First-Time Homebuyer Programs in California
First-Time Homebuyer Programs in California
A Plain-Language Guide | The GO Team Real Estate
California has some of the best first-time homebuyer programs in the country — which makes sense given that the state also has some of the highest home prices. The programs exist because the gap between what people earn and what homes cost is real, and the state has tried to bridge it in several ways. Here's a plain-language overview of the main programs and how they work.
CalHFA: The Foundation of California's First-Time Buyer Support
The California Housing Finance Agency (CalHFA) is the state's primary vehicle for first-time buyer assistance. MyHome Assistance: A deferred-payment second mortgage for up to 3.5% of the purchase price toward down payment or closing costs. You pay it back when you sell or refinance — no monthly payments in the meantime. CalHFA FHA and CalHFA Conventional programs: These pair a CalHFA first mortgage with the MyHome assistance, so you can finance your down payment through the second loan. Dream For All Shared Appreciation: Up to 20% of the purchase price, max $150,000 — with no monthly payments but a shared appreciation structure at the time of sale. Demand always outpaces supply, so this program opens for short windows and fills fast.
County and City Programs
LACDA (Los Angeles County Development Authority): Provides up to $85,000 in down payment assistance for income-qualifying buyers purchasing anywhere in Los Angeles County (outside the City of LA). Structured as a silent second mortgage — no monthly payments, due when you sell or refinance. This is one of the more substantial assistance programs available in Southern California. Norwalk CalHome Program: City-specific program for buyers purchasing within Norwalk city limits. Limited funding, first-come first-served. City of LA programs: LAHD (Los Angeles Housing Department) offers its own assistance for buyers purchasing within the city of Los Angeles.
What "First-Time Buyer" Actually Means
Under most California programs, a first-time buyer is someone who hasn't owned and occupied a primary residence in the past three years. If you owned a home a decade ago but have been renting since, you may still qualify. This definition often surprises people.
How to Actually Use These Programs
The mistake most buyers make is treating assistance programs as a secondary concern — something to look into after they've found a home. That's backwards. Most programs require pre-approval through an approved lender before you make an offer. Get a lender who knows these programs before you start shopping. Complete the required homebuyer education course early. Programs open and close based on funding availability — staying current requires an agent and lender who work with these programs regularly.
Questions About Your Specific Situation?
Every buyer's situation is different. Reach out to The GO Team Real Estate Services and let's figure out exactly where you stand and what's possible for you.
THE GO TEAM / REAL ESTATE SERVICES
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