California’s home prices are some of the highest in the country, which makes the state’s homebuyer assistance programs some of the most important to understand. Between state-run programs through CalHFA, city and county grants, and federal loan options, many first-time buyers can get into a home with far less cash than they’d expect. Here’s what’s available and how Perry Johnson Mortgage Company can help you put it together.
CalHFA: California’s Primary Assistance Engine
The California Housing Finance Agency (CalHFA) doesn’t lend directly. Instead, it works through approved lenders like PJMC to offer a suite of first mortgage and down payment assistance programs designed to work together.
A CalHFA first mortgage is simply your primary home loan, originated by an approved lender like PJMC, that meets CalHFA’s guidelines and is eligible to be paired with the state’s down payment assistance programs. It can be structured as an FHA, VA, USDA, or conventional loan, and CalHFA offers versions of each with competitive, below-market interest rates for qualifying buyers. This first mortgage is the foundation everything else builds on. Programs like MyHome, ZIP, and MCC aren’t standalone loans you can get on their own; they’re benefits layered on top of a CalHFA-approved first mortgage. That’s why choosing a lender approved to originate CalHFA loans matters from the start, since it determines which assistance programs you’re even eligible to combine with your mortgage.
MyHome Assistance Program is CalHFA’s flagship down payment tool. It provides a deferred-payment junior loan of up to 3% of the purchase price or appraised value, whichever is less, to help with your down payment or closing costs. You make no payments on this loan until you sell, refinance, or pay off your first mortgage. To qualify, you’ll need to combine it with a CalHFA first mortgage, be a first-time buyer, occupy the home as your primary residence, complete a homebuyer education course, and meet CalHFA’s income limits for your county.
Dream For All Shared Appreciation Loan is California’s most talked-about program, offering up to 20% of the purchase price, capped at $150,000, toward your down payment with no monthly payments. Instead of paying interest, you repay the original loan amount plus a share of your home’s appreciation when you sell or refinance. This program requires at least one borrower to be a first-generation homebuyer, and it operates through a voucher lottery system rather than first-come, first-served. Because it’s one of the most oversubscribed programs in the state, funding rounds open and close quickly, sometimes within days. As of this writing, the most recent Dream For All application portal has closed, so a PJMC loan officer can tell you exactly when the next round opens and help you get ready ahead of time.
CalHFA Zero Interest Program (ZIP) pairs with CalPLUS first mortgages to cover closing costs, further reducing the cash you need at the table.
Mortgage Credit Certificate (MCC) is a federal tax credit that can reduce your tax bill by a set percentage of your annual mortgage interest, and it can be stacked with other CalHFA assistance for ongoing savings well beyond closing day.
CalHFA also offers FHA, VA, USDA, and conventional first mortgage options, each with its own version of the CalPLUS structure for buyers who want to pair a first mortgage with down payment or closing cost help.
City and County Assistance Programs
Beyond CalHFA, many California cities and counties run their own local assistance programs, and some of the most generous ones in the country are found here.
In Los Angeles, the LIPA (Low Income Purchase Assistance) program offers deferred down payment assistance for qualifying buyers.
San Francisco’s DALP (Down Payment Assistance Loan Program) is one of the largest local programs in the state, offering interest-free assistance that can cover a substantial share of a home’s purchase price for income-qualified buyers.
Alameda County offers its own down payment assistance based on a percentage of purchase price, with repayment structured as shared appreciation similar to Dream For All.
Sacramento, San Diego, and other major counties run their own city-level programs as well, typically administered through local housing authorities.
Because local programs vary significantly in structure, funding availability, and income limits, and because some numbers you’ll find online are inconsistent or outdated, the most reliable path is to have your PJMC loan officer verify current program details for your specific city and county before you build a strategy around them.
Federal Loan Options and VA Benefits
CalHFA’s FHA, VA, and USDA loan programs open the door to buyers with limited savings, and each can be paired with the state assistance programs above. The CalHFA VA program is built specifically for veterans and active military, offering a fixed-rate first mortgage that can require no down payment at all when combined with standard VA loan benefits. Veterans working with PJMC can also explore whether local first-time buyer requirements are waived, since several California programs exempt veterans from the standard first-time buyer definition.
Putting It Together
A first-generation homebuyer purchasing in San Francisco, for example, might combine a CalHFA first mortgage with MyHome assistance for a portion of the down payment, a Dream For All voucher if one is available, and an MCC for long-term tax savings, potentially covering the vast majority of upfront costs. The right combination always depends on your income, your county’s limits, your first-time or first-generation status, and which programs currently have open funding. This is exactly the kind of layering that a lender experienced with CalHFA can help you navigate. The difference between a standard lender and one who knows how to stack these programs can mean tens of thousands of dollars in assistance you’d otherwise miss.
Why Work With Perry Johnson Mortgage Company
California’s homebuyer assistance landscape is one of the richest and most complex in the country. Programs shift between first-come, first-served and lottery models, funding opens and closes in a matter of days, and income limits vary significantly by county. That complexity is exactly where PJMC’s loan officers add value. We stay current on CalHFA funding cycles and local program eligibility, help you get pre-approved so you’re ready the moment a program opens, and structure your first mortgage and down payment assistance together for maximum benefit.
We offer FHA, VA, USDA, and conventional loans across California, and our loan officers are trained to work within CalHFA’s approved lender network so your application moves smoothly from pre-approval to closing.
Ready to see what you qualify for? Reach out to a PJMC loan officer today to check current program funding in your area and get pre-approved.