First-Time Home Buyer Programs in California (2026)

Buying your first home in California is expensive, but several state and federal programs can dramatically reduce the upfront cost. Many can be stacked with each other and with standard FHA or conventional financing. Here's a clear map of what's available.

Who Counts as a "First-Time Home Buyer"?

Most programs define it as anyone who hasn't owned a home in the past three years. So if you owned a home five years ago and have been renting since, you can usually re-qualify as a first-time buyer.

CalHFA: California's State Programs

The California Housing Finance Agency (CalHFA) runs several programs designed for first-time and lower-to-moderate-income buyers. The most common include:

• CalHFA Conventional Loan Program: competitive conventional financing for first-time buyers
• CalHFA FHA Loan Program: CalHFA-backed version of the FHA loan
• MyHome Assistance Program: deferred-payment junior loan that can help with down payment and/or closing costs
• CalHFA Dream For All: shared-appreciation loan (when funding is available)

Eligibility usually depends on income limits (which vary by county), purchase price limits, and completing a HUD-approved homebuyer education course.

Down Payment Assistance Programs

Beyond CalHFA, many California cities and counties offer their own down-payment-assistance programs, Los Angeles, San Francisco, San Diego, and most of the Bay Area each have programs with varying eligibility, income limits, and structures (grants, deferred loans, or forgivable loans). We help borrowers identify what's available in their specific zip code.

Federal Programs Available to First-Time Buyers

FHA loans (3.5% down, flexible credit) and VA loans (0% down for eligible military) are not limited to first-time buyers, but they're heavily used by them. USDA loans offer 0% down in eligible rural areas.

Mortgage Credit Certificate (MCC)

Available in some California counties, an MCC lets you claim a federal tax credit for a portion of the mortgage interest you pay each year. The savings can be hundreds to thousands annually, and the certificate stays valid for the life of the loan.

How to Stack Programs

The right strategy often combines several pieces, for example, an FHA first mortgage, a CalHFA MyHome second to cover the down payment, and an MCC for tax savings on top. We map these stacks for buyers every day; the savings can be substantial.

Homebuyer Education Counts

Most assistance programs require completing a HUD-approved homebuyer education course. The course is usually free or low-cost, takes a few hours online, and includes practical information that's genuinely useful for first-time buyers.