Grants and Subsidies: How to Get Help Buying Your First Home in California

Let’s break down what help is available in 2025, who qualifies, and how you can apply.

What Does “First-Time Homebuyer” Mean?

You’re considered a first-time homebuyer if you haven’t owned a home in the last three years. Even if you owned a home in the past, you may still qualify if enough time has passed.

What Kind of Help Can You Get?

There are four main types of support programs:

• Grants – Free money you don’t need to pay back.

• Down Payment Assistance Loans – These help with your down payment and are paid back later or forgiven after some time.

• Subsidized Loans – Mortgages with better interest rates and easier terms.

• Forgivable Loans – These are loans that become a gift if you stay in the home for a few years.

Best Programs in California (2025)

1. CalHFA Programs (State Level)

CalHFA is California’s Housing Finance Agency. It offers some of the best programs for first-time buyers:

• MyHome Assistance Program

Gives up to 3.5% of the home price for your down payment or closing costs. You repay this loan later — no payments until you sell or refinance.

• Forgivable Equity Builder Loan

Gives you up to 10% of the price of the home. If you live there for five years, you don’t need to pay it back.

• CalPLUS FHA or CalPLUS Conventional Loans

Special mortgage loans with fixed interest and extra help for closing costs.

📝 Note: You must take a homebuyer education course (usually online, 6–8 hours).

2. Dream For All (Possibly Returning in 2025)

This program made headlines in 2023–2024. It offered up to 20% of the home price as help with no monthly payments — you only paid back later when selling the home, and shared part of the profit.

But funds ran out fast. If it returns in 2025, act quickly! Check the CalHFA website for updates: https://www.calhfa.ca.gov

3. Local City and County Programs

Many cities and counties in California offer their own help:

• San Francisco DALP – Loans up to $500,000 for down payments, forgiven after long-term living in the home.
• Los Angeles LIPA Program – Up to $90,000 for low-income families.
• Sacramento SHRA Program – Offers up to $30,000 for down payments and help with closing costs.

Each city has its own rules, so check local housing websites or offices.

Who Can Apply?

You don’t need to be low-income to qualify — many programs support middle-income buyers too. But here are some common rules:

• Income Limits – Your income must be under a set amount (based on where you live).
• Home Price Limits – The house must cost less than a maximum price (varies by area).
• You Must Live in the Home – These programs are not for rental properties.
• You Must Take a Homebuyer Course – It’s easy and helps you understand the process.

How Do You Apply?

• Check if You Qualify

Use tools on CalHFA’s or local websites to see if you’re eligible.

• Find an Approved Lender

These programs work only with special mortgage lenders approved by the state.

• Complete a Homebuyer Course

It’s required and takes just a few hours online.

• Gather Documents

You’ll need income info (like tax returns), bank statements, credit history, etc.

• Apply Through the Lender

The lender helps you apply and guides you through the process.

What Are the Challenges?

• Funds Run Out Fast – Some programs close in weeks after launching.
• Competition is High – Sellers might prefer buyers without extra paperwork.
• Rules Can Be Confusing – Each program is a little different.

Tips for Success

• Check Your Credit Score Early – You’ll likely need a score of 640 or higher.
• Start Paperwork Early – Having everything ready speeds up your process.
• Work with a Real Estate Agent Who Knows These Programs – They can help you find homes that qualify.

Buying a home in California isn’t easy — but it’s not impossible. Thousands of first-time buyers use state and city programs each year. These programs can make the difference between renting forever or finally owning your own home.