Quick Answer
The CalHOME program provides deferred-payment down payment loans to California first-time buyers through local agencies and nonprofits funded by the state. CalHFA's MyHome Assistance Program offers similar help statewide through approved lenders. Both require income qualification, a minimum credit score, and owner-occupancy of a primary residence.
Introduction
Saving a down payment while renting in California is a real obstacle. Median prices across most of the state put even the minimum down payment well out of reach for a large share of buyers, particularly those earlier in their careers or without family equity to lean on.
California built programs specifically to close that gap. The CalHOME program and CalHFA down payment assistance are the two main state-level tools, and together they've helped thousands of California buyers get into homes they couldn't otherwise afford.
The programs are also genuinely confusing. CalHOME and CalHFA sound nearly identical. Their eligibility rules have real nuance. The application process varies depending on where you live and which agency currently has funding. And a lot of what's online about these programs is outdated or incomplete.
I work with first-time buyers on this regularly. What follows is a clear breakdown of how both programs work, who qualifies, and what you actually need to do to access the money.
What Is the CalHOME Program?
The CalHOME program is a California state-funded initiative that provides deferred-payment loans to first-time homebuyers for down payment and closing costs. Funds flow from the state to local governments and nonprofits, which lend directly to eligible buyers in their area.
"Deferred payment" means no monthly payment. The loan sits behind your first mortgage as a silent second. You repay it when you sell the home, refinance, or stop occupying it as your primary residence.
Several things distinguish CalHOME from other assistance options:
It is locally administered. The California Department of Housing and Community Development (HCD) distributes state funding to cities, counties, and nonprofit housing organizations. Each administering agency runs its own application process. Availability depends entirely on whether your specific area has active funding. Some jurisdictions have money ready to deploy today. Others have exhausted their current allocation and are waiting on the next state funding round.
It targets first-time buyers. Using the federal definition: you haven't owned and occupied a primary residence in the past 3 years. Prior homeowners can still qualify if they meet that threshold.
Loan amounts vary by agency. Each local administrator sets its own maximum based on available funding and how the local program is designed. There is no single statewide number.
Income limits apply. Limits are tied to the Area Median Income (AMI) for your specific county. They vary considerably across California's 58 counties and change periodically. Always verify current limits directly with the administering agency, not from a blog post that may be months out of date.
The biggest practical challenge with CalHOME is finding out whether your area has active funding right now. I'll address how to do that in the application section below.
How Does CalHFA Down Payment Assistance Work?
CalHFA's MyHome Assistance Program is a deferred-payment junior loan for down payment and closing costs, accessed through CalHFA-approved lenders statewide. It requires a CalHFA first mortgage and carries no monthly payment. Repayment is due when you sell, refinance, or stop occupying the home as your primary residence.
Unlike CalHOME, CalHFA MyHome doesn't depend on your city or county having active local funding. Any CalHFA-approved lender can originate both the first mortgage and the junior loan in one transaction.
The structure mirrors CalHOME: no monthly obligation, deferred until a triggering event, layered behind your primary mortgage as a silent second. The key difference is distribution. CalHFA runs through lenders you already interact with as part of a normal mortgage process. CalHOME runs through local housing agencies you may have never heard of.
CalHFA also administers the Dream For All Shared Appreciation Loan, a separate program that provides a larger upfront loan in exchange for a share of the home's appreciation when you sell. Dream For All has operated as a lottery due to demand far exceeding available funds. Check CalHFA's website for current program status and open enrollment windows.
For a full breakdown of MyHome program details and current eligibility terms, see my guide on the CalHFA MyHome Assistance Program.
Who Qualifies for CalHOME and CalHFA Down Payment Assistance?
Both programs serve California first-time buyers with moderate incomes purchasing a primary residence. Core eligibility overlaps significantly, though specific thresholds differ by program and county.
First-time buyer requirement. You haven't owned and occupied a primary residence in the past 3 years. If you previously owned a home, moved out, and rented for 3 years, you qualify again. Owning investment property alone does not disqualify you.
Income limits. Both programs cap your gross income relative to your county's AMI. These thresholds change over time and vary significantly across counties. A limit that applies in Fresno differs substantially from one in Santa Clara or Los Angeles County. Verify current income limits directly with CalHFA or your local CalHOME agency before assuming you do or don't qualify.
Credit score. CalHFA requires a minimum 660 credit score for most programs. Local CalHOME agencies set their own minimums, which can be lower or higher. Below 660, your options narrow considerably. If you're in that range, explore what's available through other California down payment assistance programs, and consider addressing credit issues before applying.
