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Buying a home in California can be challenging, especially for first-time buyers navigating the state’s competitive real estate market. Fortunately, there are several loan programs and assistance options available to help you get into your first home. This guide covers the best first-time homebuyer programs in California for 2025, including down payment assistance, closing cost support, and special loans for low-to-moderate income borrowers.
Key Benefits of First-Time Homebuyer Programs
First-time homebuyer programs in California can offer several advantages:
- Reduced Down Payments: Some programs allow for as little as 3% down.
- Lower Interest Rates: Special rates to make monthly payments more affordable.
- Closing Cost Assistance: Grants and forgivable loans to help cover closing costs.
- Flexible Credit Requirements: Programs with lenient credit score requirements.
- Homebuyer Education: Courses that prepare you for the homebuying process.
Top First-Time Homebuyer Programs in California for 2025
1. California Housing Finance Agency (CalHFA) Loans
CalHFA offers a variety of mortgage loans for first-time buyers, including:
- CalHFA FHA Loan – Low down payment, flexible credit.
- CalHFA VA Loan – Zero down for eligible veterans.
- CalHFA USDA Loan – Zero down for rural homebuyers.
- CalHFA Conventional Loan – Low down payment, competitive rates.
Each of these loans can be combined with down payment and closing cost assistance. Learn more about FHA loans and VA loans to see if you qualify.
2. MyHome Assistance Program
This program provides up to 3.5% of the home’s purchase price to be used toward the down payment or closing costs. It is a deferred-payment second loan, meaning no payments are required until the home is sold or refinanced.
3. CalPLUS with ZIP (Zero Interest Program)
A great option for buyers who need help with upfront costs. CalPLUS loans offer slightly higher interest rates but come with zero-interest second loans for down payment and closing costs.
4. USDA Loans
For those looking to buy in rural areas, USDA loans offer zero down payment options. They come with flexible credit requirements and lower mortgage insurance costs.
Learn more about USDA loan requirements for details.
Additional Resources for First-Time Homebuyers
- Mortgage Affordability Calculator – Determine how much you can afford (Check here).
- Loan Comparison Calculator – Compare different loan types (Try it here).
FAQs
What is the minimum credit score for a first-time homebuyer in California?
The minimum credit score depends on the loan type. FHA loans can go as low as 580, while conventional loans typically require 620 or higher.
Can first-time homebuyers get down payment assistance in California?
Yes, programs like CalHFA MyHome and ZIP provide down payment and closing cost assistance to qualified buyers.
What is the income limit for first-time homebuyer programs in California?
Income limits vary by program and county. CalHFA, for example, adjusts limits annually based on the area’s median income.
Ready to Get Started?
If you’re ready to take the first step toward homeownership, check out our Buying Your First Home guide to learn more. You can also explore your options with our affordability calculator or connect with a mortgage expert today.
Read Next
- FHA vs. Conventional Loan: Which Is Right for You?
- Understanding VA Loans
- What Credit Score Do You Need to Buy a Home?
Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
