California First-Time Home Buyer Programs

Living in California doesn’t come cheap—and that’s especially true if you’re looking to buy a home. The state claims some of the highest housing prices in the country, making it especially hard for first-time buyers to catch a break.

Fortunately, the California Housing Finance Agency (CalHFA) has several programs in place to help minimize the high costs of home buying. Want to learn more about the state and federal assistance programs that can help you buy a house? This guide has them all.

In this guide:

• California First-Time Home Buyer Programs
• Other Federal Programs
• Down Payment Assistance in California
• Best Places to Buy a Home in California

California First-Time Home Buyer Programs

As a first-time home buyer in California, you’ll first want to consider programs offered through the California Housing Finance Agency. CalHFA aims to make housing in California safer and more affordable for all residents.

Highlights

• Home buyer education and counseling options
• 30-year, fixed-rate mortgage loans
• Conventional, FHA, and VA loans available
• Down payment and closing cost assistance
• Special programs for school employees and teachers
• Special programs for energy-efficient homes and improvements

Eligibility

• At least one borrower must complete CalHFA’s Homebuyer Education and Counseling course.
• You must fall under the income limits for your county.
• Your home’s sales price cannot exceed the 2019 statewide limit of $765,000. 
• The property must be under five acres.
• Single-family, one-unit residences, including approved condos are allowed.
• Guest houses, granny units, and in-law quarters may be eligible.
• Each program may have additional eligibility requirements. Keep reading for more info.

Programs Offered

There are a variety of programs offered through the California Housing Finance Agency which you can read about below.

Click a program to jump to it on this page:

• CalHFA Conventional Loan Program
• CalPLUS Conventional Loan Program
• CalHFA FHA Loan Program
• CalPLUS FHA Loan Program
• Cal-EEM + Grant Program
• CalHFA VA Loan Program

CalHFA Conventional Loan Program

The CalFHA Conventional Loan program offers 30-year, fixed-rate mortgages to qualifying first-time home buyers. They can be used on single-family, one-unit homes, including guest houses, granny units, in-law quarters, and manufactured housing. Some of these home loans require private mortgage insurance.

CalPLUS Conventional Loan Program

The CalPlus program is a 30-year, fixed-rate conventional loan program that offers closing cost assistance of up to 4% of the loan amount. This assistance is offered via a second home loan, which requires no interest and does not need to be repaid until you sell or refinance the property.

Additional Eligibility Requirements:

• You must occupy the property as your primary residence.

CalHFA FHA Loan Program

The CalHFA FHA program offers 30-year, fixed-rate mortgages guaranteed by the Federal Housing Administration. Since they’re guaranteed, these home loans may require no down payment and have lower rates. However, Lenders will require private mortgage insurance upfront and over the life of the loan.

>> Read More: FHA Loan

Additional Eligibility Requirements:

• You must occupy the property as your primary residence.

CalPLUS FHA Loan Program

The CalPLUS FHA loan program offers FHA-insured loans, plus up to 4% closing cost assistance via a zero-interest second loan. The second loan does not need to be repaid until you sell or refinance the property. Interest rates on CalPLUS FHA loans may be slightly higher than rates received through the standard CalHFA program.

Additional Eligibility Requirements:

• You must occupy the property as your primary residence.

Cal-EEM + Grant Program

This loan program offers 30-year, FHA-insured Energy Efficient Mortgages combined with the Cal-EEM Grant, which provides additional funds for making energy-efficient improvements on your home. 

Additional Eligibility Requirements:

• You must occupy the property as your primary residence.
• You must get a home energy assessment, per FHA EEM guidelines. The home may also be subject to a Home Energy Rating System report.

CalHFA VA Loan Program

CalHFA’s VA loan program offers 30-year, fixed-rate mortgages for veterans and active military members. These loans are insured by the Department of Veterans Affairs.

Additional Eligibility Requirements:

• You must occupy the property as your primary residence.
• You must obtain a Certificate of Eligibility from the VA and meet VA service requirements.

Other Federal Programs

In addition to the FHA, VA, and numerous California first-time home buyer programs that are available, there are also several federal programs that can help you purchase a home.

Here are just a few:

• USDA Loans: These are zero-down-payment loans for use on eligible rural properties throughout the U.S. They’re guaranteed through the Department of Agriculture.
• Good Neighbor Next Door Program: This program offers a 50% discount on certain single-family homes owned by the Housing Department of Urban Development. Only teachers, police officers, firefighters, and other types of public servants are eligible.
• Fannie Mae/Freddie Mac Loans: Fannie Mae and Freddie Mac offer conventional loans with down payments as low as 3%.
• Native American Direct Loan Program: This loan program offers zero-down-payment mortgages for Native American veterans. They must be used to buy or build a home located on Federal Trust Land.

