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Down Payment Assistance Programs: How to Get Help With Your Biggest Barrier

The down payment is the #1 obstacle for most first-time buyers. These programs can help cover part or all of it.

Rick Villa

Rick Villa

May 13, 2024 · 5 Point Capital

For most first-time buyers, saving enough for a down payment takes years — sometimes decades in high-cost areas. But there’s money available to help, and most people never know to ask.

Types of Down Payment Assistance

Grants: Free money that doesn’t need to be repaid. Usually limited in availability and income-restricted.

Forgivable loans: Loans that are forgiven after you stay in the home a certain number of years (usually 3–5). Leave early and you repay a prorated amount.

Deferred loans: No payments until you sell, refinance, or pay off the first mortgage. The assistance is repaid then, but without interest.

Matched savings programs: Employer or government programs that match what you save (often 3:1 or 4:1) up to a cap.

Major DPA Programs in California

CalHFA MyHome: Up to 3.5% of purchase price, deferred. Available statewide with income limits.

Golden State Finance Authority (GSFA) Platinum: Up to 5.5% in down payment and closing cost assistance. No repayment required for first-time buyers.

Riverside County DPA: Offers forgivable loans for buyers in Riverside County.

City of Santa Ana: Provides grants for buyers purchasing in Santa Ana.

City of Anaheim: Operates a first-time buyer program with deferred loans.

Income Limits (California Averages)

Most programs are limited to buyers earning 80–120% of the Area Median Income (AMI). In Orange County, 80% AMI for a family of 4 is approximately $97,400.

The Catch

DPA programs add complexity to your loan. Not all lenders are approved for all programs, and the process takes longer than a standard purchase. We are familiar with these programs and can structure your loan to take advantage of them.

Have questions about your situation?

Rick offers free, no-obligation consultations. Get personalized advice for your specific loan or home.