First-Time Homebuyer Programs in California

Buying your first home is an exciting milestone, but rising home prices and upfront costs can make it feel out of reach. Fortunately, California offers a variety of first-time homebuyer programs that can help you secure a mortgage with a low down payment, reduced interest rates, or even grant assistance. By understanding your options, you can save thousands on your home purchase and start building equity sooner.

Who Qualifies as a First-Time Homebuyer?

In California, a first-time homebuyer is defined as someone who has not owned a home in the past three years. Even if you previously owned a home but sold it years ago, you may still qualify for special programs. Most programs have additional eligibility criteria, such as:

• Income limits based on county and household size
• Credit score requirements (usually 580-660+ depending on the loan type)
• Primary residence requirement (investment properties typically do not qualify)

Federal First-Time Homebuyer Programs Available in California

Before diving into state-specific programs, it’s essential to understand the major federal options available:

FHA Loans (Federal Housing Administration)

• Down payment: As low as 3.5% with a 580+ credit score
• More lenient credit requirements compared to conventional loans
• Mortgage insurance premium (MIP) required for the life of the loan

VA Loans (Department of Veterans Affairs)

• $0 down payment required for eligible veterans and active military
• No private mortgage insurance (PMI)
• Competitive interest rates and flexible qualification guidelines

USDA Loans (U.S. Department of Agriculture)

• $0 down payment for homes in rural or suburban areas
• Low mortgage insurance costs
• Income limits apply based on location

Conventional 97 Loan

• 3% down payment (lower than FHA)
• No upfront mortgage insurance fee (unlike FHA)
• Requires a higher credit score (620+)

California-Specific First-Time Homebuyer Programs

California offers additional assistance programs that can make homeownership more affordable.

CalHFA First Mortgage Programs

The California Housing Finance Agency (CalHFA) provides first-time buyers with affordable 30-year fixed-rate mortgages, which can be paired with down payment and closing cost assistance.

• CalHFA FHA Loan – FHA-backed mortgage with lower credit requirements
• CalHFA VA Loan – No down payment for eligible veterans
• CalHFA USDA Loan – 100% financing for rural properties
• CalHFA Conventional Loan – 3% down with lower mortgage insurance costs

CalHFA MyHome Assistance Program

• Provides up to 3.5% of the purchase price for down payment or closing costs
• Deferred payments – No repayment required until you sell, refinance, or pay off the mortgage
• Can be combined with CalHFA first mortgage programs

CalHFA Dream For All Shared Appreciation Loan (subject to funding availability)

• Covers up to 20% of the home purchase price
• No monthly payments – Instead, when you sell, CalHFA receives a percentage of the home’s appreciation
• Can significantly reduce mortgage payments

GSFA Platinum Program (Golden State Finance Authority)

• Up to 5% down payment assistance
• Available for FHA, VA, USDA, and conventional loans
• Forgivable grant (does not have to be repaid after three years)

City- and County-Specific Programs

Many local governments in California offer additional first-time buyer assistance. Popular examples include:

• Los Angeles County First Home Mortgage Program – Lower interest rates and down payment help
• San Francisco Down Payment Assistance Loan Program (DALP) – Deferred-payment loan up to $500,000 for eligible buyers
• San Diego County’s Homebuyer Assistance Program – Grants and low-interest loans for down payments

Comparing First-Time Buyer Loans vs. Conventional Mortgages

Feature	First-Time Buyer Loans	Conventional Loans
Down Payment	0-3.5%	5-20%
Mortgage Insurance	Required for most	Only if <20% down
Credit Score	580+ (FHA), 620+ (Conventional 97)	680+ preferred
Eligibility Restrictions	Income, home price limits apply	Fewer restrictions

How to Apply for First-Time Homebuyer Assistance

1. Check Your Eligibility – Review income limits, credit score requirements, and property eligibility.
2. Get Pre-Approved – Work with a mortgage lender to determine how much you can afford.
3. Choose the Right Loan – Compare FHA, VA, USDA, and CalHFA loan options.
4. Apply for Down Payment Assistance – Programs like MyHome or GSFA Platinum can reduce upfront costs.
5. Find Your Home & Close the Deal – With financing secured, you can confidently move forward with your purchase.

Start Your Homeownership Journey with Buwalda Mortgage Services

Navigating first-time homebuyer programs can be overwhelming, but you don’t have to do it alone. At Buwalda Mortgage Services, we specialize in helping first-time buyers secure the best financing options available. Contact us today to explore your eligibility and take the first step toward homeownership.