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The Top 25 Down Payment Assistance Programs in CA (2025 – 2026)

Let’s face it. Buying a home is not easy, especially for first-time home buyers. Interest rates are high. Prices are high. Inventory is low. And competition is fierce.  

 

The good news is, there are still ways to purchase your first or even next home and still make it affordable.

 

And that is through the help of down payment assistance programs.

 

Hi, my name is Dominique, I’m a realtor in Southern California, and I’ve seen firsthand how down payment assistance programs can be the difference people becoming homeowners or staying renters.

 

Which is why I’m excited to share this article: THE most comprehensive list on the internet of down payment assistance programs.

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I’ll start by briefly talking about how down payment assistance programs usually work before diving into the different programs that are available out there, with a particular focus on potential buyers in the Southern California counties.

 

It’s a lot of information, so, if at any point you get overwhelmed, and would simply like someone to talk through ALL of the different options out there, feel free to call or text me at 909-243-3022.

 

How Do Down Payment Assistance Programs Work

 

Down payment assistance programs work to act provide monetary “help” with the primary mortgage on a property.

 

In other words, most programs are designed to help potential home buyers pay for the things that can’t or won’t be rolled into their loan, such as the down payment, the closing costs, interest rate buyers, or a combination of any of the above.

 

They are commonly structured in three key ways:

 

Grants

 

Grants are the best choice for down payment assistance as they do not have to be paid back. They are not recorded as a lien on the property.

 

Think of them like gifts, except instead of coming from a relative, they come from an organization or a non-profit.

 

Usually, after certain conditions are met, like living in the home for a certain period of time or making on-time mortgage payments for a set time frame, the money provided is completely forgiven.

 

Because these are forgivable, though, certain grants may be taxable, so it’s always wise to consult with your own legal and tax professionals before officially accepting grant assistance.

 

Forgivable Second Loans

 

The next popular structure for down payment assistance is a forgivable second mortgage that is recorded against the property when you close escrow.

 

Unlike a grant, down payment assistance in the form of a forgivable second loan will show up on title, after the first mortgage.

 

However, with this type of assistance, similar to a grant, after a certain time period or set of conditions are met, the loan can be completely forgiven and will be officially removed from title.

 

Depending on the structure, forgivable second loans, in my opinion, can be a better option than grants, because they may not be considered taxable, but do not have to be paid back.

 

Deferred Second Loans

 

Lastly, down payment assistance programs can be organized as deferred second loans.

 

With these loans, you pay low to no interest rates, over the full life of your first mortgage.

 

These loans are recorded against the property, and usually don’t have to be paid back until a triggering event, like selling the property or refinancing the first loan.

 

Depending on the loan, after 30 years, you may owe nothing on the down payment assistance, but more often than not you’ll owe the full loan amount and interest, which is called a balloon payment.

 

Some down payment assistance programs that provide larger dollar amounts, like the CA Dream for All program, may even take it a step further and require you to share a percentage of the equity you earned as well.

 

In other words, at the end of 30 years, they’ll want the original amount of the 2nd loan, the interest due on the second loan, and a cut of any equity that you earned over the life of the loan to boot.

 

Before you read this and think why would anyone want to do that, just remember, programs with the largest assistance are usually structured this way.

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A Quick Disclaimer

 

Now, before getting started, a few key things are important to note.

 

By reading this guide, you understand that it is provided for informational purposes only.

 

All information is subject to change. Programs, rates, terms and conditions are subject to change without notice.

 

Any questions in regards to qualifying should be directed to the points of contact listed. If you would, a friendly introduction with anyone on the list, though, feel free to reach out to me. 

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Some programs offer assistance that may be due upon sale, refinance, transfer, or assumed of the primary mortgage during the term of the loan. 

 

None of the information provided is a commitment to lend.

 

While my team and I will update the list over time, we do not update it in real time. 

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What is a First-Time Homebuyer?

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For the sake of these down payment assistance programs, a first-time home buyer are buyers that have never had any ownership interest in real estate or any real property at any time in the past three years.

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This is the most common definition. 

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However, some programs, may have even stricter standards for first-time home buyer requirements, where the buyer can't have owned ANY real estate EVER.

 

The programs where this applies are marked. 

 

With that, let’s get into it!

1. Dream for All Program

CalHFA

 

Status:

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  • The program will begin accepting voucher registrations in early 2026!  

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About the Program:

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The Dream for All program is a standout down payment assistance program that offers up to 20% in down payment assistance (or $150,000) to low- to moderate-income, first-generation homebuyers all across California.

 

The program in its first year was so popular, and funds were extinguished so quickly, that CalHFA has considerably changed the way the program works since it first came out.

 

Now the program is limited to first-generation homebuyers and is now a lottery system as opposed to a first-come, first-serve model.

 

Regardless, the program is the start of down payment assistance programs out there, as there is no interest and no monthly payments on the assistance.

