California First-Time Home Buyer Guide 2026
This California first-time home buyer guide covers CalHFA down payment assistance programs, income limits by county, the Dream For All shared appreciation loan, and step-by-step guidance for first-time buyers in California’s competitive housing market.
California First-Time Home Buyer Programs from CalHFA
The California Housing Finance Agency (CalHFA) is the primary source of first-time homebuyer assistance in California. CalHFA does not lend directly to buyers — instead, it works through a network of CalHFA-approved lenders who originate the first mortgage and layer CalHFA assistance on top.
| Program | Loan Type | Assistance | Min Credit Score | Best For |
|---|---|---|---|---|
| CalHFA FHA + MyHome | FHA first mortgage | Up to 3.5% DPA (deferred loan) | 660 | Lower down payment, below-620 credit not eligible for CalHFA |
| CalHFA Conventional + MyHome | Conventional first mortgage | Up to 3% DPA (deferred loan) | 660 | Avoids FHA MIP, slightly stronger credit profile |
| CalHFA Dream For All | Conventional first mortgage | Up to 20% shared appreciation loan | 660 | First-generation buyers with limited down payment funds |
| CalVet Home Loan | State-funded veterans loan | Competitive rate; no PMI | Varies | California veterans — alternative to VA loan |
CalHFA Dream For All Program
CalHFA Dream For All is a shared appreciation loan program designed specifically for first-generation homebuyers — buyers whose parents never owned a home in the United States. It provides up to 20% of the purchase price as a down payment loan with no monthly payments and no interest.
Instead of traditional interest, CalHFA receives the same percentage of appreciation that the program funded when you sell or refinance. For example, if CalHFA contributed 15% of your purchase price, CalHFA receives 15% of any appreciation at the time of sale or payoff.
| Feature | Detail |
|---|---|
| Assistance amount | Up to 20% of purchase price |
| Repayment | Due at sale, refinance, or 30-year term |
| Interest / payments | None — shared appreciation only |
| Eligibility | First-generation homebuyer (parents did not own in the U.S.) |
| Availability | Lottery-based; limited funding — check calhfa.ca.gov for open enrollment |
| Min credit score | 660 |
| Income limits | Vary by county — see CalHFA’s current limits |
Income and Purchase Price Limits
CalHFA income and purchase price limits vary significantly by county because they are tied to each county’s Area Median Income (AMI). The figures below are approximate — always verify current limits at calhfa.ca.gov before applying.
| County / Area | Approx. Income Limit (1–2 person HH) | Max Purchase Price (approx.) |
|---|---|---|
| Los Angeles County | ~$180,000 | ~$1,149,825 |
| Orange County | ~$188,000 | ~$1,149,825 |
| San Diego County | ~$173,000 | ~$1,006,250 |
| San Francisco / San Mateo | ~$211,000 | ~$1,209,750 |
| Santa Clara County | ~$211,000 | ~$1,209,750 |
| Sacramento / Placer | ~$152,000 | ~$763,600 |
| Riverside / San Bernardino | ~$138,000 | ~$644,000 |
| Fresno / Kern / Central Valley | ~$118,000 | ~$524,225 |
Purchase price limits are typically tied to the county’s FHA loan limit for CalHFA FHA programs, or the conforming loan limit for CalHFA conventional programs. Verify current limits at calhfa.ca.gov before making an offer.
CalHFA Eligibility Requirements
To use a CalHFA program, buyers must meet all of the following requirements:
- First-time homebuyer: Have not owned and occupied a primary residence in the past 3 years (except Dream For All, which requires first-generation status)
- Owner-occupancy: Must live in the home as a primary residence within 60 days of closing
- Homebuyer education: Complete an 8-hour homebuyer education course through a HUD-approved counselor (required for all CalHFA borrowers)
- Credit score: Minimum 660 for most CalHFA programs (higher than standard FHA and conventional requirements)
- Income limits: Household income must be at or below CalHFA’s limit for your county
- CalHFA-approved lender: Must use a lender on CalHFA’s approved lender list — not all California lenders are CalHFA-approved
Veterans exception: CalHFA waives the first-time homebuyer requirement for eligible veterans and active-duty military using an eligible loan program. If you have VA eligibility, check with a CalHFA-approved lender regardless of whether you’ve owned a home before.
Step-by-Step Buying Process for California First-Time Buyers
| Step | What to Do | Notes |
|---|---|---|
| 1 | Check your credit score | Get a free credit report and score. You need at least 660 for CalHFA programs. |
| 2 | Complete homebuyer education | Take the required 8-hour course through a HUD-approved agency. This is required for all CalHFA programs and must be done before loan closing. |
| 3 | Find a CalHFA-approved lender | Not all California mortgage lenders participate in CalHFA. Use CalHFA’s lender locator at calhfa.ca.gov to find a participating lender. |
| 4 | Get pre-approved | Your lender will review income, assets, credit, and determine which CalHFA programs you qualify for. |
| 5 | Check Dream For All availability | If you are a first-generation buyer, ask your lender whether Dream For All enrollment is open. Funding is released in lottery rounds. |
| 6 | Make an offer | In California’s competitive market, having a pre-approval letter from a CalHFA lender strengthens your offer. Some sellers may be unfamiliar with CalHFA — your agent should be prepared to explain it. |
| 7 | Open escrow | California uses escrow companies (not attorneys) to close real estate transactions. |
| 8 | Close and take title | Review the Closing Disclosure carefully. California has no attorney requirement at closing; your escrow officer handles the settlement. |
