Do I Make Too Much for California Down Payment Assistance Programs?
California DPA income limits vary significantly by county and program, ranging from approximately $148,000 in rural counties to over $316,000 in high-cost areas like the San Francisco Bay Area. If you earn a solid income in California, you may be surprised to learn that you could still qualify for down payment assistance. The key is understanding which program fits your income level and which county you plan to purchase in.
In this comprehensive guide, we break down the income limits for California's major down payment assistance programs, explain how these limits are calculated, and explore your options if you find yourself slightly over the threshold.
How California DPA Income Limits Work
California down payment assistance programs use Area Median Income (AMI) as the foundation for determining eligibility. The U.S. Department of Housing and Urban Development (HUD) calculates AMI annually for each metropolitan area and county using data from the American Community Survey.
What is Area Median Income?
Area Median Income represents the midpoint of a region's income distribution for a four-person household. Half of families in the area earn more than the AMI, and half earn less. HUD updates these figures annually, adjusting for inflation and local economic conditions.
California's Department of Housing and Community Development (HCD) takes HUD's federal figures and makes additional adjustments to ensure no county experiences a year-over-year decrease in income limits. This "Hold Harmless" policy protects homebuyers in areas where median incomes might temporarily decline.
How Programs Set Their Limits
Different California DPA programs set income limits at various percentages of AMI:
- Dream For All: Currently set at approximately 120% of AMI (reduced from 150% in earlier phases)
- CalHFA MyHome: Typically set at higher thresholds, ranging from 120% to 150% of AMI depending on the loan type
- County and local programs: Vary widely, with some targeting lower-income households and others extending to moderate-income earners
Because high-cost California counties have significantly higher median incomes than rural areas, the dollar amounts vary dramatically across the state.
CalHFA Income Limits by County (2025)
The following table shows income limits for major California counties as of June 9, 2025. Note that CalHFA offers two distinct sets of limits: one for the Dream For All program and higher limits for standard CalHFA first mortgages and subordinate loans like MyHome.
Dream For All Program Income Limits
| County | Dream For All Income Limit |
|---|---|
| Alameda | $253,000 |
| Los Angeles | $168,000 |
| Orange | $216,000 |
| Riverside | $164,000 |
| San Bernardino | $164,000 |
| San Diego | $207,000 |
| San Francisco | $295,000 |
CalHFA MyHome and First Mortgage Income Limits
| County | MyHome/First Mortgage Limit |
|---|---|
| Alameda | $316,000 |
| Los Angeles | $210,000 |
| Orange | $270,000 |
| Riverside | $205,000 |
| San Bernardino | $205,000 |
| San Diego | $258,000 |
| San Francisco | $325,000 |
Income limits effective June 9, 2025. Limits are subject to annual updates. Verify current limits with a CalHFA-approved lender before applying.
As you can see, the standard CalHFA programs (including MyHome) offer significantly higher income thresholds than Dream For All. If you exceed the Dream For All limit but fall under the MyHome limit, you still have viable options.
Dream For All vs. MyHome: Which Program Has Higher Limits?
Understanding the difference between these two flagship CalHFA programs is essential for determining your eligibility.
California Dream For All
The Dream For All Shared Appreciation Loan provides up to 20% of a home's purchase price (capped at $150,000) to help with down payment and closing costs. This is a powerful program that can eliminate the need for private mortgage insurance (PMI) entirely.
Key Features:
- Up to 20% down payment assistance (max $150,000)
- Shared appreciation loan (you repay the assistance plus a share of home appreciation when you sell or refinance)
- Requires first-generation homebuyer status for at least one borrower
- All borrowers must be first-time homebuyers
- Lower income limits (approximately 120% of AMI)
CalHFA MyHome Assistance Program
MyHome provides a deferred-payment junior loan to assist with down payment and closing costs. The amount varies based on your first mortgage type.
