CalHFA MyHome Assistance Program: How California's Down Payment Aid Actually Works

Most first-time buyers in California assume state assistance programs are reserved for very low earners. That assumption disqualifies them before they even apply. A household earning $250,000 in Santa Clara County qualifies for CalHFA moderate-income programs. A teacher earning $90,000 in Los Angeles qualifies for city-level assistance on top of that. Understanding the actual numbers — and how to layer programs — is worth tens of thousands of dollars at the closing table.

What the CalHFA MyHome Program Actually Provides

The MyHome Assistance Program is a deferred-payment junior loan administered by the California Housing Finance Agency. It covers down payment and closing costs. The loan carries a 1% simple interest rate per year, but you make no monthly payments on it. Principal and accrued interest only become due when you sell the home, transfer the title, or refinance or pay off the primary mortgage.

The assistance amount depends on your primary loan type:

• FHA first mortgage: MyHome provides up to 3.5% of the purchase price or appraised value (whichever is lower)
• Conventional, VA, or USDA first mortgage: MyHome provides up to 3.0%

On a $650,000 home with an FHA loan, that means up to $22,750 toward your down payment or closing costs — delivered as a silent second mortgage that you never touch until you sell.

CalHFA Income Limits 2026: Higher Than You Expect

The most common reason buyers self-disqualify is believing they earn too much. CalHFA income limits for 2026 reflect the economic reality of each county:

These limits apply to the combined household income of all borrowers on the loan. A dual-income couple in the Bay Area earning $300,000 combined still falls within the moderate-income threshold in Santa Clara or San Francisco counties.

The "first-time homebuyer" definition also works in your favor. CalHFA defines it as not having held an ownership interest in a principal residence during the previous three years. If you owned a home and sold it four years ago, you qualify again.

One firm eligibility rule: all borrowers must occupy the property as their primary residence within 60 days of closing. Non-occupant co-borrowers are prohibited.

Stacking MyHome with CalPLUS and ZIP

CalHFA's most powerful combination for buyers with limited cash involves three programs layered together:

1. CalPLUS primary mortgage — a 30-year fixed rate loan at a slightly higher interest rate than a standard CalHFA loan
2. Zero Interest Program (ZIP) — a deferred junior loan covering 2% or 3% of the primary loan amount, earmarked specifically for closing costs, at 0% interest
3. MyHome — the down payment assistance covering up to 3.5%

By stacking CalPLUS + ZIP + MyHome, you can close a home with almost no out-of-pocket cash. The trade-off is stricter underwriting. A standard CalPLUS FHA loan requires a 660 minimum FICO score. Add MyHome to the stack and the minimum rises to 680, with the maximum debt-to-income ratio dropping from 45% to 43%.

One critical restriction: MyHome cannot be combined with a Dream For All Conventional first mortgage using the Shared Appreciation Loan. These two programs are mutually exclusive. Buyers who plan to pursue the Dream For All program should not structure their financing around MyHome stacking.

Los Angeles City Programs: LIPA and MIPA

Beyond state programs, the City of Los Angeles administers two layered assistance programs through the LA Housing Department:

LIPA (Low Income Purchase Assistance) — for households up to 80% of Area Median Income (up to $133,250 for a family of four in 2026):

• Up to $161,000 in assistance
• 0% interest, deferred
• Shared appreciation repayment upon sale or transfer

MIPA (Moderate Income Purchase Assistance) — for households at 81%–120% AMI (up to $138,700 for a family of two in 2026):

• Up to $115,000 in assistance
• 0% interest, deferred
• Shared appreciation repayment upon sale or transfer

Both programs require the property to be within the incorporated City of Los Angeles boundaries — not just Los Angeles County. The buyer must contribute at least 1% of the purchase price from their own funds (not gifted). Minimum credit score: 660 FICO.

San Diego: SDHC Middle Income Program

The San Diego Housing Commission runs distinct programs for properties within City of San Diego ZIP codes (starting with 921) and for the broader county.

City of San Diego — Middle Income Program (80%–150% AMI):

• $40,000 deferred down payment loan at 4% simple interest
• $10,000 closing cost grant, fully forgiven after 3 years of owner-occupancy
• Total: up to $50,000
• The $40,000 deferred loan converts to a 10-year amortized loan beginning in year six

County of San Diego — Low Income Program (under 80% AMI):

• Up to 22% of the purchase price for down payment, plus a $10,000 closing cost loan
• 3% simple interest, deferred for 30 years
• Maximum purchase price: $698,000
• Buyer must contribute a minimum of 3% from personal or gifted funds
• Liquid asset cap: $25,000 for a single person plus $500 per additional household member

The county program's asset cap often catches buyers by surprise. If your savings account exceeds $25,000 after accounting for the escrow deposit, you may not qualify.

What the Guide Covers

The California First-Time Home Buyer Guide walks through every CalHFA program in detail — including the specific lender approval requirements, how to navigate the loan stacking rules to maximize assistance without triggering underwriting denials, and city-by-city program breakdowns beyond LA and San Diego. It also includes worksheets for calculating your actual cash-to-close after layering state and municipal programs.

How to Apply

CalHFA programs are not applied for directly. You work through a CalHFA-approved lender who structures the primary mortgage and submits the junior loan paperwork. The CalHFA website maintains an approved lender directory.

The process:

1. Get pre-approved by a CalHFA-approved lender
2. Complete an 8-hour HUD-approved homebuyer education course (required for all CalHFA loans)
3. Your lender submits the CalHFA reservation at the time of loan origination
4. Funds are drawn at closing as part of the escrow instructions

Municipal programs like LIPA, MIPA, and SDHC have their own application portals and waitlists, separate from CalHFA. Processing times vary. Apply to city programs before entering escrow if possible — waiting until you have an accepted offer can create timing complications.

Common Mistakes That Kill the Application

Self-disqualifying on income: Check the county-specific income limits before assuming you're over the threshold. Many Bay Area and coastal buyers qualify despite six-figure household incomes.

Wrong property type: CalHFA programs require owner-occupied primary residences. Condos, townhomes, and single-family homes qualify. Second homes and investment properties do not.

Attempting to stack incompatible programs: MyHome and Dream For All Conventional cannot be combined. Structuring a financing plan around both programs will collapse in underwriting.

Skipping the education requirement: The 8-hour HUD-approved course is mandatory. Some lenders require proof of completion before issuing a CalHFA pre-approval.

Missing the occupancy timeline: You must move in within 60 days of closing. An extended move-in timeline for renovations or other reasons can violate CalHFA program terms.

California's assistance programs are genuinely powerful for first-time buyers with low down-payment cash but solid incomes. The complexity is real — but it's navigable once you understand what each program does, who it layers with, and where the disqualifying tripwires are.

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