What to Ask Before Using Down Payment Assistance in California

Anyone considering buying a home in California knows that house prices make homeownership seem unachievable. After all, median home prices in the state hit $831,000 in September 2025 according to Redfin. The good news is that California offers a variety of state and local down payment assistance programs designed to make homeownership more attainable. This guide outlines the key questions to ask program administrators and lenders, and shows how TurboHome helps you make the most of down payment assistance.

1. Understand the Types of Down Payment Assistance in California

California’s down payment assistance programs come in several forms.

• Grants provide funds you don’t have to repay, often covering part of the down payment or closing costs.
  
  
• Forgivable loans act as temporary second mortgages that are erased after you meet specific requirements, such as living in the home for a set number of years.
  
  
• Deferred or low-interest second mortgages must eventually be repaid, typically when you sell, refinance, or pay off the home.
  
  

Statewide options include CalHFA’s MyHome Assistance Program while organizations like the Golden State Finance Authority (GSFA) offer programs such as Platinum. Many cities and counties, like San Diego and Los Angeles, run their own initiatives that may provide larger benefits or target specific groups such as veterans, teachers, and first responders. It’s also important to know that program availability and requirements change frequently, so confirm current offerings early in your homebuying journey.

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2. Verify Your Eligibility and Document Requirements

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Each down payment assistance program has its own set of requirements that buyers must meet. So before applying, be sure to confirm that you meet the program’s income limits, purchase price caps, and minimum credit score requirements. Most of this information will be available on the program’s website, or you can ask a knowledgeable lender or the program administrator. 

Additionally, ask whether you must be a first-time homebuyer, if homebuyer education is required, and what residency or primary occupancy rules apply before committing to the program. 

To prevent delays, you will want a check-list of required documents to prepare - such as recent tax returns, W-2s, pay stubs, bank statements, and any affidavits specified by the program. If you’re applying through a specialized track (for example, programs for veterans or public employees), you will likely need to include employment or service verification to expedite approval.

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3.  Compare Costs and Fees, and Clarify Resale Restrictions, Equity Impact and PMI Effects

Before committing to a program, take time to understand the true cost of assistance, both upfront and over time.

Ask for a detailed fee worksheet that outlines all charges, including origination, underwriting, and annual servicing fees, since these can significantly increase the overall cost of borrowing.

Clarify how interest works: does it accrue over time, remain deferred until you sell or refinance, or is the loan forgivable after you meet certain conditions?

Also confirm whether there are early repayment penalties, balloon payments, or shared-appreciation (recapture) provisions—rules that may require you to repay part of your home’s value increase when you sell. Ask how these would be calculated in different scenarios.

Finally, request sample payment illustrations from both the program administrator and your lender. Comparing these examples over various ownership time frames will help you see the long-term financial impact of each option.

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4. Map Out the Application Timeline and Lender Coordination

Before you start making offers - understanding how each step fits into your homebuying timeline is essential when using down payment assistance.

Ask how long program approval typically takes and whether you must complete homebuyer counseling or obtain a purchase agreement before funds can be processed. Timelines vary, and knowing them upfront helps you plan your offer and closing dates realistically.

Work closely with your lender and real estate agent to ensure the assistance funds are available by the time escrow closes, since delays in funding can jeopardize the entire transaction.

Finally, choose a lender familiar with your specific assistance program. Their experience helps keep documents aligned, approvals on schedule, and your purchase moving smoothly from offer to close.

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Approaching Assistance

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Down payment assistance can be a powerful tool for California homebuyers. The key is to approach these programs with the same diligence you would any major financial decision. Ask administrators and lenders for written details on eligibility, repayment terms, resale restrictions, and timelines so you can make clear comparisons and avoid last-minute surprises at closing.

Understanding how assistance affects monthly cost, repayment, equity, and PMI will help you decide whether a program genuinely improves long-term affordability or introduces trade-offs you’ll need to plan for. Partnering with experienced professionals familiar with these programs ensures that your path from offer to keys in hand stays smooth.

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What TurboHome Does and How We Help with Down Payment Assistance

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We’re not a traditional brokerage, we’re a smarter, data-driven real estate team that gives buyers a financial edge. We work closely with your lender to ensure timelines and requirements of your down payment assistance program are followed. Our flat-fee model, with commissions as low as $5,000, often saves clients around $35,000 per home purchase - money you can redirect toward becoming a homeowner. 

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Sources: CalHFA programs, CalHFA limits, GSFA programs (1,2)], San Diego first-time buyer assistance, Los Angeles programs, market context, program comparisons.

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