Key Features:
- Up to 3.5% of purchase price for FHA loans
- Up to 3% of purchase price for conventional loans
- No shared appreciation requirement
- Does not require first-generation homebuyer status
- Higher income limits (approximately 150% of AMI in many counties)
Bottom Line: If you earn too much for Dream For All but still want down payment assistance, CalHFA MyHome may be your answer.
How Household Income is Calculated
One of the most important details about CalHFA income limits is understanding exactly what income counts toward the threshold.
Borrowers Only, Not Total Household
CalHFA does not count total household income. The only income counted is from the borrowers on the loan. This is a crucial distinction that sets CalHFA apart from some other housing assistance programs.
For example, if you are purchasing a home with your spouse and your adult child lives with you but will not be on the loan, your child's income does not count toward the income limit.
What Income is Included
For borrowers on the loan, CalHFA considers:
- Base salary and wages
- Overtime and bonuses (if consistent)
- Self-employment income
- Investment income
- Rental income (if applicable)
- Alimony and child support received
- Social Security and pension benefits
The calculation uses gross income (before taxes and deductions), not take-home pay.
Non-Occupant Co-Borrowers Are Not Allowed
Unlike some conventional loan programs, CalHFA does not permit non-occupant co-borrowers or co-signers. This means you cannot add a parent or relative to the loan solely to help you qualify. All borrowers must intend to occupy the property as their primary residence.
What If You Are Slightly Over the Income Limit?
If your income exceeds CalHFA limits, you still have several paths to homeownership.
Wait for Annual Updates
CalHFA updates income limits annually, typically in June. If you are close to the threshold, the next year's increase might bring you into eligibility. The 2025 limits increased substantially over 2024 in many counties.
Consider a Different County
Income limits vary significantly between counties. If you have flexibility in where you purchase, you might find higher limits in a neighboring county. For instance, a buyer in Riverside County ($164,000 Dream For All limit) might find more favorable limits by looking at San Diego County ($207,000).
Reduce Qualifying Income Strategically
Some borrowers have legitimate options to reduce their qualifying income:
- Maximize retirement contributions: 401(k), IRA, and other pre-tax contributions reduce gross income on your tax returns
- Timing of bonuses: If your income fluctuates, consider when you apply relative to bonus payouts
- Self-employment deductions: Ensure you are taking all legitimate business deductions
Important: Never misrepresent your income on a mortgage application. This is mortgage fraud and carries serious legal consequences.
Alternative Down Payment Assistance Programs
Several California programs offer higher income limits or no income restrictions:
GSFA OpenDoors Program
- Up to 7% in down payment and closing cost assistance
- Available to both first-time and repeat homebuyers
- Higher income limits than many state programs
- Minimum credit score of 620
GSFA Platinum Grant
- 3% to 5% assistance as a non-repayable grant
- Works with Conventional, FHA, and VA loans
- Does not require first-time buyer status
Golden Opportunities Program
- Up to 5% down payment assistance
- No first-time buyer requirement
- No income limits
- Minimum credit score of 620
Programs With No Income Limits
For buyers who earn well above DPA thresholds, here are financing options that do not restrict income.
Conventional Loans With Low Down Payment
Standard conventional loans allow down payments as low as 3% for first-time buyers (or 5% for repeat buyers) with no income limits. While you will pay private mortgage insurance (PMI) until you reach 20% equity, this is a straightforward path to homeownership.
Advantages:
- No income restrictions
- No first-time buyer requirement
- PMI can be removed once you reach 20% equity
- Competitive interest rates for strong credit profiles
DSCR Loans for Investment Properties
If you are purchasing an investment property, DSCR (Debt Service Coverage Ratio) loans offer a unique advantage: they qualify based on the property's rental income rather than your personal income.
Key Features:
- No personal income verification required
- Qualification based on property cash flow
- Available for investment properties only
- Ideal for self-employed borrowers or high-income investors
Piggyback Loans (80-10-10)
A piggyback loan structure combines a first mortgage (80%), a home equity line of credit (10%), and a down payment (10%). This approach helps borrowers avoid PMI while reducing the down payment requirement.
