California's high home prices make saving for a down payment one of the biggest barriers to homeownership. Fortunately, numerous assistance programs exist to help first-time buyers (and some repeat buyers) bridge the gap. These programs can cover some or all of your down payment and closing costs.
CalHFA (California Housing Finance Agency)
CalHFA is the state's primary affordable housing agency, offering several programs for first-time California homebuyers (or buyers who haven't owned in the past 3 years).
CalHFA's MyHome Assistance Program provides a deferred-payment junior loan of up to 3.5% of the purchase price for down payment and closing cost assistance. The loan has zero interest and no monthly payments — repayment is deferred until you sell, refinance, or pay off the first mortgage.
The CalHFA ZIP (Zero Interest Program) provides a zero-interest second mortgage for closing cost assistance, layered on top of other CalHFA programs.
Income limits apply and vary by county. Borrowers must complete homebuyer education counseling. The property must be a primary residence in California.
GSFA (Golden State Finance Authority)
GSFA Platinum offers up to 5% of the loan amount in down payment and closing cost assistance as a forgivable second mortgage. If you stay in the home for a specified period (typically 5 years), the assistance is forgiven entirely — essentially free money.
GSFA programs work with FHA, VA, USDA, and conventional first mortgages. Income limits are generally higher than CalHFA, making more borrowers eligible.
County and City Programs
Many California counties and cities offer their own assistance programs. Los Angeles County provides the Home Ownership Program (HOP) with deferred loans. San Diego's first-time buyer programs offer grants and deferred loans. Orange County's Housing Authority has multiple assistance programs. San Francisco's DALP provides loans for SF-based first-time buyers.
Employer Assistance Programs
Some California employers offer housing assistance as a benefit, particularly in the tech sector. If your employer has a homebuyer assistance program, it can often be combined with state and local programs for maximum benefit.
How Save Financial Helps
Save Financial actively monitors all available assistance programs and matches eligible buyers with the programs that provide the most benefit. We handle the application paperwork and coordinate with the assistance agencies.
Many buyers don't realize they qualify for assistance until they talk to us. Call (888) 703-1840 or apply online to check your eligibility.