Down Payment Assistance in California

In addition to the state’s many first-time home buyer loan options, there are also several down payment assistance programs in California. These can help you minimize the up-front costs of buying a home.

>> Read More: How Much House Can I Afford?

Highlights

• Down payment and closing cost assistance is available
• No interest is charged on assistance
• Special programs are available for teachers and school employees

Eligibility:

• You must be a first-time home buyer.
• You must occupy the home as your primary residence.
• At least one borrower much complete CalHFA’s Homebuyer Education and Counseling course.
• You must fall under the income limits for your county.
• Your home’s sales price cannot exceed the 2019 statewide limit of $765,000. 
• The property must be under five acres.

MyHome Assistance Program

The MyHome program offers closing cost and down payment assistance up to 3.5% of the home’s purchase price. This is provided via a no-interest second loan, which doesn’t require payment until the property is sold or refinanced.

School Teacher and Employee Assistance Program (School Program)

This program provides closing cost and down payment assistance up to 4% of the home’s purchase price. It is only available to California K-12 teachers, administrators, and employees. Staff members at charter schools are also eligible. 

Additional Eligibility Requirements:

• You must be a teacher, administrator, employee, or staff member of a California public school district or charter school.

Best Places to Buy a Home in California

If you are considering buying a home for the first time in California, you may be trying to figure out where to live. With so many towns and cities across The Golden State, it can be hard to decide.

In order to help you make this decision, LendEDU has put together a list of the Best 250 Places to Buy a Home in California based on affordability, projected population growth, and projected income growth.