First-Generation Homebuyer Requirement for Dream For All
The Dream For All program has a unique requirement: at least one borrower must be a first-generation homebuyer.
Definition of First-Generation Homebuyer
A first-generation homebuyer is someone whose parents do not presently own a home in the United States. Specifically:
- Your parents cannot currently own residential property
- If a parent is deceased, their homeownership status at the time of passing is used
- Anyone who was placed in foster care or institutional care as a minor automatically qualifies as first-generation
This requirement exists to help families break into homeownership when they have not had generational wealth transferred through real estate.
Not a First-Generation Buyer?
If you do not meet the first-generation requirement, you still have options:
- CalHFA MyHome: No first-generation requirement
- County DPA programs: Most do not have this requirement
- Conventional financing: No restrictions on family homeownership history
Planning Strategies to Qualify
If homeownership is your goal and you want to maximize your chances of qualifying for DPA, consider these strategies.
1. Get Pre-Qualified Early
Work with a CalHFA-approved lender several months before you plan to purchase. They can review your income documentation and identify potential issues before they become problems.
2. Complete Homebuyer Education
CalHFA requires all borrowers to complete homebuyer education and counseling through an approved provider before closing. Completing this requirement early keeps you ready when program windows open.
3. Monitor Program Announcements
The Dream For All program accepts applications during limited windows. For 2026, applications open February 24 and close March 16. Mark your calendar and have all documentation ready.
4. Build Your Down Payment Fund
Even with DPA, having additional savings strengthens your application and provides a buffer for closing costs, moving expenses, and initial home repairs.
5. Check Your Credit
CalHFA programs require minimum credit scores (typically 660-680). If your score needs improvement, address this before applying.
Frequently Asked Questions
What is the maximum income to qualify for California down payment assistance?
California DPA income limits range from approximately $148,000 in rural counties to over $316,000 in high-cost areas like San Francisco and Alameda County. The exact limit depends on your county and which program you are applying for. Dream For All has lower limits than CalHFA MyHome and standard first mortgage programs.
Does CalHFA count all household income or just borrower income?
CalHFA only counts income from borrowers on the loan. Income from other household members who are not on the mortgage application is not included in the calculation. This means adult children or elderly parents living with you do not affect your eligibility if they are not borrowers.
Can I qualify for Dream For All if my parents own a home?
At least one borrower must be a first-generation homebuyer, meaning their parents do not currently own a home in the United States. If you do not meet this requirement but your spouse or co-borrower does, you may still qualify. If neither borrower qualifies, consider CalHFA MyHome instead, which has no first-generation requirement.
When do CalHFA income limits update?
CalHFA typically updates income limits annually, with new limits becoming effective in June. The 2025 limits became effective on June 9, 2025. Limits generally increase over time to keep pace with rising median incomes.
What happens if I am just slightly over the income limit?
If you are slightly over the limit, consider waiting for the next annual update, looking at counties with higher limits, or exploring alternative programs like GSFA OpenDoors or Golden Opportunities that have higher or no income restrictions. You can also maximize pre-tax retirement contributions to reduce qualifying income.
Are there down payment assistance programs with no income limits?
Yes. The Golden Opportunities program and certain conventional loan products have no income limits. Additionally, DSCR loans for investment properties qualify based on property income rather than borrower income, making them accessible regardless of personal earnings.
Take the Next Step
Understanding California DPA income limits is the first step toward determining your path to homeownership. Whether you qualify for Dream For All, CalHFA MyHome, or need to explore conventional financing options, the right guidance makes all the difference.
Ready to find out exactly which programs you qualify for? Apply now for a personalized assessment of your down payment assistance options. Our team specializes in helping California buyers navigate the full range of financing programs available.
Last verified: January 2026. Income limits and program details are subject to change. Consult with a CalHFA-approved lender to confirm current eligibility requirements.
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