Current down payment assistance guidelines, updated from one source.
One source feeds every down payment assistance page Lendmire publishes; the California figures below refresh when the program sheets are updated.
Of the purchase price
Assistance is sized as a share of the price, never a fixed sum: the biggest option covers the down payment and reaches closing costs, the smaller ones cover the 3.5% FHA minimum down payment, in whole or, on the lowest tier, in part.
Covers the FHA down payment, in whole or in part
This covers the 3.5% FHA minimum down payment in whole or, on its lower tier, in part, and is forgiven at closing: no lien on the home, no monthly payment, no interest. It opens on the area income limit or on a qualifying category.
On the forgivable and repayable options
No income cap on the forgivable and repayable options: earn what you earn. The nothing-to-repay option is the one exception, opening at or below 140% of area median income or through a qualifying category.
Credit score to start
The score that opens the nothing-to-repay option; the forgivable options start a step higher and the repayable options higher still. Two-borrower files may use a blended score on the second-lien options.
| Option | Assistance | What you repay | Credit · mortgage · units |
|---|---|---|---|
| Grant-style assistance — nothing to repay | 2% or 3.5% of the price | Nothing — released at closing | 620+ · FHA 203(b), FHA repair escrow, FHA Limited 203(k), FHA Standard 203(k) · 1–4 units |
| Forgivable second lien — three-year | 3.5% of the price | Nothing after 36 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Forgivable second lien — five-year | 3.5% of the price | Nothing after 60 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Repayable second lien — thirty-year amortization, ten-year balloon | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Closing-cost repayable second lien | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b) · 1–2 units |
| Refinance-cost second lien (repayable) | 1% to 3.5% of the balance | Second lien, repaid | 660+ · FHA 203(b) · 1–4 units |
Current down payment assistance snapshot · updated September 7, 2026 · six options offered in California · no option requires a first-time buyer · no option combines with another assistance program · owner-occupied primary residences only.
Down payment assistance options are consumer mortgage programs arranged through select wholesale lenders, licensed in sixteen states, paired with FHA, USDA, or HUD-184 first liens. Assistance is stated as a percentage of price or value, never as a dollar figure a specific borrower would receive; the forgivable and repayable options are second liens with their own disclosures. Eligibility depends on the first lien’s approval, the option’s rules, the property, and full underwriting, subject to lender program eligibility. The calculator’s rate is an editable market benchmark, not a quote, and its payment is an illustrative estimate; no fee or lender identity appears on this page. Lendmire is a mortgage broker and never the lender, and is not affiliated with or acting on behalf of FHA, VA, USDA, HUD, or the federal government. Lendmire, LLC — NMLS #2371349. Equal Housing Opportunity.
What down payment assistance is — and how the options differ.
The first-time home buyer programs in California answer the most common reason a qualified buyer does not close — the cash to close — with assistance measured on the price and shaped to the buyer’s situation.
For the program overview, see Lendmire’s down payment assistance program; for the first lien, the FHA loan program.
Assistance covers the FHA down payment
In California, the assistance attaches to the first lien at closing and covers the buyer’s required investment; on the larger option, what remains after the minimum investment goes toward closing costs.
Four shapes: grant, forgivable, repayable, refinance
Nothing to repay, forgiven over time, or repaid with a balloon: the three purchase shapes in California cover the same minimum investment and differ in what the buyer owes afterward, and a fourth, the refinance-cost option, serves an existing FHA loan.
Credit floors, mortgage programs, and unit counts
A California file is placed by three things — the credit tier, the first-lien program, and the property — and the options table on this page shows the floor, the first liens, and the unit limit for every option offered in California.
Eligibility without a first-time-buyer rule
Eligibility is broader than most buyers expect: repeat buyers qualify, income limits apply only to the nothing-to-repay option, and the categories that open it include first responders, educators, medical personnel, civil servants, and military.
The calculator below runs this math on a price you enter. Choose an assistance option offered in California and add any cash of your own; it sizes the minimum investment, the assistance, what is left for closing costs, the FHA loan with its mortgage insurance, and the payment at an editable market benchmark rate.
Where California’s first-time and moderate-income buyers shop — and how the assistance fits.
Across the California markets Lendmire tracks, the share of households that rent and the price of a median home tell the story of where assistance files come from.
Statewide figures provide general market context, not an appraisal or an income calculation. Value and income rarely move at the same pace; the market figures below show what a California home costs and how many households rent, and the calculator shows what that means for the minimum investment.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Where California’s renters live — market by market.
The California markets below are ranked by the number of renter households — the pool the program exists for — each with its own page.
Los Angeles
In Los Angeles, about 64% of households rent — near 920,674 renter households — and the metropolitan market there sees a steady flow of assisted first purchases. Census context: median value near $921,200, median household income near $81,939, population near 3.86M.
