CalHFA MyHome Assistance Program: Down Payment Help for California Buyers

Introduction

Coming up with a down payment is the single biggest barrier I hear about from California buyers. Home prices here are high enough that even 3.5% down on an FHA loan can mean scraping together $20,000 to $30,000 or more, sometimes far more in Los Angeles or the Bay Area. Closing costs add another $8,000 to $15,000 on top of that.

The CalHFA MyHome Assistance Program exists specifically to close that gap. It is a deferred-payment junior loan, sometimes called a silent second, that covers part of your down payment or closing costs. You do not make monthly payments on it. You repay it when you sell, refinance, or pay off your first mortgage.

I work with CalHFA programs regularly. This guide explains exactly how MyHome works, who qualifies, how the deferred loan math plays out over time, and whether it makes sense for your situation compared to other options. No fluff. Just the facts you need to make an informed decision.

If you want to start with a high-level overview, see the CalHFA MyHome program page on this site.

What Is the CalHFA MyHome Assistance Program?

The CalHFA MyHome Assistance Program is a deferred-payment junior loan of up to 3.5% of the appraised value or purchase price (whichever is lower) for eligible California first-time homebuyers. It must be used alongside a CalHFA first mortgage and can apply to down payment costs, closing costs, or both.

The California Housing Finance Agency (CalHFA) is a state agency, not a bank. It funds affordable mortgage programs for California residents who meet income and purchase price limits. MyHome is one of its flagship tools for reducing the upfront cash burden on first-time buyers.

The program works as a second lien on your property. No monthly payment is required on the junior loan. Simple interest accrues over time, and the full balance, principal plus accrued interest, becomes due when you sell the home, refinance the first mortgage, transfer title, or pay off the loan entirely.

The term "silent second" is accurate. The lien is recorded, but it sits quietly behind your first mortgage. You only interact with it when one of those trigger events occurs.

How Much Down Payment Help Does MyHome Actually Provide?

For FHA first mortgages, MyHome provides up to 3.5% of the appraised value or purchase price, covering the entire minimum FHA down payment requirement. For conventional CalHFA first mortgages, the maximum is typically 3%. The assistance covers down payment, closing costs, or a combination, capped at the program maximum.

Let me put real numbers on this.

Say you are buying a $550,000 home in Riverside County with an FHA loan. The minimum FHA down payment is 3.5%, which is $19,250. The MyHome program could cover that entire amount. You still need to cover closing costs separately, but your cash-to-close for the down payment drops to zero if you layer additional assistance on top, or you use MyHome specifically for closing costs and bring 3.5% from your own funds.

On a $650,000 purchase, 3.5% of that is $22,750. That is real money in a state where buyers often spend years saving for a down payment.

The assistance is not a grant. It is a loan. But because repayment is deferred and there are no monthly payments, it functions like free money during the time you own the home, with a balance due at the end.

Who Qualifies for the CalHFA MyHome Assistance Program?

To qualify for MyHome, you must be a first-time homebuyer (no primary residence ownership in the past 3 years), meet CalHFA income limits for your county, purchase an eligible property in California, and use a CalHFA-approved first mortgage. You must also complete a CalHFA-approved homebuyer education course before closing.

Here is each requirement in plain terms.

First-time homebuyer status. CalHFA uses a 3-year lookback. If you owned and occupied a home as your primary residence at any point in the last 3 years, you do not qualify. If it has been more than 3 years since you last owned, you are eligible again. Second homes and investment properties do not count against you.

Income limits. CalHFA sets income limits by county and household size. In high-cost counties like Los Angeles and Santa Clara, the limits are generous. In lower-cost inland counties, they are tighter. These limits are updated periodically, so I always direct buyers to the current CalHFA income limit tables rather than quoting figures that may be outdated.

Property requirements. The property must be a single-family home, approved condominium, or planned unit development in California. It must be your primary residence. Investment properties are not eligible.