Homebuyer education. Both programs require an approved homebuyer education course before closing. Most buyers complete it online in 6-8 hours through providers like eHome America or Framework. This requirement is not optional, and it's easy to forget until it becomes a closing-timeline problem. Do it early.
Property requirements. Single-family homes, approved condominiums, and certain manufactured homes qualify. The property must be owner-occupied as your primary residence. Investment properties and second homes do not qualify.
Debt-to-income ratio. Down payment assistance doesn't lower your DTI. You still have to qualify for the first mortgage based on your income. If your DTI is already stretched, address that before applying.
How Much Down Payment Help Can I Get?
Assistance amounts vary by program, county, and available funding. CalHFA MyHome is structured as a percentage of the purchase price or appraised value, whichever is lower. CalHOME amounts are set locally by each administering agency.
The honest answer: verify current maximums directly with CalHFA or your local housing agency. Numbers change with each program update, and what was accurate six months ago may not apply today.
A few things worth knowing regardless of the specific amount:
You typically still need some of your own funds. Most programs require a minimum borrower contribution from your own savings, separate from gifts or assistance. The specific amount varies by program and lender. Verify the requirement before assuming assistance covers everything.
Programs can be stacked. Some buyers combine CalHFA MyHome with local city or county grants or a CalHOME loan. Layering assistance is common in California. Ask your lender early what can be combined in your specific area and county.
Funds are limited and can run out. Both CalHOME and CalHFA operate with finite state allocations. Some programs exhaust their funding before the fiscal year ends and go dormant until the next round. Waiting to apply can mean missing a funding window entirely.
What Is the Difference Between CalHOME and CalHFA MyHome?
CalHOME is administered by local governments and nonprofits using HCD state funding. CalHFA MyHome flows through statewide-approved lenders and requires a CalHFA first mortgage. CalHOME availability is regional and depends on local funding cycles. CalHFA MyHome is available statewide wherever approved lenders operate.
Here's a direct comparison:
| CalHOME | CalHFA MyHome | |
|---|---|---|
| Administered by | Local agency or nonprofit (HCD-funded) | California Housing Finance Agency |
| Applied through | Local housing agency | CalHFA-approved lender |
| Geographic availability | Varies by city/county and funding cycle | Statewide through approved lenders |
| First mortgage requirement | Varies by local agency | CalHFA first mortgage required |
| Payment structure | Deferred, no monthly payment | Deferred, no monthly payment |
| Repayment trigger | Sale, refi, or non-occupancy | Sale, refi, or non-occupancy |
The main practical difference: CalHFA MyHome is more predictable. Terms are standardized statewide and administered through a single entity. CalHOME depends entirely on what your local agency has available, which varies considerably by geography and time of year.
If CalHOME funding is currently active in your area, it can be a strong complement to CalHFA MyHome. If it isn't, CalHFA MyHome is typically the more accessible path.
For FHA-specific scenarios, I have a full breakdown of how FHA loans work in California that pairs well with this.
How Do I Find and Apply for Down Payment Assistance in California?
Start by getting pre-approved for your first mortgage. Know what you qualify for on the primary loan before you layer assistance programs on top. Your income, credit, and DTI affect assistance eligibility the same way they affect first mortgage eligibility. Check current California mortgage rates to understand the market, then work with a lender to run your numbers.
Here's the step-by-step process I walk buyers through:
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Get pre-approved first. Understand your first mortgage parameters before chasing assistance. This step tells you your purchase ceiling and clarifies what assistance you actually need to bridge.
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Find your local CalHOME administrator. The California HCD website maintains a list of active CalHOME grantees by jurisdiction. Search for your city or county. Call the listed agency and ask directly whether they have CalHOME funds available right now for homebuyers. Don't assume funding exists. Verify it.
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Connect with a CalHFA-approved lender for MyHome. Any CalHFA-approved lender can originate both the first mortgage and the junior loan in one transaction. You don't need a specific bank type. Mortgage brokers with CalHFA approval qualify.
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Complete homebuyer education early. Both programs require it before closing. Do it online over a weekend so it never becomes the thing that delays your escrow.
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Submit your application. CalHOME applications go through the local agency. CalHFA MyHome is handled by your lender as part of the standard loan package. The two can run in parallel if you're pursuing both.
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Close. Junior loan funds arrive at closing and apply directly toward your down payment and closing costs. Both loans close simultaneously with the first mortgage in a single transaction.
One timing note: CalHOME applications through local agencies can take longer than a standard mortgage approval. If you're working with a specific close-of-escrow date, communicate that to the local agency at the outset.
Is a Deferred-Payment Loan Actually a Good Deal?
