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Down Payment Assistance in California — Grants & Programs for First-Time Buyers

The down payment is often the biggest barrier to homeownership. The good news? California offers some of the most generous down payment assistance programs in the nation. From state-funded grants to local programs and forgivable loans, you may qualify for $10,000 to $150,000+ toward your home purchase.

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California State Down Payment Assistance Programs

California offers several state-funded programs to help first-time buyers with their down payment and closing costs.

California Dream For All Shared Appreciation Loan

California's flagship program — up to 20% of the purchase price (up to $150,000)

How it works

State provides up to 20% down payment as a silent second loan

Repayment

When you sell, refinance, or pay off first mortgage

Shared appreciation

Repay original amount plus share of home's appreciation

Income limits

Vary by county (up to 150% of area median income)

First-time buyer

Yes (or haven't owned in 3 years)

Availability

Limited funding — opens annually and depletes quickly

CalHFA MyHome Assistance Program

Deferred-payment junior loan up to 3.5% of purchase price

Maximum assistance

3.5% of purchase price or appraised value

Repayment

Deferred until sale, refinance, or payoff

Interest

Simple interest at the rate of your first mortgage

Income limits

CalHFA income limits by county

Can combine with

CalHFA first mortgage programs

Eligible properties

Single-family homes, condos, and manufactured housing on permanent foundations

Bay Area Local Down Payment Assistance Programs

In addition to state programs, many Bay Area counties offer their own assistance programs for local buyers.

San Francisco

DALP (Down Payment Assistance Loan Program)

Up to $500,000

Income-restricted, lottery-based

San Mateo County

HEART Program

Up to $200,000

Deferred loan for essential workers

Santa Clara County

Empower Homebuyers

Up to $200,000

Low-to-moderate income buyers

Alameda County

Homebuyer Program

Up to $100,000

Deferred second mortgage

Contra Costa County

First-Time Buyer Program

Up to $50,000

Down payment assistance

Marin County

Below Market Rate (BMR)

Up to $150,000

Income-qualified homebuyers

Down Payment Assistance Eligibility Requirements

General requirements across most programs:

First-time buyer status

Haven't owned in past 3 years (exceptions for some programs)

Income limits

Typically 80-150% of Area Median Income

Primary residence

Must occupy as primary home

Homebuyer education

Most require HUD-approved course completion

Credit score

Usually 640-680 minimum

Property limits

Maximum purchase price varies by program and county

Income Limits Example (2024)

County80% AMI (1 person)120% AMI (4 person)
San Francisco$82,200$175,920
Santa Clara$89,600$191,760
Alameda$82,200$175,920
San Mateo$89,600$191,760
California suburban neighborhood

Types of Down Payment Assistance

Understanding the different types helps you choose the best option for your situation.

Grants

Free money — no repayment required.

Best for: Maximum benefit, limited availability

Forgivable Loans

Forgiven after 5-10 years of ownership.

Best for: Planning to stay long-term

Deferred Loans

No payments until sale/refinance/payoff.

Best for: Reducing monthly costs now

Shared Appreciation Loans

Repay original plus share of appreciation.

Best for: Accessing larger assistance amounts

Repayable Loans

Monthly payments required.

Best for: Those who don't qualify for other options

Employer-Assisted Housing

Employer provides funds toward your down payment.

Best for: Tech, healthcare, and education workers

How to Apply for Down Payment Assistance

1

Determine Eligibility

Check your income, first-time buyer status, and county program availability.

2

Complete Homebuyer Education

Take a HUD-approved homebuyer education course (typically 8 hours).

3

Get Pre-Approved

Work with a participating lender — not all lenders offer DPA programs.

4

Apply for Programs

Submit applications for specific programs through your approved lender.

5

Find Your Home

Search for homes within the program's price limits and eligible areas.

6

Close with DPA Funds

DPA funds are applied to your down payment and/or closing costs at closing.

Important: Many programs have limited funding. Apply early and work with experienced DPA lenders.

Loan Programs for Every Need

We offer a comprehensive range of mortgage products. The right loan depends on your situation, goals, and financial profile — and we'll help you find the perfect fit.

DSCR Loans

Best for: investors qualifying by rental income.

How it works: Approval is based on property cash flow, not personal income.

Key features:

  • No personal income docs
  • 620+ credit, 20–25% down
  • Unlimited properties
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Conventional Investment Loans

Best for: strong W-2 investors.

How it works: You qualify using personal income, credit, and assets.

Key features:

  • Lowest rates
  • 620+ credit (700+ ideal)
  • Up to 10 properties
Get More Info

Portfolio Loans Options

Best for: complex or large portfolios.

How it works: Lender creates a custom loan outside standard guidelines.

Key features:

  • Flexible underwriting
  • Finance 10+ properties
  • Relationship-based
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Fix & Flip (Bridge Loans)

Best for: renovate-and-sell investors.

How it works: Short-term loan for purchase and rehab, repaid at sale or refi.

Key features:

  • Fast closings (7–14 days)
  • Based on ARV
  • Covers purchase + rehab
Get More Info

Cash-Out Refinance (Investors)

Best for: pulling equity to reinvest.

How it works: Refinance and extract cash from existing property value.

Key features:

  • Access up to 75–80% value
  • Use funds for any purpose
  • DSCR or conventional options
Get More Info

Blanket Loans

Best for: multiple properties.

How it works: One loan covers several properties under one payment.

Key features:

  • One loan, one payment
  • Finance 5+ properties
  • Portfolio consolidation
Get More Info

Short-Term Rental Loans

Best for: Airbnb/VRBO investors.

How it works: Qualify using projected or actual short-term rental income.

Key features:

  • DSCR-based
  • 20–25% down
  • Uses STR income data
Get More Info

Bank Statement Loans

Best for: self-employed borrowers without traditional income docs.

How it works: You qualify using 12–24 months of bank deposits instead of tax returns.

Key features:

  • No W-2s or tax returns
  • Personal or business statements
  • 620+ credit typical
  • 10–20% down
Get More Info
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DPA Questions, Answered

Everything you need to know about down payment assistance. Can't find your answer? Reach out and we'll help.

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Ready to Explore Down Payment Assistance?

Down payment assistance can make homeownership possible years sooner than saving alone. Let us help you find programs you qualify for.

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