Current down payment assistance guidelines, updated from one source.
The snapshot below is not typed onto this page — it is pulled from one down payment assistance guideline source and refreshed when that source changes, so Daly City, CA always shows the options in force.
Of the purchase price
The largest option is a repayable second lien that covers your down payment and can reach closing costs and prepaids too; the smaller options cover the 3.5% FHA minimum down payment.
Covers the whole FHA down payment
Nothing to repay, ever: this option pays the full 3.5% FHA minimum down payment and leaves no lien behind, for buyers within the area income limit or in 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.
This page describes down payment assistance at the program level. The option for any file comes from the credit tier, the first lien, the property, and the eligibility category; the first lien’s approval, the appraisal, and full underwriting decide the actual terms, subject to lender program eligibility. Nothing here is a quote, a fee, or a commitment to lend; the calculator’s rate is a market benchmark you can edit and its payment an estimate. Lendmire is never the lender and is not affiliated with FHA, USDA, HUD, or the federal government.
What down payment assistance is — and how the options differ.
For Daly City, CA buyers, the first-time home buyer programs work the same way: the first lien carries most of the price, the assistance covers the minimum investment, and the shape of the assistance — nothing to repay, forgivable, or repayable — decides what it costs to carry.
For the program overview, see Lendmire’s down payment assistance program, or the statewide guide at Down Payment Assistance in California.
Assistance covers the FHA down payment
An FHA purchase asks for a minimum investment from the buyer; the assistance covers it, measured as a percentage of the lesser of price or value, and the largest option carries a further share for closing costs and prepaids.
Four shapes: grant, forgivable, repayable, refinance
Nothing to repay, forgiven over time, or repaid with a balloon: the three purchase shapes in Daly City, CA cover the same minimum investment and differ in what the buyer owes afterward.
Credit floors, mortgage programs, and unit counts
A Daly City 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
A Daly City buyer who has owned before is eligible; the second-lien options carry no income limit and no first-time-buyer rule, and the nothing-to-repay option opens on any one of four categories.
Enter a price, choose an option, and add your own cash. The calculator sizes the minimum investment, splits the assistance between the down payment and closing costs, and estimates the FHA payment with mortgage insurance, taxes, insurance, and dues.
Where Daly City’s first-time and moderate-income buyers shop — and how the assistance fits.
Where Daly City, CA’s renters live, what a median home costs, and what a median household earns — Census estimates give the backdrop for a down payment assistance file.
These are context figures, not underwriting inputs. In most markets, the renter households are the pool the program exists for: qualified for a payment close to their rent, short the cash to close; the assistance is the bridge from one to the other.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Daly City submarkets, distinct property rules.
Daly City’s entry-level stock is not one market. Each submarket below carries its own price points, its own property rules, and its own fit with the assistance options.
New construction and infill
New construction in Daly City works with the program; the appraisal and the builder’s timeline set the pace, and the assistance closes with the first lien like any other purchase. On a home at Daly City’s median value, the FHA minimum investment comes to about $39,000 — the figure the assistance is built to cover.
Condominiums close to work
Condominiums are often the entry point in Daly City, and the assistance follows the first lien: the building needs FHA approval, or a single-unit approval, before the down payment help can attach to it. Median gross rent in Daly City is about $2,551 a month — the payment many renters already carry.
Two-to-four-unit homes, owner-occupied
A buyer who lives in one unit of a Daly City duplex or triplex can use the program on the whole building; the option that allows up to four units makes a house-hacking purchase reachable with the minimum investment covered. Daly City counts a population near 102K.
Manufactured homes on owned land
Manufactured housing on owned land near Daly City is eligible, with the option decided by the home’s width: the nothing-to-repay option accepts single-width homes, while the second-lien options accept double-width only. Median household income in Daly City sits near $123,547 on the latest Census estimate.
Older neighborhoods and renovation loans
Renovation purchases in Daly City qualify for the assistance on the price before repairs, which lets a buyer take on a home that needs work without also finding the minimum investment. About 40% of Daly City’s households rent — roughly 12,838 renter households, the pool the program exists for.
Townhomes and attached homes
The townhome rows of Daly City are where many first purchases happen, and the assistance is designed for exactly that: the minimum investment covered, the closing costs reachable on the larger option. The median owner-occupied home value in Daly City runs near $1,115,000 on the latest Census estimate.
Market context only. The option for a Daly City file comes from the credit tier, the first lien, the property, and the eligibility category, never from the submarket.
Four ways Daly City buyers put down payment assistance to work.
Down payment assistance in Daly City, CA is used for more than a first purchase; these are the structures Daly City buyers ask about most.
Buy a two-to-four-unit home and live in one unit
House-hacking in Daly City, CA pairs with the program when the buyer occupies a unit; the unit count decides which option applies, and the first lien carries the building.
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 Daly City, forgivable or repayable by the buyer’s choice and credit.
Buy a home that needs work with a renovation mortgage
For an older Daly City home, the renovation first lien and the assistance fit together, with the assistance measured on the price rather than the repaired value.
Cover the costs of an FHA refinance
A Daly City homeowner refinancing an existing FHA loan can use the refinance-cost option, a repayable second lien sized on the balance, to cover closing costs and keep the first lien inside FHA limits.
Size the assistance on a Daly City price before requesting a quote.
This tool applies the program to a Daly City 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.
Daly City FHA payment with assistance
Seeded with Daly City’s median home value; every field is editable, and the estimate updates as you change the price, the option, your cash, or the rate.
Editable benchmark: 6.71% as of September 3, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.