San Diego
In San Diego, about 53% of households rent — near 279,312 renter households — and the metropolitan market there sees a steady flow of assisted first purchases. Census context: median value near $906,700, median household income near $108,077, population near 1.39M.
San Francisco
Roughly 224,913 San Francisco households rent, about 62% of the total, which makes it a metropolitan market where down payment assistance closes a great many first purchases. Census context: median value near $1,394,500, median household income near $140,970, population near 830K.
San Jose
In San Jose, about 44% of households rent — near 145,219 renter households — and the metropolitan market there sees a steady flow of assisted first purchases. Census context: median value near $1,233,200, median household income near $146,427, population near 990K.
Oakland
Roughly 101,831 Oakland households rent, about 58% of the total, which makes it a metropolitan market where down payment assistance closes a great many first purchases. Census context: median value near $929,900, median household income near $101,600, population near 439K.
Long Beach
Long Beach ranks sixth by renter households among Lendmire’s California markets — roughly 100,564, about 59% of households — a metropolitan market where the down payment is the hurdle for a large share of would-be buyers. Census context: median value near $806,600, median household income near $87,430, population near 456K.
Market rankings describe where renters live, not the strength of any file; every California purchase is underwritten on its own first lien, its own credit, and its own option.
Four ways California buyers put down payment assistance to work.
From a first home to an FHA refinance, down payment assistance in California solves a specific set of problems, and the cards below take up the ones that come up most.
Buy a home that needs work with a renovation mortgage
For an older California home, the renovation first lien and the assistance fit together, with the assistance measured on the purchase price rather than the repaired value.
Pair the assistance with a USDA or HUD-184 mortgage
Where the first lien is USDA or HUD-184, the second-lien assistance options carry the file in California, forgivable or repayable by the buyer’s choice and credit profile.
Cover closing costs too on the larger option
A California buyer who needs more than the minimum investment uses the repayable option that covers down payment, closing costs, and prepaid items, including costs paid outside closing.
Buy a first home with the down payment covered
The most common California file: an FHA first lien, the assistance covering the minimum investment, and the buyer’s own funds reserved for moving costs and reserves.
Size the assistance on a California price before requesting a quote.
This tool applies the program to a California scenario: the price sets the minimum investment, the option and your cash set the down payment, and the FHA loan, mortgage insurance, and payment follow at the benchmark rate shown. Every field is editable; the rate is a market reference, not a quote.
California FHA payment with assistance
Starting assumptions reflect California’s home values; change any field and the loan, the mortgage insurance, and the payment are recalculated.
Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.
Illustrative starting assumptions: a $600,000 price held below California’s median owner-occupied home value, where an FHA first lien is realistic, the strongest assistance option offered in California applied against the FHA minimum investment, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for California (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; a repayable second lien adds its own payment, which is not shown here. Consumer mortgage lending licensed in sixteen states. Lendmire is not affiliated with or acting on behalf of FHA, USDA, HUD, or the federal government.
Same buyer, three very different closings.
A California buyer can reach the closing table several ways; the difference is where the minimum investment comes from and what it costs to carry afterward.
Assistance on an FHA loan, your own down payment, or assistance on a USDA or HUD-184 loan.
Covers the FHA minimum investment as a percentage of the price in four shapes — the lightest a nothing-to-repay option released at closing, the largest a repayable second lien that reaches closing costs and prepaids — with credit floors in the low six hundreds and no first-time-buyer rule.
Paying the minimum investment yourself keeps the closing simplest — no second lien, no category, no course; the trade is the months or years of saving that the assistance replaces. For the first lien itself, see Lendmire’s FHA loan program.
Where the property is USDA-eligible or the buyer qualifies for HUD-184, the forgivable options and the ten-year repayable option carry the California file; the separate closing-cost option is FHA only. For the USDA first lien, see the USDA loan program.
Assistance fits the buyer short of cash to close; the plain purchase fits the buyer with savings; the USDA and HUD-184 pairing fits eligible properties and borrowers — Lendmire places the California file where it reads best.
What to prepare for a California scenario review.
What a down payment assistance review usually starts with.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the mortgage, the assistance option, the property, and the eligibility category. Nothing here is legal or tax advice.
Local details that can change the loan.
The assistance is the easy part; the rules around it are where California files stall. These are the ones that most often change a file’s shape.
Use these checks to keep the California file clean and fundable.
A clean California file starts with the option chosen, the first lien matched to the property, and the homebuyer education course completed where it is required.
- Know the option: choose by cost to carry first, amount second.
- Confirm the category: settle which category applies before the application is signed.
- Confirm the property: check condominium approval and manufactured-home width.