 

The borrower does have to repay the original loan amount plus a percentage of the home's appreciation when the home is sold or otherwise transferred, however, I make it a point to work with clients on ways they can create even more equity in their home to offset this trade off in the future.  

 

For the most up-to-date updates on the Dream for All program, subscribe to our newsletter.

 

Applicable Areas:

 

  • All of California


Program Highlights:

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  • Education Requirement: 8 Hours Homebuyer Education, Shared Appreciation Education

  • Up to 20% Down payment

  • Minimum Credit Score: 640 – 660 (varies)

  • Maximum Benefit: Up to 20% of purchase price, up to $150,000

  • First-Time Homebuyer: Yes

  • First-Generation Homebuyer: Yes (min. one borrower must be)

  • Owner Occupant Requirement: Yes

  • Primary Residence Requirement: Yes

  • Maximum Purchase Price: Not stated

  • Property Types: SFR, Condo, Townhome in eligible locations in LA County

  • Income Limits:

    • OC - $216,000

    • LA - $168,000

    • Riverside - $164,000

    • San Bernardino - $164,000

 

Income Limits:

 

 

Important Notes:

 

 

Contact:

 

 

 

Source:  

 

2. Low Income Purchase Assistance Program (LIPA)

City of Los Angeles

 

About the Program:

 

A first-time homebuyer downpayment program that offers up to $140,000 in assistance for Low Income Families who purchase a home within Los Angeles.

 

Applicable Areas:

 

  • City of Los Angeles incorporated areas only

 

Program Highlights:

 

  • Maximum Benefit: Up to $140,000

  • Maximum Purchase Price: $930,622 for single-family residences and condominiums

  • Program Type: Silent 2nd Loan

  • Owner Occupant Requirement: Yes

  • Primary Residence Requirement: Yes

  • First-Time Homebuyer Requirement: Yes

  • First-Generation Homebuyer Requirement: No

  • Minimum Buyer Contribution: 1% purchase price, potentially more depending on the borrower

  • Forgivable: No  

  • Repayment: Yes, upon sale, title transfer, 1st mortgage repayment, or in 30 years.  

  • Equity Share: Yes, upon sale or refinance

  • Amortizing: Yes

  • Deferred Payments: Yes, 0% deferred interest, no monthly payments

 

Income Limits:

 

  • Per Household Size (2025)

  • 1 person: $84,850 or less

  • 2 person: $96,950 or less

  • 3 person: $109,050 or less         

  • 4 person: $121,150 or less         

  • 5 person: $130,850 or less         

  • 6 person: $140,550 or less         

  • 7 person: $150,250 or less

  • 8 person: $159,950 or less

 

Important Notes:

 

  • All borrowers are required to have at least two (2) credit scores. The lower of the two scores will be used to determine if the minimum credit score requirement of 660 is met.

  • Loan reservation requests from lenders will be accepted starting at 9:00 a.m. (PST): 

    • Wednesday, November 12, 2025 = 18 LIPA Loan Reservations

    • Wednesday, March 4, 2026 = 18 LIPA Loan Reservations

  • Funds can also be used for closing costs (up to 5% of purchase price)

  • Per 2024, funds could be used to pay down interest rates (this is what my buyer did when I was successfully able to help her secure MIPA funding for a condo in Woodland Hills)

  • Find the full Iist of eligible lenders here: https://housing.lacity.gov/wp-content/uploads/2023/04/Eng-FTHB-Lender-List.pdf

  • Loan due on sale of the home, change of occupancy, title transfer, first mortgage repayment, or in 30 years. 

  • Refinancing of 1st mortgage may be allowed in certain circumstances.

  • Can potentially layer with Mortgage Credit Certificate Program (MCC)

  • Shared appreciation with city on sale or refinance

  • Loan reservation requests must be complete with all required attachments and emailed to: lahd.homeownershipunit@lacity.org [by the participating lender].  The loan reservations will be issued on a first-come, first-served basis until the last eligible loan reservation is accepted. There will be no waitlist. 

  • Loan reservation requests will be accepted in the order they are received by the lahd.homeownershipunit@lacity.org account. Loan reservation requests submitted before 9:00 a.m. or on earlier dates will not be accepted. LAHD will use the timestamp from the lahd.homeownershipunit@lacity.org email account, not the lender’s timestamp.

  • Additionally, every loan reservation email submission request may only include one (1) unique purchase transaction. A loan reservation submission email request cannot include multiple purchase transactions.  

  • As previously announced, the LIPA and MIPA loan reservation period has been changed from 45 calendar days to 30 calendar days. This means that participating lenders now have 30 calendar days from the date a loan reservation is issued to submit a complete LIPA or MIPA loan application with all attachments to LAHD. Should the 30-day expiration date fall on a non-City business day, the loan application with all attachments will be due to LAHD on the preceding business day.  There are no extensions.