Rank	City	County	Value	Population	Income	Total
1	Mojave	Kern	39.8	39.04	19.22	98.06
2	California City	Kern	40	38.64	17.8	96.44
3	Imperial	Imperial	38.12	39.8	16.3	94.22
4	Bakersfield	Kern	36.6	39.48	18.08	94.16
5	Ridgecrest	Kern	39.24	37.4	17.18	93.82
6	Lamont	Kern	38.88	36.48	18.12	93.48
7	Taft	Kern	39.56	34.44	19.06	93.06
8	Tehachapi	Kern	36.72	38.2	18.02	92.94
9	Hanford	Kings	36.04	38.52	18.2	92.76
10	Lemoore	Kings	34.76	38.08	19.56	92.4
11	Rosamond	Kern	37.84	36.64	17.8	92.28
12	Williams	Colusa	35.36	37.04	19.66	92.06
13	Lake Isabella	Kern	38.92	34.92	17.62	91.46
14	Clovis	Fresno	35.96	37.88	17.06	90.9
15	Armona	Kings	38.24	34.12	18.48	90.84
16	Corcoran	Tulare	37.4	37.96	15.4	90.76
17	Frazier Park	Ventura	36.72	33.52	19.84	90.08
18	Coarsegold	Madera	34.76	37.56	17.64	89.96
19	Pixley	Tulare	37.4	36.72	15.58	89.7
20	Springville	Tulare	37.4	35	17.1	89.5
21	Holtville	Imperial	33.2	36.28	19.78	89.26
22	Shafter	Kern	32.76	39.36	17.1	89.22
23	Tipton	Tulare	36.72	37.52	14.72	88.96
24	Wheatland	Yuba	33.2	36.04	19.62	88.86
25	El Centro	Imperial	33.2	37.16	18.26	88.62
26	Tulare	Tulare	34.76	36.76	17.04	88.56
27	Colusa	Colusa	36.04	32.52	19.86	88.42
28	Live Oak	Sutter	33.2	36.16	18.82	88.18
29	Porterville	Tulare	35.24	33.8	19.1	88.14
30	Wasco	Kern	31.6	39.12	17.3	88.02
31	Visalia	Tulare	33.08	36.84	17.74	87.66
32	Orosi	Tulare	35.36	32.88	18.66	86.9
33	Marysville	Yuba	30.04	36.6	19.74	86.38
34	Avenal	Kings	33.2	35.72	17.44	86.36
35	Brawley	Imperial	31.72	35.16	19.44	86.32
36	Gustine	Merced	30.04	39.24	16.88	86.16
37	Farmersville	Tulare	35.36	32.48	18.3	86.14
38	Arbuckle	Colusa	28.44	37.68	19.52	85.64
39	Woodlake	Tulare	38.44	31.12	15.68	85.24
40	Lindsay	Tulare	31.72	35.4	18.02	85.14
41	Dinuba	Tulare	28.44	38.24	18.18	84.86
42	Yuba City	Sutter	31.52	35.24	17.9	84.66
43	Mc Farland	Kern	26.72	39.92	17.86	84.5
44	Planada	Merced	36.04	37.08	11.3	84.42
45	Earlimart	Tulare	27.64	36.96	19.4	84
46	Delano	Kern	28.44	38.56	16.76	83.76
47	Heber	Imperial	31.72	35.12	16.72	83.56
48	Cool	El Dorado	36.72	30.84	15.82	83.38
49	Olivehurst	Yuba	26.72	36.88	19.68	83.28
50	Oroville	Butte	36.64	29.64	16.64	82.92
51	Corning	Tehama	36.72	28.2	17.96	82.88
52	Rancho Cordova	Sacramento	31.4	35.28	16.14	82.82
53	Rescue	El Dorado	28.44	34.44	19.92	82.8
54	Valley Springs	Calaveras	33.2	30.2	19.12	82.52
55	Arvin	Kern	30.04	39.32	12.88	82.24
56	Big Bear Lake	San Bernardino	22.48	39.84	19.8	82.12
57	Ione	Amador	33.2	33.2	15.46	81.86
58	Oakhurst	Madera	30.04	38.68	12.96	81.68
59	Auberry	Fresno	36.72	27.16	17.5	81.38
60	Red Bluff	Tehama	35.36	27.76	18.2	81.32
61	Laton	Fresno	38.44	23.64	19.12	81.2
62	Willows	Glenn	37.64	24.28	19.26	81.18
63	Thermal	Riverside	37.84	38.08	5.26	81.18
64	Ivanhoe	Tulare	39.68	35.8	5.62	81.1
65	Fresno	Fresno	34.6	29.88	16.56	81.04
66	Angels Camp	Calaveras	34.76	27.88	18.32	80.96
67	Lakeport	Lake	32.76	35.56	12.62	80.94
68	Susanville	Lassen	39.24	25.76	15.86	80.86
69	Thousand Palms	Riverside	39.56	31.04	10.16	80.76
70	El Dorado Hills	El Dorado	29.76	38.44	12.22	80.42
71	Exeter	Tulare	31.72	30.8	17.78	80.3
72	Big Bear City	San Bernardino	33.2	37.84	9.2	80.24
73	Reedley	Fresno	35.36	27.28	17.34	79.98
74	Caruthers	Fresno	37.4	24.16	18.36	79.92
75	Clearlake	Lake	37.84	37.64	4.36	79.84
76	Magalia	Butte	38.12	23.84	17.7	79.66
77	Gridley	Butte	36.04	27.08	16.26	79.38
78	Winton	Merced	36.04	32.84	10.44	79.32
79	Alturas	Modoc	39.48	24	15.74	79.22
80	Sanger	Fresno	33.2	28.28	17.68	79.16
81	Chowchilla	Madera	26.72	39.16	13.18	79.06
82	Orland	Glenn	30.04	29.68	18.94	78.66
83	Shingletown	Shasta	37.84	37.32	3.48	78.64
84	Beaumont	Riverside	31.72	38.36	8.52	78.6
85	Strathmore	Tulare	30.04	29.76	18.76	78.56
86	San Joaquin	Fresno	33.2	29.44	15.58	78.22
87	Calexico	Imperial	22.48	36.4	19.32	78.2
88	Copperopolis	Calaveras	24.56	33.76	19.58	77.9
89	Selma	Fresno	33.2	27.4	17.28	77.88
90	Pollock Pines	El Dorado	33.2	31.96	12.72	77.88
91	Parlier	Fresno	24.56	34	19.18	77.74
92	Riverdale	Fresno	38.68	22.84	16.16	77.68
93	Arnold	Alpine	36.04	24.96	16.66	77.66
94	Pioneer	Amador	35.36	28.08	14.16	77.6
95	Kerman	Fresno	31.24	29.36	16.94	77.54
96	Madera	Madera	33	39	5.1	77.1
97	Pine Grove	Amador	28.44	28.64	19.96	77.04
98	Hilmar	Merced	28.44	33.44	15.02	76.9
99	Mecca	Riverside	37.84	35.96	3.08	76.88
100	Palm Desert	Riverside	28.2	34.36	14.02	76.58

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This above list considers three factors:

• Affordability Score (40%). The value a potential resident could expect from a typical home purchase in the town/city. This metric looks at the median household income compared to the median household value. Residents may find better deals on home in areas with a high score.
• Population Growth Score (40%). Projected population increase over the next five years. Areas with high population growth typically also experience an increase in real estate value.
• Income Growth Score (20%). Projected increase in residents’ incomes in a given town/city. Residents living in areas with high scores are more likely to experience an increase in income in the coming years.

Bottom Line: You Can Get Help Buying a Home in California

If you’re a first-time home buyer in California, don’t let the high cost of West Coast real estate get you down. Leverage one of these state or federal assistance programs to help ease the burden of buying your first home.

Other Resources:

• First-Time Homebuyer Programs
• Best Mortgage Lenders for First-Time Buyers
• Current California Mortgage Rates
• Mortgage Calculator
• Best FHA Lenders
• Best VA Lenders: 0% Down Payments for Veterans