California First-Time Home-Buying Assistance Programs & Grants
(Last Updated – 06/2025)
If you’re house hunting in California, you don’t need anyone to tell you that buying a home is a pricey endeavor.
The median home sale price in the state was $860,300 in June 2025, and while that figure was up just 0.1% year over year for the state, it is still nearly two times the national median home sales price of $438,357, both figures according to Redfin.
Fortunately, California has an active first-time homebuyer assistance program, and federal and other programs provide a helping hand to prospective homeowners, too. This kind of backup can help make owning a piece of the Golden State a reality instead of just a dream.
Who Is Considered a First-Time Homebuyer in California?
The definition of first-time homebuyer is broader than it seems at first glance.
In California and many other locations, a first-time buyer is anyone who has not owned a primary home in the past three years. There may be exceptions for veterans and others worth exploring, too.
💡 Quick Tip: SoFi’s award-winning mortgage loan experience means a simple application — we even offer an on-time close guarantee. We’ve made more than $9.4 billion in home loans so we know a thing or two about what makes homebuyers happy.‡
7 California Programs for First-Time Homebuyers
The California Housing Finance Agency(CalHFA) offers both conventional and government-backed first mortgages. Down payment and/or closing cost assistance is available in many of the programs.
For all of the loans listed below, buyers must have a minimum credit score of 640, 660, or 680, depending on certain factors, and meet income limits . Homebuyer education counseling is required by one occupying household member.
California Housing mortgages can be used for single-family homes, condominiums, planned unit developments, manufactured housing, and in some cases, guesthouses and accessory dwelling units.
Here’s a closer look at the agency’s programs for first-time homebuyers.
1. CalHFA FHA Loan
This program offers a 30-year fixed-rate mortgage to first-time buyers. The CalHFA FHA loan can be combined with the CalHFA down payment assistance programs. In addition to the requirements listed above, debt-to-income limits may apply.
2. CalPLUS FHA Loan
The CalPLUS FHA loan is a 30-year fixed-rate FHA loan with a slightly higher interest rate than the FHA loan listed above. It can be paired with CalHFA Zero Interest Program (ZIP) for closing cost assistance.
3. CalPLUS Access FHA
The CalPLUS Access FHA loan is an FHA-insured 30-year first mortgage with a slightly higher fixed interest rate than CalHFA’s standard FHA program. CalPLUS Access FHA is combined with MyAccess for closing costs or down payment assistance.
4. CalHFA VA Loan
The CalHFA VA loan is a 30-year, fixed-rate VA mortgage available to veterans who can show a valid certificate of eligibility. Borrower requirements may differ slightly from the CalFHA programs; qualifying veterans may need to make no down payment.
5. CalHFA USDA Loan
The CalHFA USDA loan is a 30-year fixed-rate mortgage loan guaranteed by the USDA. It can be combined with the MyHome Assistance Program and the MyHome and School Program for down payment and closing cost assistance for first-time homebuyers. The USDA has its own income limits, which may be more restrictive than CalHFA limits. (See below for more information on USDA loans.)
6. CalHFA Conventional Loan
The CalHFA Conventional loan is a 30-year, fixed-rate loan insured through private mortgage insurance instead of the government. Buyers must meet the same requirements as CalHFA government-backed loans listed above.
7. CalPLUS Conventional Loan
The CalPLUS Conventional loan is a 30-year, fixed-rate loan with a slightly higher interest rate than a CalHFA conventional loan. It can be paired with the CalHFA ZIP program to help homebuyers cover closing costs.
8. MyHome Down Payment Assistance
The MyHome Assistance program works with CalHFA government and conventional first mortgages. Borrowers of government-backed mortgages can apply for a junior loan of up to 3.5% of the home purchase price (or the appraised value, whichever is less) to help with down payment and closing costs. Payments are deferred until you sell the home, refinance your mortgage, or pay your mortgage in full.
Conventional loan borrowers may be eligible for a MyHome loan as well. But in this case the junior loan is up to 3% of the home purchase price (or appraised value, whichever is less).
Recommended: First-Time Homebuyer Guide
How to Apply to California Programs for First-Time Homebuyers
The California Housing Finance Agency website provides details on each of its mortgage, down payment, and closing costs programs. Also on the website is an interactive tool that buyers can use to determine if they are eligible for CalHFA programs and if so, which program might best suit their situation.
The agency does not lend directly, but does list participating lenders . It’s especially important for first-time buyers, who may be unfamiliar with the mortgage lending process, to compare interest rates, fees, and other costs among lenders to find the most affordable loan.