  • LAHD reserves the right to modify the loan reservation schedule at its discretion, as necessary.

 

Contact:

 

 

Source:

 

 

3. Moderate Income Purchase Assistance Program (MIPA)

City of Los Angeles

 

About the Program:

 

A first-time homebuyer downpayment program that offers up to $90,000 - $115,000 in assistance for Moderate Income Families who purchase a home within Los Angeles.

 

Applicable Areas:

 

  • City of Los Angeles incorporated areas only

 

Program Highlights:

 

  • Maximum Benefit: Up to $90,000 - $115,000

  • Maximum Purchase Price: $930,622 for single-family residences and condominiums

  • Program Type: Silent 2nd Loan for moderate income families

  • Owner Occupant Requirement: Yes

  • Primary Residence Requirement: Yes

  • First-Time Homebuyer Requirement: Yes

  • First-Generation Homebuyer Requirement: No

  • Minimum Buyer Contribution: 1% purchase price, potentially more depending on the borrower

  • Forgivable: No  

  • Repayment: Yes, upon sale, title transfer, 1st mortgage repayment, or in 30 years.  

  • Equity Share: Yes, upon sale or refinance

  • Amortizing: Yes

  • Deferred Payments: Yes, 0% deferred interest, no monthly payments

 

Income Limits:

 

  • Per Household Size (2025)

  • 1 person: $84,851 – $121,400    

  • 2 person: $96,951 – $138,700    

  • 3 person: $109,051 – $156,050  

  • 4 person: $121,151 – $173,350  

  • 5 person: $130,851 – $187,250  

  • 6 person: $140,551 – $201,100  

  • 7 person: $150,251 – $215,000  

  • 8 person: $159,951 – $228,850

 

 

Important Notes:

 

  • All borrowers are required to have at least two (2) credit scores. The lower of the two scores will be used to determine if the minimum credit score requirement of 660 is met.

  • Reservations Accepted in January 2026, 1st Come 1st Serve

  • Loan reservation requests from lenders will be accepted starting at 9:00 a.m. (Pacific Time).: 

    • Wednesday, January 14, 2026 = 18 MIPA Loan Reservations

    • Wednesday, June 10, 2026 = 18 MIPA Loan Reservations

  • Funds can also be used for closing costs (up to 5% of purchase price)

  • Per 2024, funds could be used to pay down interest rates (this is what my buyer did when I was successfully able to help her secure MIPA funding for a condo in Woodland Hills)

  • Find the full Iist of eligible lenders here: https://housing.lacity.gov/wp-content/uploads/2023/04/Eng-FTHB-Lender-List.pdf

  • Loan due on sale of the home, change of occupancy, title transfer, first mortgage repayment, or in 30 years. 

  • Refinancing of 1st mortgage may be allowed in certain circumstances.

  • Can potentially layer with Mortgage Credit Certificate Program (MCC)

  • Shared appreciation with city on sale or refinance

  • Loan reservation requests must be complete with all required attachments and emailed to: lahd.homeownershipunit@lacity.org [by the participating lender].  The loan reservations will be issued on a first-come, first-served basis until the last eligible loan reservation is accepted. There will be no waitlist. 

  • Loan reservation requests will be accepted in the order they are received by the lahd.homeownershipunit@lacity.org account. Loan reservation requests submitted before 9:00 a.m. or on earlier dates will not be accepted. LAHD will use the timestamp from the lahd.homeownershipunit@lacity.org email account, not the lender’s timestamp.

  • Additionally, every loan reservation email submission request may only include one (1) unique purchase transaction. A loan reservation submission email request cannot include multiple purchase transactions.  

  • As previously announced, the LIPA and MIPA loan reservation period has been changed from 45 calendar days to 30 calendar days. This means that participating lenders now have 30 calendar days from the date a loan reservation is issued to submit a complete LIPA or MIPA loan application with all attachments to LAHD. Should the 30-day expiration date fall on a non-City business day, the loan application with all attachments will be due to LAHD on the preceding business day.  There are no extensions.

  • LAHD reserves the right to modify the loan reservation schedule at its discretion, as necessary.

 

Contact:

 

 

Source:

 

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Dominique Higgins fully supports the principles of the fair housing act and the equal opportunity act.  All material presented herein is intended for information purposes only. While this information is believed to be correct, it is represented subject to errors, omissions, changes or withdrawal without notice. Information is obtained from various sources and will not be verified by Company. There is no guarantee of the accuracy of all data including measurements, conditions, and features of property. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.​​​​​​​ ​​​​​​​ While some of the listings on this site may not be our exclusive listings, we have ongoing relationships with all of the listing agents.All information should be verified by your own legal, tax, attorney, architectural and/or zoning professionals. © 2023 by Demi Watson. Proudly created with Wix.com

Dominique Higgins, Broker

DRE#01927254 

contact@dominiquehiggins.com

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