First-time home buyer programs in California: assistance, loans and real costs
California’s challenge is scale: a 3% down payment on a $790,000 median home is still roughly $24,000, which is why layered assistance — CalHFA plus a local program plus a gift — is the norm rather than the exception. That is the one sentence to keep in mind while reading the programs below.
| State housing agency | California Housing Finance Agency (CalHFA) |
|---|---|
| Median home price (approx.) | $790,000 — statewide order of magnitude; metros differ |
| 3.5% / 5% / 20% down | $27,650 / $39,500 / $158,000 on the median |
| Property tax (effective) | about 0.71% — roughly $5,609 a year on the median |
| Mortgage credit certificate | Not consistently offered — ask a lender |
| Transfer tax | California counties charge a documentary transfer tax of $1.10 per $1,000 (0.11%); charter cities such as Los Angeles, San Francisco, Oakland and San Jose add city transfer taxes that can exceed 1% and rise sharply on high-value sales. |
California’s first-time buyer programs
CalHFA offers first-time buyers the CalHFA Conventional and FHA first mortgages paired with MyHome Assistance, plus the CalPLUS loans with a Zero Interest Program (ZIP) for closing costs. The Dream For All shared-appreciation program, offered by lottery when funded, covers up to 20% of the price for first-generation buyers. Many cities and counties add their own DPA.
How the assistance money works
MyHome Assistance is a deferred-payment junior loan of up to 3% of the price or appraised value (3.5% for FHA), repaid when you sell, refinance or pay off the first loan; income limits and a purchase price cap apply. Dream For All is repaid as a share of appreciation rather than interest.
Every assistance dollar comes in one of four shapes — grant, forgivable, deferred or repayable — and the shape decides what it costs you over ten years. Get it in writing before you apply. See how down payment assistance programs work.
The MCC: a federal tax credit for the life of the loan
CalHFA discontinued its own Mortgage Credit Certificate program; some counties and cities still issue MCCs when they have federal allocation — ask a CalHFA-approved lender about your county.
Who qualifies: income, price and credit limits
CalHFA income limits are set by county and are high in coastal counties (often well above $200,000 for a household in the Bay Area and Los Angeles); the purchase price cap is also county-based. Most programs require a 660 to 680 minimum credit score and a CalHFA-approved homebuyer education course.
Transfer taxes and closing costs in California
California counties charge a documentary transfer tax of $1.10 per $1,000 (0.11%); charter cities such as Los Angeles, San Francisco, Oakland and San Jose add city transfer taxes that can exceed 1% and rise sharply on high-value sales. Who pays is negotiated and varies by region.
Closing costs are driven by price: 1% to 2% is typical for the government and title portion in most counties, but Los Angeles and Bay Area city taxes, plus high escrow and title fees, can push total buyer costs toward 2% to 3% before prepaids. Our guide to closing costs explains each line of the Loan Estimate and which fees you can shop.
Worked example: buying the median home in California
The numbers below assume California’s approximate median price of $790,000 and a 6.5% rate chosen for illustration, not quoted. Property tax is estimated from the state’s effective rate of about 0.71% — $5,609 a year at this price — and will differ by county. Add homeowners insurance and, below 20% down, mortgage insurance.
| Structure | Down payment | Loan amount | P&I at 6.5% (30 yr) | Property tax / mo (est.) |
|---|---|---|---|---|
| FHA, 3.5% down | $27,650 | $762,350 | $4,819 | $467 |
| Conventional, 5% down | $39,500 | $750,500 | $4,744 | $467 |
| Conventional, 20% down (no PMI) | $158,000 | $632,000 | $3,995 | $467 |
Illustrative rate and approximate state figures — not an offer or a quote. Full payment tables cover $150,000 to $800,000 at 5% to 8%; the affordability guide explains how lenders size the loan.
Frequently asked questions
Does California have down payment assistance for first-time buyers?
MyHome Assistance is a deferred-payment junior loan of up to 3% of the price or appraised value (3.5% for FHA), repaid when you sell, refinance or pay off the first loan; income limits and a purchase price cap apply. Program terms and amounts change with funding — confirm the current version with California Housing Finance Agency or an approved lender before you count on a figure.
Is there a first-time home buyer tax credit in California?
CalHFA discontinued its own Mortgage Credit Certificate program; some counties and cities still issue MCCs when they have federal allocation — ask a CalHFA-approved lender about your county. MCCs reduce federal income tax owed each year for as long as you keep the loan and live in the home; they are applied for through the lender at purchase.
What are typical closing costs when buying a house in California?
Closing costs are driven by price: 1% to 2% is typical for the government and title portion in most counties, but Los Angeles and Bay Area city taxes, plus high escrow and title fees, can push total buyer costs toward 2% to 3% before prepaids. California counties charge a documentary transfer tax of $1.10 per $1,000 (0.11%); charter cities such as Los Angeles, San Francisco, Oakland and San Jose add city transfer taxes that can exceed 1% and rise sharply on high-value sales.
Guides for first-time buyers
- Down payment assistance programs: how they work and how to find yours
- How much house can I afford? The math lenders actually use
- FHA vs conventional for a first-time buyer: which loan wins, and when
- 3% down conventional loans: HomeReady, Home Possible and Conventional 97
Same state, other questions: hard money rules in California · foreclosure in California.