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Updated · Mike Certo, NMLS #260555

California First-Time Home Buyer Guide

California first-time buyers face the highest home prices in the country alongside one of the most robust DPA program menus. CalHFA MyHome, Dream For All, ZIP, MCC, plus city and county programs make California financing workable when buyers understand which program fits their scenario.

First-time buyer loan types in California

  • FHA: 3.5% down, 580+ FICO published (620+ practical lender overlay). Pairs with CalHFA MyHome and similar DPA.
  • Conventional 97: 3% down, 620+ FICO. Pairs with several DPA programs.
  • VA: Zero down for eligible veterans. California has strong veteran population, especially around military bases.
  • USDA: Zero down for USDA-eligible rural California areas. Eligibility map is narrower than buyers expect — most coastal and major metro areas excluded.

CalHFA programs (the headline)

  • CalHFA MyHome: Up to 3.5% of purchase price as a deferred-payment second mortgage. Pairs with FHA, VA, USDA, or conventional first mortgage. Income limits by county.
  • CalHFA Dream For All: Shared appreciation program providing up to 20% down payment assistance. Lottery-based selection. Borrower repays original DPA + share of property appreciation at sale/refinance. Income limits apply.
  • CalHFA ZIP (Zero Interest Program): Up to 3% deferred-payment second mortgage at zero interest for closing costs.
  • CalHFA MCC (Mortgage Credit Certificate): Converts a portion of mortgage interest into a federal tax credit each year. Federal tax credit, not cash assistance.

City and county DPA

Beyond CalHFA, several California cities and counties offer their own DPA programs. Local programs typically don't combine with CalHFA — you pick one DPA program per transaction.

One DPA per transaction

Most California DPA programs do not combine with another DPA. CalHFA MyHome doesn't combine with a city DPA program. Dream For All doesn't combine with MyHome. You select ONE assistance program to pair with your first mortgage.

County fit check

California county pricing varies dramatically: Bay Area and Los Angeles County buyers face purchase prices that exceed many DPA program purchase-price caps. Inland Empire, Central Valley, and Sacramento area buyers fit DPA programs more cleanly. Verify the program purchase-price cap against your target home price.

Next step

20-minute call. Bring county, household income, FICO ballpark, FTHB status. We map your top 2-3 California program fits.

FAQ

What's the difference between MyHome and Dream For All?

MyHome is a deferred-payment second mortgage up to 3.5% of purchase price. Dream For All is a shared-appreciation program providing up to 20% down payment; borrower repays original DPA + a share of property appreciation at sale/refinance. Dream For All is lottery-based.

Can I combine CalHFA MyHome with a city DPA program?

Generally no. You select one DPA program per transaction. Most California DPA programs don't combine with each other.

Are there income limits on California DPA?

Yes — CalHFA programs have county-specific income limits. National programs (Chenoa, Arrive, Essex) typically have no income limits.

Can I use California DPA in the Bay Area or Los Angeles?

Yes, but purchase-price caps may not accommodate Bay Area or Los Angeles purchase prices. Higher-cost counties have higher caps but luxury segments still exceed program limits.