California down payment assistance comes from county programs, nonprofits, and lender-specific offerings—not a single state fund

California has no single statewide down payment assistance program. Instead, help comes from three separate channels: county housing authorities, nonprofit organizations, and individual lenders or loan programs. Which one you can use depends on your income, the county where you're buying, the price of the home, and whether you're a first-time buyer. Some programs stack—you can use more than one at the same time—while others don't.

The most common route is through your county's housing authority or a nonprofit like NeighborWorks or a local community development corporation. These programs typically cover 3 to 20 percent of your down payment, though the exact amount and the rules about who qualifies shift from year to year and sometimes month to month as funds run out.

Before you look for down payment help, you need to know: your household income, whether you've owned a home in the past three years, the purchase price of the home you're targeting, and which county the property is in. Have those details ready when you contact a program.

Key Takeaways

  • Down payment assistance in California comes from county housing authorities, nonprofits, and lender programs—not from a single state source.
  • Most programs require you to be a first-time homebuyer (or not to have owned in the past three years) and to have income below a certain threshold, which varies by county and family size.
  • Your county housing authority or a 211 referral can tell you which programs are currently open in your area, since funds run out and reopen throughout the year.
  • Some programs offer grants (money you don't repay), while others are forgivable loans (you repay only if you sell within a set time) or second mortgages (you repay over time).
  • Down payment assistance often comes with a requirement to complete homebuyer education, which takes 4 to 8 hours and is usually free.

County housing authorities and what they typically cover

Your county housing authority is usually the fastest place to start. Most California counties run their own down payment assistance programs, though the name, the amount, and the income limits differ. Santa Clara County calls theirs the First-Time Homebuyer Program. Los Angeles County runs several, including the Community Development Commission's down payment assistance. Alameda County has the Housing Authority's First-Time Buyer Program. The structure is similar across most counties: they cover a percentage of your down payment, require you to be a first-time buyer or not to have owned in the past three years, and set income limits based on the area median income for your county.

Income limits in California counties range widely. In rural counties, the limit might be 80 percent of area median income. In expensive coastal counties like San Francisco or San Diego, programs often go up to 120 percent of area median income to account for the higher cost of living. A family of four in San Francisco County might have an income limit around $180,000, while the same family in a rural county might have a limit around $110,000. Call your county housing authority directly to learn the current limit for your household size.

County programs usually require proof of income (recent tax returns or pay stubs), a signed purchase agreement, proof you've completed homebuyer education, and a credit score in the range of 620 to 680 or higher, depending on the program. Processing typically takes 2 to 4 weeks after you submit everything.

Nonprofit organizations and community development corporations

Nonprofits like NeighborWorks, Catholic Charities, Jewish Family Services, and local community development corporations run down payment assistance in many California counties. These organizations often partner with county housing authorities or operate independently. Some focus on specific communities or neighborhoods; others serve entire regions. A nonprofit might offer down payment help as a grant, a forgivable loan, or a second mortgage, depending on the program.

Nonprofit programs often have the same income and first-time-buyer requirements as county programs, but some are more flexible. A few target specific populations—farmworkers, teachers, healthcare workers, or people in certain neighborhoods. The amount of help ranges from $5,000 to $50,000 or more, depending on the program and the home price. Some nonprofits also bundle down payment assistance with free homebuyer counseling, which can strengthen your mortgage application.

To find nonprofits in your area, call 211 (dial 2-1-1 from any phone) and ask for down payment assistance programs. You can also search the NeighborWorks website for member organizations near you, or contact your city's housing department to ask which nonprofits they refer people to.

Lender-specific programs and loan products

Some mortgage lenders and loan programs offer built-in down payment assistance. Fannie Mae's HomeReady program and Freddie Mac's Home Possible program both allow down payments as low as 3 percent and include down payment assistance in some cases. CalHFA (California Housing Finance Agency) offers the CalHFA Conventional Loan Program, which can include down payment help for first-time buyers. Some credit unions and community banks also have their own down payment assistance tied to getting a mortgage through them.

These lender programs usually require a credit score of 620 or higher, proof of income, and a debt-to-income ratio below 50 percent. The down payment assistance from a lender is often a grant or a second mortgage that you repay over time. The advantage is that you can learn about down payment help and your mortgage options in one conversation. The disadvantage is that you're limited to lenders who offer the program, and the terms may not be as generous as a standalone nonprofit program.

Forgivable loans, grants, and second mortgages: what you actually repay

Down payment assistance comes in three forms, and the form matters because it changes what you owe later. A grant is money you don't repay under any circumstance. A forgivable loan is money you repay only if you sell the home or refinance within a set time—usually 5 to 15 years. After that time passes, the loan is forgiven and you owe nothing. A second mortgage is a loan you repay over time, usually 10 to 30 years, with a monthly payment added to your mortgage bill.