The option decides what you owe afterward
The same minimum investment can be covered three ways on a purchase in California, and the difference is entirely in what happens after closing: nothing, nothing if the first lien stays current, or a second loan that comes due; the options table shows what is offered.
The eligibility category for the nothing-to-repay option
The category is checked at application on the nothing-to-repay option, together with the signed assistance application and the education certificate; no option requires a first-time buyer, and the second-lien options carry no income limit.
Property type and unit count select the option
The property itself can move a California file: a fourplex, a single-width manufactured home, or an unapproved condominium project each changes which option can attach, so the address is read before the option is promised.
No stacking with other assistance
No option may be combined with another down payment assistance program in California, and the nothing-to-repay and forgivable options do not combine with a high-balance first lien; one assistance option, one first lien, one closing.
Escrow holdbacks for minor repairs
A California home with a small repair list does not have to wait for the work before closing; the escrow holdback carries it, within the program’s cap and timeline, with an inspection when the work is done.
From a California pre-approval to keys with the assistance in place.
The path from a California pre-approval to keys with the assistance in place runs through the option first and the paperwork second.
Pick the option
Lendmire reads the California scenario against the options offered in California: the credit tier, the first lien, the unit count, the category, and whether the help must reach closing costs.
Get the mortgage approved
The FHA, USDA, or HUD-184 first lien runs through automated underwriting, with the assistance attached as its own loan where a second lien applies; a California buyer’s income, credit, and reserves are read the way the first lien requires.
Clear the property
The appraisal, the condominium approval where one applies, the manufactured-home title, and the county loan limit are settled; small repairs go into an escrow holdback where the option allows it.
Close both loans together
The California closing carries both instruments: the first lien and the assistance, each documented on its own and closed together, with the education certificate in the file where it applies.
A brokerage that pairs the assistance to the loan.
Down payment assistance is where a generalist stumbles: the options differ by first lien, by credit tier, by unit count, and by state, and the wholesale programs that carry them competently are a short list.
The option, matched to the buyer
Lendmire reads the options offered in California against a California buyer’s credit, first lien, property, and category before anything is ordered, and names the fit by cost to carry.
The mortgage, matched to the property
USDA where the address is eligible, HUD-184 where the buyer qualifies, FHA everywhere; the California first lien is the foundation the assistance stands on.
The right wholesale program
A California file is matched to the wholesale program whose option fits the buyer, and Lendmire manages the first lien and the assistance together through closing.
Trusted by first-time buyers & families alike.
California down payment assistance FAQs
Plain answers to the questions California buyers ask most about down payment assistance, before you request a review. Every file is underwritten individually; nothing here is a commitment.
Do I have to be a first-time homebuyer?
Not for any option. First-time status is one path into the nothing-to-repay option, not a requirement of the program.
Is there an income limit?
Income limits apply to one option only — the nothing-to-repay grant — and only for buyers outside its categories. Everything else on this page is open at any income, which is why higher-earning California households use it.
What first-time home buyer programs are available in California?
Four shapes paired with a government mortgage: a nothing-to-repay option released at closing; forgivable second liens with no interest and no payment, released after an on-time payment period; a repayable second lien with a balloon that also reaches closing costs and prepaids; and a refinance-cost option for an existing FHA loan. The options table on this page shows what is offered in California.
Do I have to pay the assistance back?
For a California buyer, the nothing-to-repay option where offered, otherwise a forgivable second lien; the options table on this page shows what each costs to carry.
What credit score do I need?
It depends on the option. The lowest floor belongs to the nothing-to-repay option; the second-lien options start higher, and the mortgage’s own rules apply on top.
Do I need a homebuyer education course?
On the nothing-to-repay option, yes — a HUD-approved course, online or in person, with the cost credited back at closing. The second-lien options do not require it, though the course is worth taking on any first purchase.
Can I use the assistance on a second home or a rental?
The assistance is for the home you live in; rentals and second homes are financed other ways.
What if my mortgage is above the county loan limit?
Only the repayable options pair with a high-balance first lien; the nothing-to-repay and forgivable options stop at the lesser of the conforming limit or the county limit.
Can I buy a duplex or a fourplex with assistance?
Yes, if you live in one of the units. The nothing-to-repay option reaches four units; the purchase second-lien options stop at two; the refinance-cost option reaches four with one unit owner-occupied.
Can I combine this with another assistance program?
The options do not stack with each other or with local, state, or employer programs; a California buyer eligible for more than one chooses the one that fits best.
Bring the California price. We will find the option.
Share the property, the price, and a little about your situation; a Lendmire loan officer names the option that fits and follows up.
This guide covers California — for the program overview and the options, see Lendmire’s down payment assistance program.
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Related programs: FHA Loans · USDA Loans · FHA 203(k) Rehab Loans