Down Payment Assistance Programs Every California Buyer Should Know

Buying a home in California can feel out of reach for many first-time buyers, especially with rising prices and competitive markets. Fortunately, there are several down payment assistance programs in California designed to make homeownership more affordable. Whether you’re purchasing in Roseville, Rocklin, or Sacramento, these programs can help bridge the gap between your savings and your dream home.

1. CalHFA Down Payment Assistance Programs

The California Housing Finance Agency (CalHFA) is one of the most popular options for homebuyers across the state. CalHFA offers loans and grants to assist with down payments and closing costs.

• CalHFA MyHome Assistance Program: Offers deferred-payment loans up to 3.5% of the purchase price or appraised value to help with down payment and closing costs.

• CalPLUS Conventional and FHA Loans: Combine low-interest first mortgages with the CalHFA Zero Interest Program (ZIP) for closing cost support.

• Eligibility: You must be a first-time homebuyer, complete homebuyer education, and meet income and credit requirements.

2. Local Down Payment Assistance Programs

Many cities and counties in California offer their own assistance programs in addition to CalHFA. These are often designed to help local residents purchase homes in their communities.

Examples include:

• Placer County First-Time Homebuyer Program: Offers low-interest, deferred-payment loans for buyers purchasing within the county.

• Sacramento Homebuyer Assistance Program: Provides funds up to $40,000 for qualified buyers toward down payment and closing costs.

• Folsom and Rocklin City Programs: Occasionally offer grants or forgivable loans depending on local funding availability.

3. National and Private Assistance Options

Beyond state and local resources, there are also national programs that can help reduce upfront costs:

• FHA Loans: Require as little as 3.5% down and allow for gift funds or assistance from family or nonprofits.

• USDA Loans: Offer zero-down financing in eligible rural and suburban areas (many parts of Placer County qualify).

• Freddie Mac Home Possible / Fannie Mae HomeReady: Offer low down payment options (3%) and reduced mortgage insurance requirements.

4. How to Qualify

Most assistance programs share some common eligibility requirements:

• Be a first-time homebuyer (no home ownership in the past 3 years).

• Meet income limits based on county and household size.

• Use the home as your primary residence.

• Complete an approved homebuyer education course.

Working with an experienced local mortgage broker can simplify this process — they’ll know which programs you qualify for and how to combine multiple benefits.

If saving for a down payment has been holding you back, you might be closer to owning a home than you think. From CalHFA assistance to local programs in Roseville and Sacramento, there are many ways to make your first home affordable.

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