You may need far less cash than you think

Do you count as a first-time buyer?

Probably, even if you have owned before. Most programs define a first-time buyer as someone who has not owned and occupied a primary residence in the last three years.

So you likely still qualify if you:

• Owned a home, sold it, and have rented for three years
• Lost a home to foreclosure or a short sale more than three years ago
• Are recently divorced and your name was on a home you no longer occupy, a displaced homemaker or single parent often qualifies under separate rules
• Own an investment property but have been renting the home you live in

Low down payment loans

Before any assistance program enters the picture, the loan itself may already ask very little down.

HomeReady (Fannie Mae) and Home Possible (Freddie Mac) deserve particular attention. Both allow 3% down and offer reduced mortgage insurance for buyers at or below area income limits. For a moderate-income buyer with solid credit, they frequently beat FHA on total cost, and most buyers have never heard of them.

CalHFA, California's state programs

The California Housing Finance Agency is the main source of state down payment help. CalHFA does not lend directly; you work with a CalHFA-approved loan officer who packages a CalHFA first mortgage with one of its assistance loans.

MyHome Assistance Program

The workhorse. MyHome is a small junior loan used for your down payment or closing costs, layered behind a CalHFA first mortgage. Payment is deferred, you make no monthly payment on it, and it comes due when you sell, refinance, or pay off the first mortgage.

• Must be a first-time buyer and occupy the home
• County income limits apply, and they are more generous than people expect
• Homebuyer education is required
• Pairs with CalHFA conventional or FHA first mortgages

Dream For All Shared Appreciation Loan

The headline program, and the most misunderstood. Dream For All can contribute up to 20% of the purchase price, capped at $150,000, toward your down payment.

The trade is in the name: you repay the original amount plus a share of your home's appreciation when you sell or refinance. You are selling a slice of your future gain in exchange for getting in the door today.

• First-generation requirement: at least one borrower must be a first-generation homebuyer, broadly, your parents have not owned a home, or you were in foster care.
• Lottery, not first-come: CalHFA opens a registration window, then selects recipients by randomized drawing. Applying early does not improve your odds; missing the window ends them.
• The 2026 window closed in March 2026 and funded roughly 2,000 households. CalHFA has indicated applications reopen in February, which means preparing now, not when the window opens.

Forgivable Equity Builder Loan

In past cycles CalHFA has offered a loan of up to 10% of the purchase price that is forgiven entirely after five years of continuous occupancy. Funding for this program has come and gone between cycles, so treat it as something to check availability on rather than to count on.

GSFA Platinum

Golden State Finance Authority runs an assistance program that is often overlooked because it sits outside CalHFA. Its appeal:

• You do not have to be a first-time buyer. This is the rare program open to repeat buyers.
• Assistance comes as a grant or forgivable contribution toward down payment and closing costs, depending on the option chosen.
• Income limits are comparatively generous, and it works with conventional, FHA, VA, and USDA first mortgages.

If you have owned before and assumed assistance was closed to you, this is the first door to try.

City and county programs in our area

Separate from the state, individual cities and counties run their own assistance funds. These are usually the most generous money available, and the least known, because no one advertises them.

Around here, which city you buy in matters more than almost anything else, and the boundaries surprise nearly everyone.

City of Los Angeles, LIPA

The Low Income Purchase Assistance Program, run by the Los Angeles Housing Department, is the largest single pot of money most Valley buyers can reach. It offers up to $161,000 toward down payment, closing costs, and acquisition, at 0% interest with no monthly payment, deferred until you sell or refinance.

• First-time buyers at or below 80% of area median income
• You contribute 1% of the purchase price
• Requires an 8-hour homebuyer education class and one-on-one counseling through an LAHD-approved provider

Los Angeles County

The County runs its own purchase assistance through the Los Angeles County Development Authority, covering unincorporated areas and participating cities. If you are buying in Santa Clarita, the Antelope Valley, or an unincorporated pocket, this is the door to try first.

Individual cities

Smaller cities sometimes run their own funds, with very little competition for them because almost nobody knows they exist.

Mortgage Credit Certificate

An MCC is not down payment help. it is a federal tax credit, issued by some counties, that converts a portion of the mortgage interest you pay each year into a direct dollar-for-dollar reduction of your federal tax bill.

It is worth more than a deduction of the same size, it lasts as long as you keep the loan and live in the home, and some lenders will count the benefit as income to help you qualify. Availability varies by county and funding is limited, so this must be arranged before you close, it cannot be added afterward.

Gift funds from family

A relative can gift you down payment money, and on most programs the entire down payment may be gifted. Two rules matter:

• A gift letter is required, stating the money is a gift with no expectation of repayment. If repayment is expected, it is a loan, and it changes your qualification.
• The money must be traceable. The donor will need to document where it came from. Cash deposited into an account cannot be sourced and will usually be excluded.

Get gift funds into your account at least 60 days before you apply, and the questions mostly disappear.

Homebuyer education

Nearly every assistance program requires a homebuyer education course, typically six to eight hours, available online, costing nothing or very little, and ending in a certificate valid for a limited period.

Take it early. A missing certificate is one of the most common reasons an otherwise-ready buyer cannot submit an application on time.

Five myths that cost real money

"I need 20% down."

You need 20% to avoid mortgage insurance. You do not need it to buy. Waiting years to save 20% in an appreciating market often costs more than the mortgage insurance would have.

"My credit isn't good enough."

FHA works from 580, and some programs go lower with more down. More importantly, specific scores can often be raised 20–40 points in a couple of months by paying down credit card balances below 30% of their limits, a targeted fix, not a years-long project.

"Assistance programs are only for very low incomes."

California income limits reflect California prices. In Los Angeles County a household earning well into six figures still falls within many program limits. Check the number instead of guessing it. this is the assumption that costs Valley buyers the most.

"Using assistance makes my offer weak."

It needs to be handled properly, presented clearly, with realistic timelines. Done well, a well-documented assistance offer closes. Done carelessly, it gets rejected and people blame the program.

"I should wait for prices to drop."

Maybe, maybe not, nobody knows. What is knowable is that assistance program funding is finite and competitive, and that your rent is not building equity in the meantime. The honest answer depends on your situation, which is exactly what a conversation is for.

Your first five steps