Credit and debt ratios. CalHFA does not set a rigid minimum credit score for MyHome on its own, but the underlying first mortgage does. FHA loans through CalHFA typically require a 660 or higher credit score depending on the lender and loan scenario. Conventional CalHFA loans generally require higher scores. Debt-to-income ratios must meet the guidelines of the first mortgage program.

Homebuyer education. Every borrower on the loan must complete a CalHFA-approved education course. You can do this online through an approved provider. The certificate is valid for 12 months from completion.

How Does the MyHome Deferred Loan Work?

The MyHome junior loan accrues simple interest at the rate in effect when your loan closes. No payments are due until you sell the home, refinance, transfer title, or pay off the first mortgage. At that point, you repay the original loan amount plus all accrued simple interest in a single payment.

Simple interest means interest does not compound. It accrues on the original principal balance only.

Here is a straightforward example. You borrow $20,000 through MyHome at a 3% simple interest rate. After 7 years, accrued interest equals $4,200. Your total repayment at that point would be $24,200. Compare that to what you would have paid over 7 years if you had financed that $20,000 as part of a higher first mortgage balance. The deferred structure often wins on total cost, especially if you stay in the home for under 10 years.

The current MyHome interest rate is set by CalHFA and changes periodically. Always verify the current rate with your loan officer before closing. Rates in recent years have ranged from low single digits to mid single digits depending on market conditions.

One important caveat: if you refinance your first mortgage and the new lender will not accept a subordinate CalHFA lien, you will need to pay off the MyHome loan at closing. Not every lender will subordinate. Confirm this before refinancing.

How Do I Apply for the CalHFA MyHome Assistance Program?

You do not apply directly to CalHFA. Instead, you work with a CalHFA-approved lender who submits your application on your behalf. The lender processes both the first mortgage and the MyHome junior loan together as a combined package.

The process looks like this.

First, get pre-approved with a CalHFA-approved lender. Not every lender participates in CalHFA programs. Ask specifically whether the lender is approved and has recent CalHFA experience. Processing CalHFA loans takes more coordination than a standard mortgage, and experience matters.

Second, complete your homebuyer education certificate. Do this early. It is a prerequisite, and some online courses take 6 to 8 hours to complete. You cannot close without it.

Third, find a home within CalHFA purchase price limits for your county and get a ratified purchase agreement.

Fourth, your lender submits the CalHFA first mortgage and MyHome junior loan package for underwriting and CalHFA approval. Expect the process to take 30 to 45 days, sometimes longer. Build that timeline into your purchase contract.

Fifth, close. At closing, the MyHome funds are applied to your down payment or closing costs as specified.

I handle CalHFA loans regularly. If you want to know whether you qualify before starting the formal process, reach out directly.

Can I Use MyHome with an FHA, VA, or Conventional Loan?

MyHome is designed to work with CalHFA first mortgage products, which include FHA, USDA, and conventional (Fannie Mae and Freddie Mac) loan types. VA loans have their own benefit structure that already includes no down payment, so MyHome is not typically combined with VA financing.

For most first-time buyers, the most common pairing is CalHFA FHA plus MyHome. The FHA loan requires 3.5% down, and MyHome covers exactly that amount. This combination lets qualified buyers close with minimal or no out-of-pocket down payment.

For buyers with stronger credit and the ability to meet conventional loan requirements, the CalHFA conventional plus MyHome pairing can make sense. Conventional loans avoid FHA mortgage insurance premium (MIP), which adds a meaningful monthly cost. The tradeoff is stricter credit and income requirements.

If you are a veteran, your VA benefit already eliminates the down payment requirement. In most cases, using your VA entitlement directly is a better deal than a CalHFA product. See the VA loan overview for comparison.

What Are the Income and Purchase Price Limits for the MyHome Program?