Recommended: Understanding the Different Types of Mortgage LoansFederal Programs for First-Time Homebuyers
A number of U.S. government-sponsored programs exist for people with low credit scores or limited down payment funds. They are sometimes meant for repeat homeowners, but these national programs can also be very helpful for people who are buying their first home, or who haven’t owned a home in several years.
These mortgage programs are generally for single-family homes, two- to four-unit properties that will be owner occupied, approved condos, townhomes, planned unit developments, and some manufactured homes.
Federal Housing Administration (FHA) Loans
The FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), insures mortgages for borrowers with lower credit scores. Homebuyers choose from a list of approved lenders participating in the FHA loan program.
• Loans have competitive interest rates and require a down payment of 3.5% of the purchase price for borrowers, who typically need FICO® credit scores of 580 and higher. Those with lower credit scores (as low as 500) must put down at least 10%.
• In addition to examining your credit score, lenders will look at your debt-to-income ratio (DTI, your monthly debt payments compared with your monthly gross income). FHA allows a DTI of up to 57%, vs. a typical 45% maximum for a conventional loan.
• Gift money for the down payment is allowed from certain donors and will be documented in a gift letter for the mortgage.
• FHA loans always require mortgage insurance premiums (MIP): This includes a fee of 1.75% of the base loan amount, which can be rolled into the loan, upfront. Borrowers also carry annual premiums for the life of the loan. As of 2025, monthly MIP for new homebuyers is 0.15% to 0.75%. A down payment of at least 10% allows the removal of mortgage insurance after 11 years. For a $300,000 mortgage balance, upfront MIP would be around $5,250 and monthly MIP, at a rate of 0.55%, would be about $137.
You can learn more about these loans, including FHA loans for refinance and rehab of properties, by reading up on FHA requirements, loan limits, and rates.
Freddie Mac Home Possible Mortgages
Very low- and low-income borrowers may make a 3% down payment on a Home Possible® mortgage. These loans allow various sources for down payments, including co-borrowers, family gifts, employer assistance, secondary financing, and sweat equity.
The Home Possible mortgage is for buyers who have a credit score of at least 660. Once you’ve paid off 20% of your loan, the Home Possible mortgage insurance can be canceled, which will lower your mortgage payments.
Fannie Mae HomeReady Mortgages
Fannie Mae HomeReady® Mortgages allow down payments as low as 3% for low-income borrowers. Applicants generally need a credit score of at least 620; pricing may be better for credit scores of 680 and above. Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts and grants.
For income limits, a comparison to an FHA loan, and other information, go to this Fannie Mae site .
Fannie Mae Standard 97 LTV Loan
The conventional 97 LTV loan is for first-time homebuyers of any income level who have a credit score of at least 620 and meet debt-to-income criteria. The 97% loan-to-value mortgage requires 3% down. Borrowers can get down payment and closing cost assistance from third-party sources.
Department of Veterans Affairs (VA) Loans
Eligible active-duty members of the military, veterans, reservists, and surviving spouses may apply for loans backed by the Department of Veterans Affairs. These loans designed for those who serve our country can be used to buy, build, or improve homes, have lower interest rates than most other mortgages and don’t require a down payment.
• Most borrowers pay a one-time funding fee that can be rolled into the mortgage.
• VA loans do not require private mortgage insurance (PMI) for borrowers who make a down payment of less than 20%.
• These loans have more flexible credit score requirements. In some cases, even those who have experienced foreclosure or bankruptcy can qualify.
Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA so make sure to review a guide to qualifying for a VA loan as a first step in the process.
💡 Quick Tip: Active duty service members who have served for at least 90 consecutive days are eligible for a VA loan. But so are many veterans, surviving spouses, and National Guard and Reserves members. It’s worth exploring with an online VA loan application because the low interest rates and other advantages of this loan can’t be beat.†
Native American Veteran Direct Loans (NADLs)
Eligible Native American veterans and their spouses may use these no-down-payment loans to buy, improve, or build a home on federal trust land. Unlike VA loans listed above, the Department of Veterans Affairs is the mortgage lender on NADLs. (Contact them at [email protected].) The VA requires no mortgage insurance, but it does charge a funding fee.
US Department of Agriculture (USDA) Loans
No down payment is required on these loans to moderate-income borrowers that are guaranteed by the USDA in specified rural areas. Borrowers pay an upfront guarantee fee and an annual fee that serves as mortgage insurance.
