California Down Payment Assistance
Prepared by Ye Gong · Mortgage Advisor · NMLS #360097
California has a down payment assistance program built for everyday buyers — not just people with perfect credit or six-figure savings. Here's how it works.
The State Covers Your Down Payment
The program provides your down payment as a separate loan at 1% simple interest. There is no monthly payment on it. You pay it back when you sell or refinance. That's it.
What does "silent second" mean? It's a loan that sits behind your first mortgage with no monthly payment required. You won't feel it in your budget. It only gets repaid when you eventually sell or refinance — at which point your home has likely appreciated anyway.
Depending on what you qualify for, we can structure this with either a conventional loan or an FHA loan. Either way the down payment comes from the program, not your savings.
Conventional Loan 660+ FICO
Paired with CalHFA MyHome assistance. Generally lower mortgage insurance costs. Good option if your credit score is stronger.
FHA Loan 640+ FICO
Paired with CalHFA MyHome assistance at 3.5% of the purchase price. More flexible qualification. Good option if your credit score is lower.
- To be a first-time buyer — or not have owned a home in the last 3 years
- A credit score of 640 or higher (660+ for conventional)
- To be buying a primary residence in California
- Income within CalHFA limits for your county — in Sacramento, Placer and El Dorado counties the limit is $225,000. Even the lowest income limit in California starts at $174,000. Most people are surprised by how high these limits are.
- Completion of a HUD-approved homebuyer education course
If that sounds like you, there's a good chance we can make this work. Let's find out if you qualify.