalHFA, exists to lower that barrier with first mortgages and deferred down payment/closing cost loans. Programs change; here’s what first-time buyers should know as of 2026, plus what to verify before you apply.
Last updated: September 2026.
CalHFA First Mortgage Programs
CalHFA itself doesn’t lend — it works through approved lenders, offering 30-year fixed first mortgages for low- and moderate-income buyers. You get one of these CalHFA first loans, then pair it with a subordinate assistance loan. Common first loans:
- CalHFA FHA. An FHA-insured loan (often low down payment; good credit flexibility) packaged as a CalHFA first mortgage.
- CalPLUS FHA / CalPLUS Access FHA. Slightly higher-rate versions of the FHA loan designed to be combined with closing cost or down payment assistance.
- CalHFA Conventional. A conventional first mortgage, also available in access versions for assistance stacking.
- CalHFA USDA. A USDA-guaranteed loan in eligible rural areas — often zero-down, income-limited.
The MyHome Assistance Program
MyHome is CalHFA’s main down payment assistance program:. a deferred-payment junior loan (a “silent second”) that covers part of your down payment and/or closing costs.
- How much. Up to the lesser of 3.5% of the purchase price or appraised value on FHA loans, and up to 3% on conventional loans.
- Repayment. Deferred — you make no monthly payment on it. It comes due when you sell, refinance, pay off the first loan, or transfer the title (or upon a recorded default notice). Interest is simple interest, added over the loan’s life.
- Lien position. MyHome must sit in second lien position if layered with other assistance, and borrowers can’t receive cash back from it.
- Who qualifies. First-time homebuyers occupying the home as their primary residence, meeting the program’s credit, income,and counseling requirements. Only one occupying first-time borrower per transaction.
Closing Cost Assistance: ZIP and MyAccess
Two quieter programs help with closing costs (not the down payment:)
- ZIP (Zero Interest Program). Offered with CalPLUS loans, ZIP is a deferred, zero-interest secondary loan for closing costs.
- MyAccess. Paired with CalPLUS Access loans, MyAccess provides deferred assistance usable toward down payment or closing costs (often structured as a larger gap-filler than ZIP.
Eligibility Basics
- First-time definition. Generally, no ownership interest in a principal residence during the previous three years(california’s definition, with exceptions for some disaster victims and HUD 184 borrowers.
- Income limits. Everyone on the loan must be under the county’s income limit. 2026 CalHFA limits range from about $192,000 in lower-cost counties (like Butte) to about $322,000–$325,000 in high-cost Bay Area counties (like Alameda, Contra Costa, Marin,, and San Mateo省份).) Always pull the current income limit table for the county where the property sits.
- Homebuyer education. CalHFA requires completing approved first-time homebuyer education counseling and providing the certificate.
- Primary residence. The home must be owner-occupied; no investor co-borrowers.
Layering Local Programs
Many counties, cities,and nonprofits offer their own down payment assistance loans or grants, and CalHFA explicitly allows layering — as long as MyHome keeps second lien positionand total combined loan limits are respected. Stacking a local $15,000 grant with MyHome can meaningfully cut cash-to-close, but each program brings its own income limits, counseling,and underwriting hoops. Start the conversation with a CalHFA-approved lender, who can tell you which local programs work with the CalHFA loan stack.
Also Worth Knowing: FHA and USDA Basics
You do not have to use CalHFA to get help. FHA loans allow down payments as low as 3.5% with a 580 credit score(and 10% down belowthat,, and USDA loans can offer 0% down in eligible rural areas with income limits. CalHFA packages those same loan types with its assistance programs, but some buyers pair non-CalHFA FHA/USDA loans with local DPA programs instead. Compare quotes both ways.
Frequently Asked Questions
What is a “silent second”?
A second loan you don’t make payments on. In CalHFA programs, it’s deferred until you sell, refinance, pay off, or trigger a due date — so it doesn’t inflate your monthly payment while you live there.
Can I use CalHFA if I bought a home before?
Generally no — the program targets first-time buyers(no ownership interest in the last three years,bexcept qualifying disaster victims or special cases. If you’re returning to ownership after a 3+ year gap, ask a CalHFA-approved lender whether you meet the definition.
Do these programs add points or higher rates?
Assistance loans don’t carry points, but the paired CalPLUS loans carry slightly higher rates than standard CalHFA loans to fund the assistance. Compare the “all-in” payment: rate + deferred loan balance — not just the rate.
Where do I find income limits?
On CalHFA’s site, the current “Income Limits” table lists every county. Limits effective JuneŜ 2026 are updated periodically — use the version current when you apply.
Related Guides
Sources
- CalHFA — MyHome program handbook, CalPLUS/ZIP/MyAccess program pages, and 2026 Government & Conventional Income Limits.
- HUD / FHA — FHA down payment and credit score requirements.
- USDA Rural Development — eligibility and zero-down program rules.