The USDA also directly issues loans to low- and very low-income people. For loan basics and income and property eligibility, head to this USDA website.
HUD Good Neighbor Next Door Program
This program can help police officers, firefighters, emergency medical technicians, and teachers qualify for mortgages in the areas they serve. Borrowers can receive 50% off a home in what HUD calls a “revitalization area.” They must live in the home for at least three years.
Go to the HUD program page.
California First-Time Homebuyer Stats for 2025
This is a snapshot of the recent home-buying experience in California.• Median home sale price: $860,300
• 3% down payment: $25,809
• 20% down payment: $172,060
• Average credit score (vs. 715 nationwide): 722
Financing Tips for First-Time Homebuyers
In addition to federal and state government-sponsored lending programs, there are other financial strategies that may help you become a homeowner. Some examples:
• Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. A first-time homebuyer, for the purposes of IRA withdrawals, is someone who has not owned a principal residence in the last two years. You will still owe income tax on the IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals may jeopardize your retirement savings.
• Roth IRA withdrawals. Because Roth IRA contributions are made with after-tax money, the IRS allows tax- and penalty-free withdrawals of contributions for any reason as long as you’ve held the account for five years. You may also withdraw up to $10,000 in earnings from your Roth IRA without paying taxes or penalties if you are a qualifying first-time homebuyer and you have had the account for five years. With accounts held for less than five years, homebuyers will pay income tax on earnings withdrawn.
• 401(k) loans. If your employer permits you to borrow from the 401(k) plan that it sponsors, you may consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000, within a 12-month period without incurring taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account. Worth noting: You usually have to pay back the loan within five years, but if you’re using the money to buy a house, you may have up to 15 or even 25 years to repay.
• State and local down payment assistance programs. Usually offered at the regional or county level, these programs provide flexible second mortgages for first-time buyers looking into how to afford a down payment.
• The mortgage credit certificate program. First-time homeowners and those who buy in targeted areas may be able to claim a portion of their mortgage interest as a tax credit, up to $2,000. Any additional interest paid can still be used as an itemized deduction. To qualify for the credit, you must be a first-time homebuyer, live in the home, and meet income and purchase price requirements, which vary by state. There are fees associated with applying for and receiving the mortgage credit certificate that vary by state. Often the savings from the lifetime of the credit can outweigh these fees.
However, it’s important to note that not all locations offer this program, and funding can run out in those areas that do. You can check with your county’s housing department to learn more.
• Your employer. Your employer may offer access to lower-cost lenders and real estate agents in your area, as well as home buying education courses.
• Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from government, nonprofit, and community organizations in your area.
The Takeaway
California may well be among the priciest markets for first-time homebuyers to break into, but state programs make it easier for some of them to call the Golden State home. Help can be available for qualified borrowers to assist with the funding of down payments, mortgages, and closing costs. Other first-time buyers can explore government-backed and conventional loans on their own.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.FAQ
Should I take first-time homebuyer classes?
Yes! Good information is key to a successful home-buying experience for anyone, but especially for newcomers, who can easily be overwhelmed by the jargon, technicalities, and magnitude of applying for a mortgage and purchasing a home. First-time homebuyer classes can help. Indeed they are required for many government-sponsored loan programs. And for everyone else, this experience is a great way to get acquainted with the home-buying process before you dive into your search in earnest.
Do first-time homebuyers with bad credit qualify for homeownership assistance?
Often they do. Many government and nonprofit homeowner assistance programs are available to people with lower credit scores. And often, interest rates and other loan pricing are competitive with those of loans available to borrowers with higher credit scores. That said, almost any lending program has credit qualifications.
Is there a first-time homebuyer tax credit in California?
No statewide first-time homebuyer tax credit is currently active in California, but programs exist that offer tax benefits and financial assistance for first-time homebuyers. Certain county agencies — including the Los Angeles County Development Authority (LACDA) — issue mortgage credit certificates when funding is available. Consult a lender or real estate agent for more information.
Is there a first-time veteran homebuyer assistance program in California?
Yes. CalHFA offers a VA loan to first-time borrowers. California veterans may also may find options in the federal VA loan programs listed above.
What credit score do I need for first-time homebuyer assistance in California?
CalHFA programs require a credit score of 640, 660, or 680, depending on certain factors. There are other private, state, and federal loan programs that borrowers with lower scores may be able to access.
What is the average age of first-time homebuyers in California?
There seems to be little data about California first-timers, but the average age of a first-time homebuyer in the U.S. is at an all-time high of 38, according to data from the National Association of Realtors®.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
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