California Homebuyer Assistance Programs: CalHFA, Dream For All, LACDA, and More

Most buyers in Southern California are leaving money on the table. Not because they negotiated poorly or picked the wrong neighborhood, but because they never heard about the assistance programs that could have reduced their down payment, lowered their interest rate, or put thousands of dollars back in their pocket at closing.

Here is a practical guide to the real programs available to homebuyers in California and Los Angeles right now.

CalHFA — California Housing Finance Agency

CalHFA is the most important starting point for any California first-time buyer. It offers several layered loan programs designed to reduce both down payment requirements and monthly costs.

MyHome Assistance Program: A deferred-payment second loan of up to 3.5% of the purchase price, which can be used for the down payment or closing costs. This loan is silent — no payments until you sell, refinance, or pay off the first mortgage.

CalHFA Zero Interest Program (ZIP): A deferred-payment junior loan at 0% interest that covers closing costs, available when combined with a CalHFA first mortgage.

CalHFA FHA Loan: A CalHFA-insured first mortgage with a fixed rate, often below market, available to income-qualifying buyers in California. Income limits vary by county.

For Los Angeles County, income limits are adjusted upward compared to inland counties — check the CalHFA website for current figures as they are updated annually.

Dream For All — California Shared Appreciation Loan

California's Dream For All program provides up to 20% of the purchase price as a shared appreciation loan — meaning no monthly payments and a competitive interest rate, in exchange for the state sharing in a portion of future appreciation when you sell. First launched in 2023, the program was oversubscribed almost immediately. It relaunched with a voucher lottery system in 2024. If you are a first-time buyer or the child of a homeowner who has never owned, this program deserves serious attention.

Los Angeles County Programs

LACDA Down Payment Assistance: The Los Angeles County Development Authority offers deferred-payment loans of up to $85,000 for qualifying buyers purchasing in unincorporated Los Angeles County. Income and purchase price limits apply.

City of Los Angeles LIPA: The Los Angeles Infrastructure and Public Assets housing programs periodically release down payment assistance for purchases within city limits. These programs open and close based on funding availability — staying on the notification list is the only reliable way to access them when they open.

VA Loans — Still the Best Deal in the Market

For eligible veterans, active-duty service members, and surviving spouses, the VA loan program remains unmatched: no down payment, no private mortgage insurance, competitive interest rates, and no loan limit in most cases. Debi Ardi and Barry Greene on our team have particular experience serving veterans navigating VA loan transactions.

USDA Rural Development Loans

Some communities on the outer edges of Los Angeles County and in Ventura County qualify for USDA Rural Development loans, which offer 100% financing with no down payment. It is worth verifying specific property addresses against the USDA eligibility map, as the definition of "rural" includes areas that may surprise you.

FHA — The 3.5% Standard

FHA loans remain the baseline for buyers with credit scores between 580 and 680, or for those who want a lower down payment without income qualifying for CalHFA. The 3.5% down requirement combined with MyHome assistance can effectively bring the out-of-pocket requirement to near zero for qualifying buyers.

How to Use These Programs Effectively

The key is layering. A well-structured first-time buyer transaction in Los Angeles might combine a CalHFA first mortgage, a MyHome junior loan, and a ZIP closing cost loan, resulting in a total out-of-pocket cost significantly below what a conventional transaction would require. The catch: not every lender participates in these programs, and the process requires a lender who knows how to stack them correctly. Ask us for a referral to lenders who specialize in exactly this.