CalHFA income limits vary by county and household size. Purchase price limits also vary by county. As a general benchmark, income limits in high-cost Southern California counties tend to allow household incomes above $150,000 for larger family sizes. Purchase price limits in those same counties often reach into the $800,000 to $900,000 range. Both figures are recalibrated periodically.

I am intentionally not quoting specific dollar figures here because CalHFA updates these limits regularly and a stale number does more harm than good. The current tables are published on the CalHFA website and updated whenever federal limits change.

What matters for your planning:

If you earn a household income over $200,000, you likely exceed the income limits in most California counties. MyHome is targeted at moderate-income buyers.

If you are buying in a high-cost area, the purchase price limits may still allow you to use the program even if the home price feels expensive by national standards. California's limits account for local market conditions.

If you are buying in a lower-cost inland county, both limits are tighter and you need to verify eligibility before going far down the path.

Your loan officer will run the numbers for your specific county and household during pre-approval. Do not assume eligibility or ineligibility until you see the actual limit tables for your situation.

Is the MyHome Program Worth It Compared to Other Down Payment Options?

For buyers who qualify and plan to stay in the home for at least 5 to 7 years, the MyHome program is usually worth it. The deferred structure avoids a monthly payment burden, and the simple interest cost over a typical ownership period is modest compared to the alternative of draining savings or delaying a purchase.

Here is how I think about the comparison.

Against a higher first mortgage. If you skip MyHome and put less down by borrowing more on your first mortgage, you pay interest on that larger balance every single month for 30 years. With MyHome, the deferred balance accrues simple interest but you pay it only once, at the end. For most holding periods, MyHome costs less.

Against waiting and saving. Every year you wait, California home prices have historically moved higher. A $20,000 delay in buying a $600,000 home can cost far more than $20,000 if prices rise 5% in that year. The math rarely favors waiting to save for a larger down payment in a market like California's.

Against gift funds. If a family member can gift you the full down payment at no cost to you, that is obviously better than a deferred loan. But many buyers do not have that option. MyHome fills that gap.

The real cost consideration. Run the total cost comparison using the California refinance calculator to model different scenarios. Input your expected ownership period and compare the all-in cost of MyHome versus saving longer versus a larger first mortgage balance.

One honest caution: if you plan to sell or refinance within 2 to 3 years, the accrued interest on the MyHome loan becomes a larger percentage of what you borrowed, and the benefit shrinks. For very short holding periods, other options may pencil out better.

Frequently Asked Questions

Bottom Line

The CalHFA MyHome Assistance Program is a practical tool for California first-time buyers who qualify. It provides a deferred junior loan of up to 3.5% of the purchase price, covers down payment or closing costs, and requires no monthly payment. You repay it, with simple interest, when you sell or refinance.

What to do next:

• Check your income and purchase price limits. Get current CalHFA limits for your county before assuming you qualify or do not qualify. Your loan officer can pull these in minutes.
• Start your homebuyer education course now. It takes 6 to 8 hours and must be completed before closing. Do not let it sit on your to-do list. See the full guide to California down payment assistance for other programs you may qualify to stack with MyHome.
• Get pre-approved with a CalHFA-approved lender. Not all lenders participate. Ask specifically and confirm the lender has closed CalHFA loans recently. Check today's mortgage rates so you can compare CalHFA pricing against market alternatives with real numbers in hand.

The MyHome program does not make a bad purchase good. But for a buyer who has found the right home at the right price and lacks the down payment, it removes the single biggest obstacle between you and homeownership.

This article is for educational purposes and does not constitute financial or legal advice. Mortgage rates, program guidelines, income limits, and purchase price limits change frequently. Verify current CalHFA program details with a licensed mortgage professional before making any decisions.

Aditya Choksi is a licensed Loan Officer (NMLS #2055084) based in Southern California, specializing in CalHFA programs, FHA loans, VA loans, and first-time buyer financing. He is licensed in Arizona, California, Colorado, Georgia, New Mexico, and Washington.