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Buyer Education

Down Payment Assistance in California — Full Guide (2025)

By Mike Basti, DRE #02232009 · Portfolio Home Realty

Quick Answer

California offers several down payment assistance programs for buyers who qualify — most notably CalHFA MyHome and Dream for All. These can be combined with Portfolio Home Realty's 1% cash back rebate for maximum financial benefit. On a $900,000 purchase, a qualified buyer could receive $31,500 in DPA plus $9,000 cash back at closing.

Key Takeaways

  • CalHFA programs are available to first-time buyers at moderate income levels
  • Dream for All provides up to 20% down — but has limited funding and often sells out quickly
  • PHR's 1% rebate can be combined with DPA programs
  • Pre-qualification with a CalHFA-approved lender is required before applying
  • Some programs require completion of a homebuyer education course

CalHFA MyHome Assistance Program

CalHFA MyHome provides a deferred-payment junior loan of up to 3.5% of the purchase price or appraised value for down payment and/or closing costs. Key terms:

  • First-time buyer required (has not owned in 3+ years)
  • Must use a CalHFA-approved lender
  • Homebuyer education course required
  • Repaid when you sell, refinance, or pay off the first mortgage
  • No monthly payment — deferred until the above trigger

CalHFA Dream for All

The most powerful California DPA program when it is funded. Dream for All provides up to 20% of the purchase price as a down payment loan in exchange for a proportional share of future appreciation. Example:

  • Buy a $900,000 home with 20% DPA ($180,000 loan)
  • When you sell for $1.2M, you repay $180,000 plus 20% of the $300,000 appreciation ($60,000) = $240,000 total
  • You keep 80% of the appreciation — still a strong outcome for most buyers

Important: Dream for All typically depletes its funding within days of opening. Sign up for CalHFA notifications to be ready when it reopens.

LA County and Orange County Programs

Both counties administer their own DPA programs. LA County's Housing and Community Investment Department and OC's Housing Finance Authority offer programs with varying terms. These are often less publicized but can be stacked with CalHFA programs for maximum benefit.

How to Combine DPA with the PHR Rebate

Portfolio Home Realty's 1% rebate flows through escrow as a buyer credit. It does not reduce your loan amount or conflict with DPA programs. A typical optimized transaction for a first-time buyer at $900,000:

  • CalHFA MyHome: $31,500 toward down payment
  • PHR 1% rebate: $9,000 applied to closing costs
  • Remaining buyer cash needed: Down payment minus DPA, plus any remaining closing costs

Get pre-qualified with a CalHFA-approved lender first. Our partner iLoanCA can walk you through all available programs for your specific situation.

Frequently Asked Questions

What down payment assistance programs exist in California?+

Key programs: CalHFA MyHome Assistance (deferred loan up to 3.5% of purchase price), CalHFA Dream for All (shared appreciation loan up to 20% down), and various county-level programs in LA County and Orange County. Eligibility varies by income, purchase price, and whether you are a first-time buyer.

Can I combine down payment assistance with a cash back rebate?+

Yes. Portfolio Home Realty's 1% cash back rebate is compatible with CalHFA and most down payment assistance programs. The rebate processes through escrow as a buyer credit — it does not affect your DPA eligibility. You get both the DPA and the 1% back at closing.

What is the income limit for CalHFA programs in Los Angeles?+

Income limits vary by program and county. For 2025, CalHFA income limits in high-cost counties like LA and Orange County are significantly higher than state average — many middle-income buyers qualify. Check the CalHFA website or ask your lender for current limits specific to your household size and target county.

The bottom line

California down payment assistance programs for first-time and repeat buyers — CalHFA, Dream for All, county programs, and how to combine them with a 1% cash back rebate. Portfolio Home Realty gives Southern California buyers full-service representation and returns 1% of the purchase price at closing. Call (949) 379-5320 or get a free estimate online. DRE #02232009.