California First-Time Homebuyer Programs: Find the Right Help for Your First Home

Buying your first home is an exciting milestone, but in California’s competitive housing market, it can also feel overwhelming. The good news? Many federal, state, and local programs exist to make that first step into homeownership more achievable.

While there are national programs that anyone can apply for, some of the most valuable opportunities for California buyers come from state-level initiatives. These programs often provide benefits such as down payment assistance, closing cost assistance, lower interest rates, and even forgivable loans if you remain in the home for a set period.

Popular First-Time Homebuyer Program in California: MyHome Assistance Program

One of the most recognized programs for first-time buyers in the state is the CalHFA MyHome Assistance Program. This program offers a deferred-payment junior loan to assist with down payment and/or closing costs. For CalHFA Government Loans (FHA), the assistance amount can be up to the lesser of 3.5% of the purchase price or appraised value. For CalHFA Conventional Loans, the amount can be up to the lesser of 3% of the purchase price or appraised value.

Program Eligibility

To qualify, you must be a first-time homebuyer, meaning you have not owned a home in the past three years. You are required to occupy the property as your primary residence, and non-occupant co-borrowers are not allowed. All CalHFA borrowers must complete homebuyer education and counseling through an eligible provider and obtain a certificate of completion. Additionally, your income must fall within CalHFA’s program limits for your area.

Property Requirements

Eligible properties include single-family, one-unit residences, approved condominiums or PUDs, and certain guest houses, granny units, and in-law quarters. Manufactured homes are also permitted. Condominiums must meet the first mortgage guidelines. In cases of conflicting requirements, the more restrictive guideline will apply.

Interest Rate Information

Interest rates for the MyHome Assistance Program vary based on financial circumstances, lender fees, and other factors, and they can change daily. CalHFA does not lend money directly to consumers; instead, it works with approved lenders who handle qualification and funding. Because lender fees and rates can differ, it’s important to request an accurate rate quote from a CalHFA-approved loan officer.

How to Apply

Since CalHFA is not a direct lender, you must apply through private loan officers approved and trained by the agency. These professionals can explain program details, help you determine eligibility, and guide you through the homebuying process. To get started, visit the Find a Loan Officer section on the CalHFA website to locate one in your area.

When you first reach out to a loan officer, it helps to have documents like pay stubs, bank statements, employment history, and previous tax returns ready. This will make the process smoother and allow your loan officer to give you accurate guidance.

Tips for First-Time Homebuyer

• Check With Your Bank or Credit Union: Financial institutions often offer special first-time buyer loans for their members.

• Work With a Local Realtor: An experienced agent will know about current incentives and can connect you to trusted lenders.

• Stay Informed About Your Local Market: Keep track of trends in the area where you plan to buy, such as average home prices, days on market, and competition levels. If you’re looking in regions like the Tri-Valley, staying current on these metrics will help you act quickly when the right opportunity appears.

• Search the HUD Website: The U.S. Department of Housing and Urban Development lists state and local resources.

Final Thoughts

If you’re ready to buy your first home, understanding and taking advantage of local programs can save you thousands of dollars and reduce stress throughout the process. From state-level initiatives like the CalHFA MyHome Assistance Program to local city programs, there are multiple paths to homeownership in California.

At Elation Real Estate, we guide first-time buyers through these options every day. Our qualified team will help you find the right program and support you through every step until you’re in your new home with confidence.

Ready to explore your options? Contact us today.