Illustrative starting assumptions: a $600,000 price near Daly City’s median owner-occupied home value (kept 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, four very different closings.
Same Daly City buyer, four closings: assistance on an FHA loan, the buyer’s own minimum investment, assistance on a USDA or HUD-184 loan, or a gift from family.
Assistance on a government loan, saving the minimum, or a gift.
Assistance paired with the first lien at closing: the minimum investment covered, the shape chosen by credit, first lien, and eligibility category, and the second-lien options open to repeat buyers with no income limit.
For a Daly City, CA buyer with the cash in hand, the plain FHA purchase is the cleaner file; the assistance exists for the buyer who does not have it yet. For the first lien itself, see Lendmire’s FHA loan program.
USDA and HUD-184 first liens pair with the forgivable and repayable options, which then cover closing costs and prepaids rather than a down payment the first lien does not require. For the USDA first lien, see the USDA loan program.
Choose by what you have: cash for the minimum investment, family who can gift it, a USDA-eligible property, or none of those — the assistance is for the last case, and the most common one.
What to prepare for a Daly City scenario review.
The documents a lender reads first on an assistance file.
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 Daly City, CA files stall. These are the ones that most often change a file’s shape.
Use these checks to keep the Daly City file clean and fundable.
Settle the option, the first lien, the property’s eligibility, and the category before the appraisal is ordered; a Daly City file that clears these reads cleanly.
- Know the option: choose by cost to carry first, amount second.
- Confirm the category: remember that the second-lien options carry no income limit.
- Do not stack: expect no combination with other assistance.
The option decides what you owe afterward
The same minimum investment can be covered three ways in Daly City, CA, 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.
No stacking with other assistance
No option may be combined with another down payment assistance program, and the nothing-to-repay option does not combine with a high-balance first lien; one assistance option, one first lien, one closing.
The forgiveness clock on the forgivable options
For a Daly City, CA buyer, the forgivable options cost nothing to carry as long as the first lien stays current through the period; they are not resubordinated, not assumed, and no additional lien can be added behind them.
The balloon on the repayable option
The repayable second lien amortizes over thirty years but comes due in the tenth year; it carries interest and a monthly payment, its own loan number, and a balloon disclosure. It is the option that reaches closing costs, and it is a loan.
From a Daly City pre-approval to keys with the assistance in place.
Lendmire runs a Daly City assistance file in a set order: pick the option, match the first lien, clear the property, close both liens together.
Pick the option
Every Daly City file starts with the option and the first lien; the category, the education course, and the property rules are then settled around them, in that order.
Get the mortgage approved
The first lien’s approval carries the file; the assistance is arranged alongside it, with the eligibility category and the education certificate in hand where they apply.
Clear the property
Property review runs in parallel with the first lien; the Daly City home is checked against the option’s rules and the first lien’s, from the unit count to the association package.
Close both loans together
The Daly City 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.
Lendmire built its consumer practice around the buyers these programs exist for, which is why the options, the categories, and the property rules are familiar ground rather than surprises.
The option, matched to the buyer
A Daly City scenario is placed on the right option first — the credit tier, the first lien, and the category — and the rest of the file is then built to fit it, before anything is ordered.
The mortgage, matched to the property
USDA where the address is eligible, HUD-184 where the buyer qualifies, FHA everywhere; the Daly City, CA first lien is the foundation the assistance stands on.
The right wholesale program
A Daly City 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.
Daly City down payment assistance FAQs
Plain answers to the questions Daly City 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?
Only on the nothing-to-repay option, and only when no other category applies: household income at or below the area median income limit, measured where the property sits. The forgivable and repayable second-lien options carry no income limit beyond the mortgage’s own rules.
What first-time home buyer programs are available in Daly City?
A Daly City buyer can cover the FHA minimum investment through a nothing-to-repay option where offered, a forgivable second lien, or a repayable second lien that reaches closing costs; the calculator on this page sizes each one on a price you enter.
Do I have to pay the assistance back?
Two of the shapes: the nothing-to-repay option where it is offered, and the forgivable second liens, which are released after the on-time payment period. The repayable option is a loan.
What credit score do I need?
Lower than most buyers expect: the entry floor sits in the low six hundreds, with the second-lien options a step or two higher. Two-borrower files may qualify on a blended score on some options when the higher earner has the higher score.
What if my mortgage is above the county loan limit?
A high-balance first lien narrows the choice to the repayable options in Daly City, CA.
Can I combine this with another assistance program?
The options do not stack with each other or with local, state, or employer programs; a Daly City buyer eligible for more than one chooses the one that fits best.
What does Lendmire do on a Daly City first-time home buyer file?
The structural work: option, first lien, property, category, education, disclosures, closing. A Daly City buyer brings the contract; Lendmire brings the fit.
What property types are eligible?
Single-family homes, FHA-approved condominiums, townhomes and planned developments, owner-occupied two-to-four-unit homes within each option’s limit, and manufactured homes on owned land — single-width on the nothing-to-repay option, double-width on the second-lien options. Unique property types are outside the second-lien options.
How does a forgivable second lien work — the small second loan behind the mortgage?
You do not pay it as long as the first lien stays current through the period; after the period it is forgiven. A sale or refinance inside the period pays it off.
The down payment is the hurdle. Let us clear it.
No credit pull, no commitment: an initial review places your Daly City purchase on the right option and tells you what to gather.
This guide covers Daly City — for the statewide options, categories, and property rules, see Down Payment Assistance in California, part of Lendmire’s down payment assistance program.
Also in California: San Francisco · Temecula · Escondido · Redwood City · FHA Loans · USDA Loans