🏠 California First Time Home Buyer Programs 2025
Category: State Programs | Published: September 13, 2025 | Reading Time: 12 minutes
🎯 Quick Summary: California offers extensive first-time home buyer assistance through CalHFA programs providing up to 3.5% of loan amount in down payment assistance, below-market interest rates, and various tax benefits. This complete guide walks you through every step with a free printable checklist.
📋 Free California First-Time Buyer Checklist
Download our comprehensive printable checklist to track your progress through every step of the California first-time home buyer process.
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🖨️ Print This Guide
🏛️ California First-Time Home Buyer Programs Overview
CalHFA MyHome Assistance Program
Up to 3.5% of loan amount
The flagship program providing down payment and closing cost assistance through a silent second loan with deferred payments.
- Down payment assistance: Up to 3.5% of first mortgage loan amount
- Silent second loan: No monthly payments, simple interest
- Loan term: 30 years or when first mortgage is paid off
- Interest rate: Simple interest at below-market rates
CalHFA Conventional Loan Program
Competitive rates
Traditional fixed-rate mortgages with competitive interest rates for qualified buyers.
- Loan types: 15-year and 30-year fixed rate
- Down payment: As low as 3%
- Credit score: Minimum 660
- Available statewide: All 58 counties
CalHFA FHA Loan Program
3.5% down payment
FHA-insured loans with low down payment requirements and flexible credit guidelines.
- Down payment: As low as 3.5%
- Credit score: Minimum 580
- Mortgage insurance: FHA-required
- Debt-to-income: Up to 57% with compensating factors
✅ Step-by-Step Process for California First-Time Buyers
1
Determine Your Eligibility
First-Time Buyer Definition:
- Haven't owned a home in the past 3 years
- Single parent who owned with former spouse
- Displaced homemaker
- Individual who owned mobile home only
Income Limits (2025):
- Los Angeles County: Up to $150,550 (1-person) / $215,500 (4-person)
- Orange County: Up to $150,550 (1-person) / $215,500 (4-person)
- San Francisco County: Up to $150,550 (1-person) / $215,500 (4-person)
- Other counties: Varies by area median income
2
Complete Homebuyer Education
Required for all CalHFA programs:
- Choose HUD-approved counseling agency
- Complete 8-hour homebuyer education course
- Obtain certificate of completion
- Course must be completed within 2 years of application
💡 Tip: Many courses are available online and can be completed at your own pace. Budget 2-3 days to complete the full course.
3
Gather Required Documents
Income Documentation:
- Pay stubs for past 30 days
- W-2 forms for past 2 years
- Tax returns for past 2 years
- Bank statements for past 2 months
- Employment verification letter
Asset Documentation:
- Savings account statements
- Checking account statements
- Investment account statements
- Retirement account statements
- Gift letter (if applicable)
4
Find CalHFA-Approved Lender
Use CalHFA's Lender Directory:
- Visit CalHFA.ca.gov lender directory
- Search by your county or ZIP code
- Contact multiple lenders for rate quotes
- Verify lender offers your desired program
⚠️ Important: Only CalHFA-approved lenders can originate CalHFA loans. Working with non-approved lenders will disqualify you from the programs.
5
Apply for Pre-Approval
Submit Complete Application Package:
- CalHFA loan application
- MyHome Assistance application (if applicable)
- All required documentation
- Homebuyer education certificate
- Pre-approval fee (varies by lender)
Timeline: Pre-approval typically takes 3-5 business days
6
Shop for Homes
Property Requirements:
- Must be your primary residence
- Single-family homes, condos, townhomes eligible
- Property must meet CalHFA inspection standards
- Purchase price must not exceed county limits
2025 County Loan Limits:
- Los Angeles County: $766,550
- Orange County: $766,550
- San Francisco County: $1,149,825
- Riverside County: $647,200
- San Diego County: $766,550
7
Submit Purchase Contract
After Offer Acceptance:
- Submit signed purchase contract to lender
- Order home inspection and appraisal
- Finalize loan application
- Provide any additional documentation requested
Timeline: Standard 30-45 day escrow period
8
Complete Final Loan Processing
Underwriting Process:
- Lender submits file to CalHFA for approval
- Final income and asset verification
- Property appraisal review
- Clear any final conditions
Timeline: 7-14 days for final approval
9
Close on Your Home
Closing Day Tasks:
- Review all closing documents
- Sign loan documents and deed
- Receive keys to your new home
- MyHome Assistance funds applied at closing
💡 Pro Tip: Bring a cashier's check for any down payment amount not covered by assistance programs. Personal checks are typically not accepted at closing.
📋 Printable California First-Time Buyer Checklist
💰 California Tax Benefits for First-Time Buyers
Mortgage Credit Certificate (MCC) Program
Annual Tax Credit: Receive up to 20% of your mortgage interest as a federal tax credit each year. For example, if you pay $15,000 in mortgage interest annually, you could receive a $3,000 tax credit.
Property Tax Deductions
- State and local tax (SALT) deduction up to $10,000 annually
- Mortgage interest deduction on loans up to $750,000
- PMI deduction may be available based on income
📞 Important California Contacts
CalHFA Customer Service
- Phone: (877) 922-5432
- Website: CalHFA.ca.gov
- Hours: Monday-Friday, 8:00 AM - 5:00 PM PST
HUD Housing Counseling
- Phone: (800) 569-4287
- Website: HUD.gov/counseling
- Service: Free homebuyer education and counseling
❓ Frequently Asked Questions
How long does the CalHFA loan process take?
From application to closing typically takes 30-45 days, similar to conventional loans. Allow extra time for homebuyer education completion if not already done.
Can I use CalHFA programs for condominiums?
Yes, condos are eligible if they meet CalHFA requirements and are located in approved developments. Your lender can verify eligibility.
What happens to the MyHome Assistance loan if I sell?
The MyHome Assistance loan becomes due when you sell, refinance, or transfer the property. Any appreciation may be shared with CalHFA based on the program terms.
Are there credit score requirements?
Minimum credit scores vary by program: 660 for Conventional, 580 for FHA. Higher scores may qualify for better interest rates.
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Conclusion
California's first-time home buyer programs provide substantial assistance to help you achieve homeownership. The CalHFA MyHome Assistance Program alone can provide thousands in down payment help, while the state's various loan programs offer competitive rates and flexible terms.
Success with these programs requires careful preparation, especially completing homebuyer education early and working with CalHFA-approved lenders. Use the printable checklist above to stay organized throughout your home buying journey.
Remember that program requirements and benefits can change, so always verify current details with CalHFA or your approved lender before making decisions.
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