Down-Payment Assistance Programs Every California Buyer Should Know

Understanding California Down-Payment Assistance: Loans, Grants & Matched-Savings

Down-payment assistance, or DPA, helps buyers cover upfront cash for down payments and closing costs. This can have a big impact in California where the median home price hit $899,140 in August 2025, according to the California Association of Realtors. This means an average homebuyer would need to save nearly $180,000 for a “traditional” 20% down payment on the median home, or over $30,000 if using a 3.5% down FHA loan - dollar amounts that are harder than ever for buyers to save. 

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Understanding California Down-Payment Assistance: Loans, Grants & Matched-Savings

Currently available down-payment assistance (DPA) programs generally fall into two main types:

1. Forgivable grants – funds that never have to be repaid if you meet the program’s requirements, such as living in the home for a set number of years.
   
   
2. Deferred-payment or shared-appreciation loans – “silent seconds” that don’t require monthly payments but must be repaid (sometimes with a share of equity gain) when you sell, refinance, or pay off the first mortgage.
   
   

Each type affects monthly payments, loan-to-value ratio, and long-term affordability differently. Buyers should compare how a deferred loan (a loan that’s repaid later) changes future costs versus a grant that permanently lowers the mortgage balance.

Sources of DPA programs include state agencies, local housing authorities, nonprofits, and employer-sponsored funds. It is an ever-changing landscape of options as funds become available, run out, or new policies are passed. The seasoned Real Estate professionals at Turbohome stay on top of the evolving DPA options, eager to help first-time homebuyers navigate the options available to them, while ready with AI tools to estimate how each program changes a buyer’s required cash to close, and monthly payment.  

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Top Statewide Programs Every Buyer Should Know (as of late 2025)

CalHFA MyHome Assistance Loan
The MyHome Assistance Loan from the California Housing Finance Agency (CalHFA) provides up to 3% of the purchase price or appraised value on conventional loans and up to 3.5% on FHA loans. It’s a deferred-payment junior loan, meaning you don’t make monthly payments on it. The balance becomes due only when you sell, refinance, or pay off your first mortgage.

CalPLUS with ZIP (Zero Interest Program)
CalPLUS with ZIP adds a 0% interest loan for closing costs—typically 2% to 3% of the first mortgage amount—when paired with a CalPLUS first mortgage. As of 2025, ZIP loans must be used together with MyHome and can help reduce upfront costs, though they usually come with a slightly higher interest rate on the main loan.

GSFA Platinum Program

The GSFA Platinum Program (Golden State Finance Authority) offers up to 5.5% of the loan amount in down-payment or closing-cost assistance. Most of the assistance is in the form of a second loan, which you do pay back over time, However there are additional options for buyers in police, fire, medical or teacher professions where a portion of the DPA is in the form of a gift that you don’t ever need to pay back. Unlike most CalHFA programs, GSFA Platinum also allows repeat buyers and accepts credit scores as low as 640.

Regional & Local Assistance: Bay Area, L.A., San Diego & Beyond (with currently active programs)

Bay Area (Santa Clara, Alameda, Contra Costa, etc.)

• Housing Trust Silicon Valley — Homebuyer Empowerment Loan Program (HELP)
  This is the current active program (as of 2025) for first-time buyers in Santa Clara County (and in some cities like Menlo Park or East Palo Alto). Under HELP:
  
  • You can borrow up to 10% of the purchase price as a deferred, shared‐appreciation loan (no monthly payments). Housing Trust Silicon Valley
  • You repay the principal plus a share of the home’s appreciation when you sell, refinance, or the loan term ends. Housing Trust Silicon Valley

Los Angeles County & Surrounds

• LACDA Home Ownership Programs: HOP80 / HOP120
  
  • These remain active. They offer deferred second mortgages / shared-equity assistance to first-time buyers. LACDA+1
  • HOP80: assistance up to $100,000 or 20% of purchase price (whichever is less). LACDA
  • HOP120: a related program with similar structure (lesser cap). LACDA
  • The assistance is 0% interest, deferred, with shared appreciation. LACDA

Los Angeles City — LIPA / MIPA / MCC (via Los Angeles Housing Department, LAHD)

• The LIPA (Low Income Purchase Assistance) and MIPA (Moderate Income Purchase Assistance) programs are active for City of Los Angeles, providing loans to cover down payment, acquisition, and closing costs. Housing L.A.
• MCC (Mortgage Credit Certificate) is also offered by LAHD to eligible first-time buyers, giving a tax credit based on 20% of interest paid. Housing L.A.

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San Diego County & City

• San Diego City — SDHC First-Time Homebuyer Program
  
  • SDHC publishes a First-Time Homebuyer Program Summary that is current (2025). SDHC
  • Low-income category (< 80% AMI): Deferred second loan up to 19%, up to $125,000, plus closing cost grants of 4% (up to $10,000). SDHC
  • Middle-income category (80–150% AMI): Up to $40,000 in deferred assistance plus $10,000 in closing cost help (for certain sales-price caps). SDHC
  • For middle-income borrowers, the deferred loan is 0% interest for the first five years, then amortizes for up to 10 years. SDHC
  • The assistance is due upon sale, non-occupancy, or end of term. SDHC

Stay Connected with a Professional

Down-payment assistance programs in California are constantly evolving. Available programs can shift several times a year as new allocations are approved or older programs run out. One of the most popular programs last year (the CalHFA Dream For All Shared Appreciation Loan) shows just how competitive these programs can be. Over 30,000 Californians applied within 11 days, quickly exhausting the $300 million fund.

Most programs also come with important caveats such as income caps, homebuyer education requirements, and additional documentation. Some require a small personal contribution or that the home be your primary residence for a set period. Since funding windows open and close rapidly, start to work with TurboHome and a knowledgeable lender (even before you are ready to buy) to help ensure your paperwork, pre-approval, and strategy are ready when opportunities appear. By the time you are reading this post, some programs may have ended and new ones may be available so it’s best to contact Turbohome or a knowledgeable lender to learn of the programs you specifically may qualify for.

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What TurboHome is and how we help

TurboHome is a modern, commission-free real estate brokerage that replaces traditional commission models with a transparent flat fee. TurboHome provides 1:1 buyer consultations, fast private showings, and full contract-to-close coordination so first-time buyers can stack assistance programs and submit winning offers.

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