For buyers who otherwise couldn't purchase, a deferred-payment down payment loan typically makes sense. You pay nothing monthly while living in the home, and repay from your equity when you sell or refinance. The math works best for buyers who plan to stay at least 5 years.
The opportunity cost of continuing to rent while saving is real. In California, housing prices have historically continued to climb while buyers wait. A deferred loan that gets you into a home now, versus another 3-4 years of saving while prices potentially rise, often pencils out favorably when you model the total picture.
The calculus shifts if you plan to move quickly. Closing costs on both the purchase and future sale eat into your equity. If you're buying with a firm expectation of relocating in 2-3 years, model it carefully before committing.
One distinction worth understanding: some assistance programs share in appreciation, not just the original loan amount. CalHFA's Dream For All works this way. A simple deferred repayment loan and a shared-appreciation loan have meaningfully different economics. Read the repayment terms before signing.
To model your monthly payment across different purchase prices and down payment scenarios, the California mortgage calculator is a practical starting point.
If you're a veteran or active-duty service member, there's a separate path worth understanding before committing to any down payment assistance structure. VA loans offer no-down-payment financing without requiring a junior loan at all. If you're eligible, compare that option first.
Frequently Asked Questions
Can I use CalHFA down payment assistance with an FHA loan?
Yes. CalHFA MyHome pairs with CalHFA first mortgages, including FHA, conventional, VA, and USDA options. The first mortgage must be originated through a CalHFA-approved lender. You cannot layer CalHFA MyHome on a non-CalHFA first mortgage originated elsewhere.
Do I have to be a literal first-time homebuyer to qualify?
No. Both programs use the federal definition: you haven't owned and occupied a primary residence in the past 3 years. Previous homeowners who meet that threshold qualify again. Owning a rental property or investment property alone does not disqualify you from either program.
What happens to my CalHFA MyHome loan when I refinance?
The junior loan becomes due and payable when you refinance, sell, pay off the first mortgage, transfer title, or stop occupying the property as your primary residence. Refinancing triggers full repayment. Factor this into your decision before acting on a rate drop, especially if your equity position is thin.
Can I combine CalHOME and CalHFA MyHome assistance on the same purchase?
Potentially yes, depending on your local CalHOME agency's rules and current CalHFA guidelines. Stacking multiple assistance programs is common in California. It requires early coordination between your lender and the local agency. Raise this question at your first lender conversation, not after you're under contract with a closing deadline.
What credit score do I need for CalHFA assistance?
CalHFA requires a minimum 660 credit score for most programs. Local CalHOME agencies set their own minimums, which vary. Below 660, your options narrow significantly. A lender can pull your tri-merge credit report and identify the specific items dragging your score so you have a concrete repair target.
Are condominiums eligible for CalHFA MyHome?
Yes, if the condo project meets the relevant approval requirements. FHA loans require FHA condo project approval. Conventional loans require the project to be warrantable. Non-warrantable condos and co-ops generally don't qualify. Verify condo project approval status before writing an offer on any unit.
Does receiving down payment assistance affect my mortgage interest deduction?
Generally no. You pay interest on your first mortgage as usual, and that deduction is unaffected. The junior loan typically carries no monthly payment and is interest-free or low-interest while deferred. Consult a tax professional in the year you close to confirm how it applies to your specific situation.
Bottom Line
CalHOME and CalHFA down payment assistance are legitimate, widely used tools for California first-time buyers. They are not grants. They are deferred-payment loans that let you buy now and repay from your equity later, with no monthly obligation while you occupy the home.
Three concrete next steps:
- Locate your local CalHOME program. Visit the California HCD website, find your city or county's administering agency, and call to confirm whether active funding is currently available. Don't assume it exists. Verify it before you count on it.
- Get pre-approved with a CalHFA-approved lender. This single step unlocks access to MyHome Assistance and tells you exactly what first mortgage you qualify for. Do it before touring homes, not after you find one you want.
- Complete your homebuyer education course now. Both programs require it before closing. Do it online over a weekend so it never becomes a bottleneck in your escrow.
California has more first-time buyer assistance than most states. These programs exist and they work. Whether you access them comes down to whether you take the time to find out if you qualify.
This article is for educational purposes and does not constitute financial or legal advice. Program eligibility requirements, income limits, loan amounts, and guidelines change frequently. Consult with a CalHFA-approved lender or licensed mortgage professional for guidance specific to your situation.
Aditya Choksi is a licensed Loan Officer (NMLS #2055084) based in Southern California, specializing in first-time homebuyer programs, FHA loans, and bank statement loans. Licensed in California and Arizona.