Down payment information in California comes from three separate sources: county and city programs, nonprofit organizations, and some lenders' own programs

California has no single statewide down payment program. Instead, the state funds county-level initiatives, cities run their own schemes, and nonprofits fill gaps with their own money. Which programs you can use depends on where you live, your income, the price of the home you want, and whether you are a first-time buyer. Some programs stack — you can use more than one at the same time. Others are exclusive.

The fastest way to find what exists where you live is to contact your county assessor's office or your city's housing department directly. They keep lists of active programs and know which ones are currently taking new people. Many programs run out of money partway through the year and reopen later, so a program that was closed in March might be open in September.

Key Takeaways

  • California county and city programs usually require you to be a first-time homebuyer, though some define that as not owning a home in the past three years rather than never.
  • Income limits vary by program and by family size, but most cap you at 80 to 120 percent of your area's median income — higher in expensive counties, lower in cheaper ones.
  • Some programs give you a grant (money you do not repay), others give you a loan at zero or low interest, and some do both.
  • Your county assessor or city housing department can tell you in one phone call which programs are open right now and whether you meet the basic requirements.

County-level programs and who they serve

Most California counties run down payment information through their housing authority or community development department. These programs almost always require you to be a first-time homebuyer. The definition varies: some mean you have never owned a home, others mean you have not owned one in the past three years, and a few allow people who are divorced or widowed to count as first-time buyers even if they owned before.

Income limits are set by county and adjust each year. A family of four in San Francisco County might have a limit around $150,000, while the same family in a rural county might have a limit around $80,000. The programs use area median income (AMI) as the benchmark — usually 80 to 120 percent of AMI for that county. You can find your county's current AMI on the HUD website under "Income Limits".

The amount you can borrow or receive also varies. Some counties cap information at $50,000, others at $100,000 or more. A few tie the amount to a percentage of the purchase price — say, 10 or 15 percent. Ask your county housing authority what the current maximum is; it changes when funding changes.

City programs and local variations

Larger California cities — San Francisco, Los Angeles, San Diego, Oakland, Sacramento — run their own down payment programs separate from the county. These often have stricter income limits or more specific requirements than the county version. San Francisco's program, for instance, requires you to work in San Francisco or have lived there for a set period. Los Angeles programs sometimes prioritize teachers, healthcare workers, or other essential workers.

City programs often move faster than county ones because they have smaller applicant pools. If your city has a program and you meet its requirements, explore there first can get you an answer in four to eight weeks instead of three to four months. Your city's housing department or planning department website lists active programs and links to applications.

Nonprofit and lender-based information

Organizations like NeighborWorks, the California Housing Finance Agency (CalHFA), and local nonprofits offer down payment help when county or city funds are exhausted or when you do not meet their rules. These programs often have higher income limits or looser first-time buyer definitions. Some accept people with lower credit scores or shorter employment histories than traditional lenders require.

CalHFA, a state agency, runs several programs including the CalHFA Downpayment information Program, which offers second mortgages (loans you repay) at favorable rates. You must be a first-time buyer and meet income limits that vary by county. CalHFA programs are available statewide and do not run out of money the way county programs do, though approval takes longer — typically six to eight weeks.

Some mortgage lenders offer their own down payment information as part of a loan package. These are usually grants or forgivable loans tied to using that lender. Ask any lender you are considering whether they have a down payment program; the terms and income limits are set by the lender, not by the state.

Income and asset limits that disqualify you

Most programs set an income ceiling based on area median income. In expensive coastal counties, that ceiling is high in absolute dollars but still excludes high earners. In inland counties, the dollar amount is lower. A single person earning $90,000 might may have access to in San Francisco County but not in Kern County.

Some programs also cap your assets — savings, investments, retirement accounts. A program might say you cannot have more than $50,000 in liquid assets outside of retirement accounts. Others do not check assets at all. Ask the program directly what they count and what the limit is; the rules are specific to each program.

Debt-to-income ratio matters too. Most programs want your total monthly debt payments (car loans, student loans, credit cards, the new mortgage) to be no more than 43 to 50 percent of your gross monthly income. If you have high student loan debt or multiple car payments, this can disqualify you even if your income is within range.

First-time buyer definitions that vary by program

Not all programs use the same definition of first-time buyer. Some require you to have never owned a home. Others allow you to may have access to if you have not owned in the past three years. A few programs count single parents, divorced people, or widows as first-time buyers even if they owned a home during a marriage.

If you owned a home and sold it at a loss, or if you lost a home to foreclosure, some programs will still count you as a first-time buyer for their purposes. Others will not. The distinction matters because it determines which programs are open to you. Always ask the program how they define first-time buyer before you assume you are ineligible.

How much information you receive and what form it takes

Down payment information comes in three forms: grants (money you do not repay), loans (money you repay with interest, usually zero or low), and forgivable loans (loans that disappear if you stay in the home for a set period, usually five to ten years).

County programs often combine them. You might receive a $20,000 grant plus a $30,000 forgivable loan, for example. The grant covers part of your down payment outright; the forgivable loan covers the rest and disappears if you own the home for ten years. If you sell or refinance before ten years, you owe back the forgivable portion.

The total amount varies widely. Some programs cap information at $25,000, others at $100,000 or more. A few tie it to the purchase price — 10 percent of the sale price, for instance. Ask what the maximum is for the program you are considering and whether it covers your down payment gap or only part of it.

How to find programs in your area and check if you meet the requirements

Start by calling your county assessor's office or your county housing authority. They maintain lists of all active programs in your county and can tell you in one call which ones are currently open and whether you meet the basic income and first-time buyer requirements. This takes fifteen minutes and saves you hours of searching online.

Next, contact your city's housing department or planning department. Ask whether your city runs its own down payment program. If it does, ask what the income limits are, what the maximum information is, and how long approval takes. Many cities post applications online; some require you to attend an information session first.

If county and city programs are closed or you do not meet their requirements, ask the county housing authority which nonprofits they recommend. They know which organizations have money available and which specialize in your situation — first-time buyers with lower credit scores, self-employed people, recent immigrants, and so on.

Frequently Asked Questions

Do I have to use the down payment information to buy in the county where I live?

No. Most county programs let you buy anywhere in California as long as you meet the program's other requirements. Some city programs require you to buy within city limits. Always ask the program whether there are geographic restrictions before you explore.

Can I use down payment information from more than one program at the same time?

Sometimes. Many county programs allow you to stack a county grant with a nonprofit loan or a CalHFA loan. Some programs explicitly forbid it. Ask each program whether you can combine their information with another program's before you explore to both.

What happens to the forgivable loan if I sell the house before it is forgiven?

You owe back the remaining balance. If you received a $30,000 forgivable loan over ten years and you sell after five years, you typically owe back $15,000 (half). The exact amount depends on the program's terms. Read the loan documents carefully before you sign.

Do I need to have a certain credit score to may have access to?

Most county programs require a credit score of 620 or higher, though some go as low as 580. Nonprofit programs often accept lower scores. Ask the program what their minimum is; if your score is below their threshold, they may recommend waiting a few months while you pay down debt and improve your score.

Can I use down payment information if I am self-employed?

Yes, but you will need two years of tax returns and possibly a profit-and-loss statement. Some programs are stricter about self-employed income than others. Ask whether the program has experience with self-employed applicants and what documentation they require.