Down Payment Assistance Programs

Buying a home in the Bay Area can feel like a daunting task, especially if you are struggling to save enough money for a down payment. A down payment is the amount of money that you pay upfront when you buy a home with a mortgage loan, and it usually ranges from 3% to 20% of the home price, depending on the type of loan and the lender. However, you may not have to pay the full amount out of your own pocket, as there are many programs and resources that can help you with down payment assistance.

What is down payment assistance?

Down payment assistance (DPA) is any form of financial aid that helps you cover some (or all) of the down payment and/or closing costs required to purchase a home. DPA can come in different forms, such as grants, loans, tax credits, forgivable loans, deferred loans, shared equity, or shared appreciation. DPA can also have different eligibility criteria, such as income limits, credit score requirements, homebuyer education, occupancy rules and repayment terms.

Tips & Facts

Down payment assistance can come in different forms, such as grants, loans, tax credits, forgivable loans, deferred loans, shared equity, or shared appreciation.

Down payment assistance programs in California

There are many sources of DPA programs that you can explore, such as federal, state, local, and nonprofit programs. Here are some of the most common and popular DPA options available in the California Bay Area:
 
California Housing Finance Agency (CalHFA)
CalHFA is a state agency that offers various loan programs and DPA options through a network of approved lenders for low- and moderate-income homebuyers in California. Some of the DPA options include:

• MyHome Assistance Program: This program provides a deferred-payment junior loan of up to 3.5% of the purchase price or appraised value (whichever is lower) to assist with down payment and/or closing costs. The loan has a simple interest rate of 2.5% and is due when the home is sold, refinanced, or paid off. The program is available for first-time homebuyers who meet the income and property requirements and use a CalHFA first mortgage loan.
• California Dream for All Shared Appreciation Loan: This program provides a down payment loan of up to 20% of the purchase price to assist with down payment and/or closing costs. The loan has a zero-interest rate and is due when the home is sold, refinanced, or paid off. The borrower also agrees to share a portion of the appreciation in the value of the home with the state, which ranges from 15% to 20%, depending on the borrower’s income and the loan amount. The program is available for first-time homebuyers who meet the income and property requirements and use the Dream for All Conventional first mortgage loan.

 
Additional local programs
There are also many local programs that offer DPA to homebuyers in specific counties, cities, or neighborhoods in the Bay Area. Some of these programs include:
 
Workforce Initiative Subsidy for Homeownership (WISH): The WISH Program is available from the Federal Home Loan Bank of San Francisco (FHLB SF) through a network of Participating Lenders and offers eligible low- to moderate-income households 4-to-1 matching grants of up to $29,172. WISH funds can be applied to downpayment and closing costs for the purchase of a home. The grant has a zero-interest rate and no monthly payments. If certain eligibility requirements are met, the grant can be eligible for full forgiveness after five years.
 
Alameda County Down Payment Assistance Program: This program provides a deferred-payment loan of up to 15% of the purchase price or $75,000 (whichever is lower) to assist with down payment and/or closing costs. The loan has a zero-interest rate and is due when the home is sold, refinanced, transferred, or paid off. The program is available for low-income homebuyers who meet the income and property requirements and use a conventional, FHA, VA, or USDA loan.
 
San Francisco Downpayment Assistance Loan Program (DALP): This program provides a deferred-payment loan of up to 15% of the purchase price or $375,000 (whichever is lower) to assist with down payment and/or closing costs. The loan has a 3% simple interest rate and is due in 30 years or when the home is sold, refinanced, transferred, or paid off. The program is available for moderate-income homebuyers who meet the income and property requirements and use a conventional, FHA, VA, or USDA loan.
 
Santa Clara County Homebuyer Empowerment Loan Program (HELP): This program provides a deferred-payment loan of up to 10% of the purchase price or $100,000 (whichever is lower) to assist with down payment and/or closing costs. The loan has a 3% simple interest rate and is due in 30 years or when the home is sold, refinanced, transferred, or paid off. The program is available for low- and moderate-income homebuyers who meet the income and property requirements and use a conventional, FHA, VA, or USDA loan.
 
These are just some of the DPA options available to eligible homebuyers. There may be more programs and resources that suit your specific needs and preferences. To learn more about DPA and how to apply for it, you can contact a local housing counselor, a real estate agent, or one of our Home Loan Consultants. With assistance from one of the available programs, you may be able to achieve your dream of homeownership sooner than you think.