California First-Time Homebuyer Programs 2025

California’s sky‑high home prices in 2025 make buying your first home seem out of reach—but state, federal, and local programs are stepping in to help. Whether you’re seeking down payment support, preferential interest rates, or closing-cost assistance, here’s your complete, SEO‑optimized guide to first‑time homebuyer programs in California this year.

What Counts as a First‑Time Homebuyer in California?

In California (and for CalHFA programs), a first-time homebuyer typically means someone who has not owned a home in the last three years. Special exceptions often apply for veterans, displaced homemakers, or those who previously owned non-compliant properties. Always double‑check eligibility for specific programs.

CalHFA Loan Programs (2025)

The California Housing Finance Agency (CalHFA) provides 30-year fixed-rate first mortgages—eligible for conventional, FHA, VA, or USDA loans—with income limits up to $300K in high-cost regions. Approval also requires completion of a HUD-approved homebuyer education course 

Key CalHFA Programs

• CalHFA Conventional Loan
  
  • Minimum credit score: 660–680
    
  • Down payment: 3%
    
  • Primary residence only
    
  • Ideal for moderate-income buyers
    
• CalHFA FHA Loan
  
  • Credit score ≥640
    
  • Down payment: 3.5%
    
  • Comes with mortgage insurance for life of loan
    
• CalPLUS FHA / Access FHA
  
  • Pair FHA loans with CalHFA ZIP or MyAccess for closing cost assistance
    
• CalHFA VA & USDA Loans
  
  • VA: no down payment or mortgage insurance, eligible veterans only
    
  • USDA: zero down for rural homebuyers; must be used in eligible areas
    

Down Payment & Closing‑Cost Assistance

1. MyHome Assistance Program

• Up to 3% (or 3.5% with FHA) of purchase price
  
• Deferred payment, no interest until sale or refinance
  

2. Zero Interest Program (ZIP)

• Covers closing costs when paired with CalPLUS loans
  
• Interest-free, second‑loan option
  

3. California Dream For All (Shared‑Appreciation Loan)

• Assists with up to 20% down—or $150,000
  
• Repayment tied to home’s appreciation—not monthly interest
  

Local County & City Programs

Many regions offer additional funding:

• Placer County:
  Up to $100,000 in down-payment aid; currently waitlist due to overwhelming demand
  
• San Francisco Down Payment Assistance Loan Program (DALP):
  0% interest loans up to $375,000
  
• Los Angeles County, San Diego County:
  Below-market interest or deferred-payment grants (up to 17%)
  

Tip: Check your city/county’s housing department for local options—they often offer higher amounts than state programs.

Federal Homebuyer Loan Options

These national loans also help first-time buyers:

• FHA Loans:
  
  • 3.5% down with credit ≥580; 10% down if score ≥500
    
• VA Loans:
  
  • No down payment, no mortgage insurance—veterans only
    
• USDA Loans:
  
  • 100% financing for eligible rural/suburban homes 

2025 Program Highlights

• CalHFA still self‑funded, no general state funds used
  
• Local programs like Placer County paused due to funding caps
  
• California Dream for All remains popular, lottery-based
  

Frequently Asked Questions (FAQ)

Read Next

• Understanding CalHFA Loan Types & Interest Rates
• Down Payment Grants in San Diego County 2025
• How to Qualify for San Francisco’s DALP Program
  

Unlock your California dream in 2025—use these programs wisely, act quickly, and reach out to lenders who know the CalHFA process inside-out. Your homeownership journey starts here!