Down payment assistance (DPA) programs in California

✅ What the programs do

Offer financial help (often in the form of second-loans or grants) to cover part of a home purchase down payment and/or closing costs. FHA+3Golden State Finance Authority+3Bankrate+3
Many are aimed at first-time homebuyers (or “first-time” by definition, even if you’ve owned a home long ago) and moderate-income households. CalHFA+1
Some assistance is deferred (i.e., you don’t make payments until you sell or refinance) or forgiven after a certain period. California Mortgage Broker+1
Some programs are shared-appreciation: you don’t pay interest up front, but if your home value rises you repay a portion of the increase. UC Davis Human Resources+1

Here are some of the major ones you’ll run into:

This program offers a deferred-payment junior loan (second mortgage) of up to the lesser of 3.5% of the purchase price/appraised value (for FHA) or 3% for conventional. CalHFA+1
Eligibility: first-time homebuyer; property must be a primary residence; must complete homebuyer education; must stay under income limits. CalHFA
Purpose: help with down payment and/or closing costs. CalHFA+1

Allows up to 20% of the purchase price toward down payment/closing costs for eligible first-time homebuyers (also first-generation) via a no-interest loan, repaid when you sell or refinance, plus a share of appreciation. Quicken Loans+2UC Davis Human Resources+2
There are income and other eligibility limits. CalHFA+1

Offers assistance up to about 5% of the first mortgage loan amount, e.g., a second mortgage, amortizing, at the same interest as the first mortgage loan. Golden State Finance Authority+1
Some variants allow a gift component for select occupations (teachers, first responders, etc.). Golden State Finance Authority

Many local governments (cities, counties) also offer down payment/closing cost assistance programs. Example: in Riverside County the assistance may go up to 20% of purchase price for first-time buyers. RivCo HWS
Example: in the City of Simi Valley a program offers up to 20% of purchase price for qualifying households up to 150% of Area Median Income. Simi Valley

First-time buyer requirement: Often you must not have owned a home in the previous 3 years (definition varies).
Income limits / area median income (AMI): Many programs cap your income relative to AMI.
Primary residence requirement: The home must be your principal residence, not an investment or second home.
Credit / debt-to-income (DTI) thresholds: Programs often require minimum credit scores and DTI ratios. Simi Valley
Repayment / forgiven terms: Some loans are deferred and forgiven over time; others must be repaid when you sell or refinance; some include a share of appreciation.
Compliance with loan & education requirements: You’ll usually have to use a participating lender and complete home-buyer counseling/education. CalHFA+1
Availability / funding: Many programs are limited by funds, and may operate on a “first-come, first-served” basis.

Down payment is a major barrier to homeownership, especially in high-cost states like California. These programs help reduce that barrier.
Because home prices in many parts of California are very high, even a “small” percentage assistance (3-5%) can mean tens of thousands of dollars.
Using assistance wisely (and understanding the terms) can accelerate your ability to buy a home that you might not otherwise afford soon.
But you must be aware of the strings (such as resale restrictions, shared appreciation, or repayment triggers) so you’re not surprised later.

Make sure you clearly understand when repayment is required (selling the home, refinancing, or other trigger). Shared appreciation means you may pay more if your home’s value goes up.
Some programs may limit the price of home you can buy or restrict the geographic area or type of property.
Assistance is often tied to using specific lenders or loan products (so shop accordingly).
Funding may run out, so timing matters.
The assistance does not always mean you’ll have an easy mortgage — you’ll still need to meet income/credit/DTI criteria for the primary loan.