Most California county programs offer forgivable loans, which means you get the down payment help upfront but must stay in the home for the forgiveness period. If you sell or refinance before the period ends, you repay the assistance from the sale proceeds or refinance funds. Nonprofits are more likely to offer grants or forgivable loans. Lender programs often structure down payment assistance as a second mortgage, which means a monthly payment you're responsible for immediately.

Before you accept down payment assistance, ask the program: Is this a grant, a forgivable loan, or a second mortgage? If it's forgivable, how long must you stay in the home? If you sell before that time, do you repay from the sale price, or is it forgiven anyway? If it's a second mortgage, what's the monthly payment and the interest rate? These details change your total cost of homeownership.

Income limits, first-time-buyer rules, and other requirements

Most down payment assistance programs in California require you to be a first-time homebuyer, which usually means you have not owned a home in the past three years. Some programs define it differently—you might still be a first-time buyer if you're a single parent, a displaced homeowner, or buying in a specific neighborhood. Ask the program how they define first-time buyer before you assume you don't may have access to.

Income limits are set as a percentage of area median income (AMI) for your county and family size. A program might say "up to 80 percent AMI" or "up to 120 percent AMI." The higher the percentage, the more income you can have and still may have access to. In 2024, 80 percent AMI for a family of four ranges from about $85,000 in rural counties to over $200,000 in San Francisco County. These numbers change yearly, so ask the program for the current limit for your household size and county.

Most programs also require a credit score of at least 620, though some ask for 640 or 660. You'll need to show proof of income (tax returns, W-2s, or pay stubs), a signed purchase agreement, and proof of homebuyer education completion. Some programs require that you work with a HUD-approved housing counselor before you apply.

Homebuyer education and counseling requirements

Nearly every down payment assistance program in California requires you to complete homebuyer education before you can receive help. This is a class or workshop that covers how mortgages work, how to budget for homeownership, what to expect at closing, and how to avoid predatory lending. Most programs accept any HUD-approved homebuyer education course, which means you have options.

Homebuyer education typically takes 4 to 8 hours and is offered in person, online, or hybrid. Many nonprofits and county housing authorities offer it for free. Some charge $50 to $200. You can find HUD-approved courses through your county housing authority, through 211, or by searching the HUD website for counseling agencies in your area. Complete the course before you apply for down payment assistance, and keep your certificate—you'll need to show it when you submit your application.

Some programs also require one-on-one housing counseling with a HUD-approved counselor, which is usually free and covers your specific financial situation, credit, and readiness to buy. This can take 1 to 3 hours and happens before or after you apply, depending on the program.

How to find and apply for down payment assistance in your county

Start by calling your county housing authority directly. Search online for "[Your County] housing authority down payment assistance" or "[Your County] first-time homebuyer program." Most housing authorities have a website listing their programs, income limits, and how to apply. If you can't find your county's program, call 211 and ask for down payment assistance in your area—211 staff know which programs are currently open and can refer you to the right place.

When you call, ask: Is the program currently open? What is the income limit for my household size? Do I need to be a first-time buyer? What documents do I need to apply? How long does approval take? Is homebuyer education required, and where can I take it? Write down the answers and the name of the person you spoke to, in case you need to follow up.

Once you've identified a program, gather your documents: recent tax returns or pay stubs, bank statements showing your savings, a signed purchase agreement, proof of homebuyer education, and identification. Submit your application to the program—some accept applications online, others by mail or in person. Ask for a timeline: most programs respond within 2 to 4 weeks, but some take longer if funds are limited.

Frequently Asked Questions

Can I use down payment assistance if I already have a mortgage pre-approval?

Yes. In fact, most programs require a pre-approval letter as part of your application. Get pre-approved first, then apply for down payment assistance. Some lenders offer down payment assistance as part of their pre-approval, so ask your lender whether they have a program before you look elsewhere.

What happens if I sell the home before the forgivable loan period ends?

You repay the down payment assistance from the sale proceeds. If you sell a home you bought with a $30,000 forgivable loan and the forgiveness period is 10 years, but you sell after 5 years, you repay the $30,000 from what you make on the sale. If you don't make enough to repay it, ask the program whether they'll forgive the remaining balance—some do, some don't.

Do I have to use down payment assistance from my county, or can I use a nonprofit program instead?

You can use either, and some programs stack. You might use your county program for part of the down payment and a nonprofit program for the rest. Ask each program whether they allow stacking before you apply to multiple programs.

What if my income is above the limit but I still need help with the down payment?

Some lender programs have higher income limits than county programs, so ask your mortgage lender about their options. You might also look for nonprofit programs that target specific professions or neighborhoods, which sometimes have different income rules. If no programs work, consider saving longer or looking at homes in a lower price range.

Can I use down payment assistance if I'm buying with a co-buyer or spouse?

Yes. Income limits are based on household income, so both your incomes count. You both need to meet the first-time-buyer requirement unless the program makes exceptions for certain situations. Ask the program how they calculate household income when there are multiple buyers.