Down payment assistance in California — every program that actually works.
California has more down payment assistance programs than most buyers realize. Here are the ones that actually fund deals in 2025, what they cost, and how to combine them with FHA, VA, conventional, or USDA first mortgages.
CalHFA MyHome — the workhorse
MyHome is California's most-used DPA. It's a silent second mortgage — no monthly payment, repaid at sale, refinance, or end of term.
- Amount: up to 3.5% of purchase price with an FHA first, 3% with a conventional first
- Use: down payment, closing costs, or both
- Eligibility: first-time buyer (no primary residence in last 3 years), CalHFA homebuyer education course, income within county limits
- Income limits (Sacramento County 2025): roughly $235K for moderate-income program tier
Common stack: FHA first mortgage + MyHome covering the entire 3.5% down. Many buyers close with just prepaid taxes and insurance out of pocket.
CalHFA Zero Interest Program (ZIP)
ZIP is a closing-cost assistance layer that stacks on top of MyHome:
- Amount: 2% to 3% of the first mortgage amount
- Use: closing costs only (not down payment)
- Interest rate: 0%, deferred — same silent-second structure as MyHome
- Eligibility: stackable with CalHFA conventional first mortgages
Combined with MyHome, ZIP often takes a CalHFA buyer from $15K out of pocket down to under $5K.
GSFA Platinum — grant-based assistance
Run by the Golden State Finance Authority. Unlike CalHFA's silent second, GSFA Platinum is a grant — you don't repay it.
- Amount: 1% to 5.5% of the loan amount (choose your assistance tier)
- Use: down payment and/or closing costs
- Loan types: works with FHA, VA, USDA, and conventional firsts
- Eligibility: no first-time buyer requirement, income limits apply (varies by county), 640+ FICO typical
Strong fit when you don't qualify for CalHFA (already owned a home, higher income), but still want help with the down or closing.
CalHFA Forgivable Equity Builder Loan
One of the strongest programs available — when funded. The Equity Builder loan is a 10% of purchase price second mortgage that's fully forgiven after 5 years of owner-occupancy.
- Amount: up to 10% of purchase price
- Forgiveness: 0% interest, no payments, forgiven entirely after 5 years if you still live in the home
- Eligibility: first-time buyer, income limits (lower than MyHome — typically 80% AMI)
Funding for this program is cyclical — sometimes available, sometimes paused. Always check current status before relying on it.
Sacramento-area city and county programs
Less well-known but real local options:
- City of Sacramento Mortgage Credit Certificate (MCC): federal tax credit up to 20% of mortgage interest paid annually — not DPA exactly, but reduces tax liability dollar-for-dollar
- SHRA First-Time Homebuyer programs: Sacramento Housing and Redevelopment Agency periodically offers loans for income-qualified buyers
- Roseville HOMES program: deferred-payment loans for income-qualified Roseville buyers
- Employer assistance: some Sacramento-area employers (UC Davis, Sutter, Kaiser) offer employee homebuyer benefits worth checking
VA and USDA — built-in $0 down (not technically DPA)
Worth naming because both eliminate the need for down payment assistance entirely:
- VA loans: $0 down for eligible service members and veterans, no PMI, no income limit
- USDA loans: $0 down in designated rural areas (Galt, Wilton, Herald, Elverta, parts of Lincoln and Loomis around Sacramento), income capped
If you qualify for either, DPA programs are usually unnecessary — a small seller credit toward closing typically handles cash-to-close.
Stacking strategy: how to minimize cash-to-close
Common high-impact stacks in California right now:
- FHA + CalHFA MyHome + seller credit — first mortgage at FHA terms, MyHome covers 3.5% down, seller credit (negotiated into the offer) handles most closing costs. Net out-of-pocket: prepaids only.
- Conventional HomeReady + GSFA Platinum grant — 3% down conventional with grant covering the down. Cheaper long-term than FHA because PMI drops off.
- CalHFA first + MyHome + ZIP — California's intended full stack. Often results in under $5K cash-to-close.
- VA + seller credit — $0 down with no PMI, seller covers closing concessions. The cleanest path when you're VA-eligible.
The right stack depends on your credit score, income relative to AMI, target purchase price, and the seller's willingness to credit. A 15-minute conversation usually narrows it.
Frequently asked questions
Do I have to repay California down payment assistance?+
Depends on the program. CalHFA MyHome and ZIP are silent seconds — repaid at sale or refinance with no monthly payment. GSFA Platinum is a grant — no repayment. CalHFA Equity Builder is forgiven after 5 years of owner-occupancy.
Can I get down payment assistance without being a first-time buyer?+
Yes. GSFA Platinum has no first-time buyer requirement. CalHFA reserves most programs for first-time buyers (no primary residence in last 3 years), but some apply in targeted census tracts even for repeat buyers.
Will using DPA hurt my offer in Sacramento?+
Not when structured correctly. Sacramento sellers care about certainty of close. A clean CalHFA file with proper lender coordination closes as reliably as any conventional. The key is using a lender approved by CalHFA who runs these every month.
What's the income limit for CalHFA in Sacramento?+
Approximately $235K household income for moderate-income MyHome (2025, varies slightly by year and household size). Lower for first-mortgage-only and Equity Builder tiers. Confirm current limit before applying.
Can I combine CalHFA and GSFA?+
Usually not — they're alternative structures, not stackable with each other. The standard CalHFA stack is MyHome + ZIP. The standard GSFA stack is Platinum + seller credit. Choose the program your income and credit fit best.