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.
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 First-Time Home Buyer Checklist
Pre-Application Preparation
Verify first-time buyer eligibility (no home ownership in past 3 years)
Check income limits for your county
Complete HUD-approved homebuyer education course
Obtain homebuyer education certificate
Document Collection
Pay stubs for past 30 days
W-2 forms for past 2 years
Tax returns for past 2 years (complete with schedules)
Bank statements for past 2 months (all accounts)
Employment verification letter
Social Security card and driver's license
Investment/retirement account statements
Gift letter and gift funds documentation (if applicable)
🏦 Lender Selection & Pre-Approval
Research CalHFA-approved lenders in your area
Contact multiple lenders for rate quotes
Submit complete loan application
Apply for MyHome Assistance Program
Receive pre-approval letter
Home Shopping & Purchase
Find qualified real estate agent
Verify properties meet CalHFA requirements
Confirm purchase price within county limits
Submit purchase offer and negotiate terms
Order home inspection
Review inspection report and negotiate repairs
Loan Processing & Closing
Submit signed purchase contract to lender
Complete loan application and provide additional docs
Review appraisal report
Clear all underwriting conditions
Schedule final walk-through
Review closing disclosure
Prepare cashier's check for closing costs
Attend closing and sign documents
Post-Closing
Set up homeowner's insurance
Transfer utilities to your name
Register for MyHome loan servicing account
Keep all loan documents for tax purposes
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.
Ready to Calculate Your California Mortgage?
Use our advanced mortgage calculator to estimate your monthly payments with current California interest rates and down payment assistance.
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.
Need help with your mortgage calculations?
Our mortgage calculator includes California-specific features to help you plan your home purchase with state assistance programs.