Overview
California presents the greatest homeownership challenge of any state, with a median home price exceeding $800,000 as of early 2026. Despite these high costs, the California Housing Finance Agency provides several programs designed to help first-time buyers overcome the down payment barrier.
The Dream For All program is CalHFA's most ambitious initiative, offering up to 20% of the purchase price (capped at $150,000) as a shared appreciation loan. This means CalHFA shares in the home's future appreciation when you sell, refinance, or transfer the property. While this reduces your equity growth, it dramatically lowers the barrier to entry in a state where a 20% down payment on a median-priced home would require over $160,000 in savings. The program has been extremely popular, with funding rounds often exhausted within days.
State Programs
CalHFA FHA Loan Program
Below-market rate mortgageMyHome Assistance Program
Down payment and closing cost assistanceCalifornia Dream For All Shared Appreciation Loan
Shared appreciation loanFederal Programs Available in California
These nationwide programs can be combined with California state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in California
The MyHome Assistance Program provides a more traditional down payment assistance structure, offering up to 3.5% of the purchase price as a deferred-payment junior loan. This is a silent second mortgage with no monthly payments required until the home is sold, refinanced, or paid off. Combined with a CalHFA first mortgage, this can bring out-of-pocket costs down significantly.
California's high income tax rates (up to 13.30% for top earners) are a consideration for buyers budgeting monthly expenses. However, the state's mortgage interest deduction and property tax deductions can offset some of this burden. Property taxes are comparatively low in California due to Proposition 13, which limits annual increases to 2% of the assessed value.
California homebuyers should also explore local city and county programs, as many municipalities offer additional down payment assistance. Cities like Los Angeles, San Francisco, San Diego, and Sacramento have their own first-time buyer programs that can be layered with CalHFA offerings.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: March 30, 2026.