First-Time Home Buyer Programs in California: What Actually Exists and Who Qualifies

Most first-time buyers in California assume they need 20% down before they can even start looking. Many Vietnamese families we work with plan around that number for years, sometimes delaying a purchase far longer than necessary.

That assumption is not accurate for most buyers. California runs several state-backed programs built specifically to lower the amount of cash a first-time buyer needs at closing. Some of these programs may be accepting new reservations, while others may have limited or exhausted funding. Because CalHFA assistance depends on state funding allocations, availability can change throughout the year. One of the best-known programs is currently closed to new applicants. Knowing the difference matters, because planning around a program that is not accepting applications can cost you months.

This article walks through what actually exists today, who typically qualifies, and what to ask a loan officer before you assume any program will or will not work for you.

Most CalHFA programs use a broader definition of “first-time buyer” than people expect. You generally qualify if you have not owned and occupied a home as your primary residence in the past three years. This means someone who owned a home a decade ago, then rented for the last several years, can often still qualify as a first-time buyer today.

A separate category, “first-generation buyer,” applies to some programs and typically means neither you nor your parents currently own a home, or your parents lost a home to foreclosure. This distinction matters because a few programs are reserved specifically for first-generation buyers, while others are open to any first-time buyer.

MyHome Assistance Program. This is a silent second loan, meaning you make no monthly payments on it. It covers up to 3.5% of the purchase price toward your down payment or closing costs, paired with a CalHFA first mortgage. The loan is deferred, so it gets repaid when you sell, refinance, or pay off the first mortgage.

Forgivable Equity Builder Loan (FEBL). The Forgivable Equity Builder Loan was designed for eligible first-generation, low-to-moderate-income homebuyers purchasing with a CalHFA first mortgage. Rather than providing a fixed dollar amount, assistance could be up to 10% of the home’s purchase price, subject to program limits and available funding. If all program requirements were met, the loan could be forgiven after the required occupancy period.

Funding for FEBL has been limited in recent years, and availability can change. Before planning your purchase around this program, confirm with your loan officer whether it is currently accepting new reservations through CalHFA.

CalHFA Zero Interest Program (ZIP), paired with CalPLUS. This program covers closing costs, not the down payment itself, through a zero-interest silent second loan. It is designed to work alongside the CalPLUS first mortgage.

Minimum credit score requirements for most of these programs sit around 660, and household income must fall under CalHFA’s published limits for the county where you are buying. These limits vary significantly by county, since a household income considered moderate in one county may be well above the limit in a lower-cost area.

Dream For All is the most talked-about CalHFA program, and it is also the one most likely to confuse buyers about timing. It is a shared appreciation loan, not a grant. It can cover up to 20% of the purchase price, capped at $150,000, for down payment or closing costs. There are no monthly payments while you live in the home. When you sell, refinance, or transfer the property, you repay the original assistance plus a portion of the home’s appreciation.

The 2026 application window opened February 24 and closed March 16. Selection happens through a random lottery, not first-come, first-served, and applicants who were not selected can still use other CalHFA programs like MyHome or CalPLUS with ZIP. As of now, the portal is closed, and there is no announced date for the next round.

If a real estate agent or lender tells you to simply wait for Dream For All, treat that advice carefully. In past cycles, available funds were claimed within days of release, and there is no guarantee of when, or whether, a new round opens. If your timeline depends on buying in the next several months, it makes more sense to plan around the programs currently accepting applications and revisit Dream For All only if a new window opens.

This example is for illustration purposes only and does not reflect a specific transaction.

A buyer purchasing a $500,000 home with an FHA loan needs 3.5% down, which comes to $17,500. Paired with MyHome Assistance covering that full amount as a silent second, the buyer’s out-of-pocket down payment can drop close to zero, though closing costs and reserves still typically require some funds from the buyer.

Every program above has its own income limits, credit requirements, property eligibility rules, and funding availability. Because these programs can change over time, it is important to confirm the latest requirements before making plans around any one option.

Before moving forward, ask your loan officer:

• Is this program currently available?
• Do I meet the income and eligibility requirements?
• Can I combine it with other CalHFA assistance programs?
• Which program is the best fit for my situation based on today’s guidelines?

A Wonder Rates loan officer can check your income against current CalHFA limits and review which CalHFA programs currently have funding available for your situation, explain the eligibility requirements, and discuss alternative assistance options if a program is temporarily unavailable

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This content is for educational purposes only and is not a commitment to lend. Loan approval is subject to creditworthiness, income verification, property eligibility, and current underwriting guidelines. Programs and requirements may change without notice. Rates and terms are subject to change. Subject to credit approval.