Golden State Finance Authority (GSFA) Programs (e.g., GSFA Platinum® Program,
Golden Opportunities Program)
What it is: Down payment and/or closing cost assistance programs.
Details: Not limited to first-time homebuyers. Offers up to 5.5% in financial
assistance based on the first mortgage loan amount. Can be used for various
property types (1-4 units, condos, townhomes, manufactured homes).
Compatible with FHA, VA, USDA, and Conventional loans. Offers different
structures (e.g., 15-year fully amortizing second mortgage loan, deferred second
mortgage with 0% interest).
Eligibility: Designed for low-to-moderate income borrowers with flexible income
limits (county-dependent). FICO scores as low as 640 may qualify.
California Housing Finance Agency (CalHFA) Programs
What it is: Offers various first mortgage and down payment assistance
programs, including:
MyHome Assistance Program: Provides deferred-payment junior loans
for down payment and/or closing costs.
CalHFA Dream For All Shared Appreciation Loan: A shared
appreciation loan that provides down payment assistance to first-time
homebuyers. The loan is repaid upon sale or transfer of the home, along
with a share of the appreciation.
ADU Grant Program: Provides grants for pre-development and
non-recurring closing costs associated with the construction of an
Accessory Dwelling Unit (ADU) on an owner-occupied property.
Eligibility: Typically for low to moderate-income first-time homebuyers. Income
limits and other criteria apply.
Mortgage Credit Certificate (MCC) Program
What it is: A federal tax credit that allows qualified first-time homebuyers to claim
a portion of their annual mortgage interest as a tax credit, dollar-for-dollar, which
can significantly reduce their federal income tax liability. This frees up income for
other expenses and can help them qualify for a larger loan.
Administered by: Various state and local housing finance agencies (e.g.,
CalHFA, GSFA, local county/city housing authorities).
USDA Rural Development - Single Family Housing Direct Home Loans (Section
502 Direct Loan Program)
What it is: Assists low- and very-low-income applicants to obtain decent, safe,
and sanitary housing in eligible rural areas. Provides payment assistance to
reduce mortgage payments.
Who can apply: Applicants must be without decent, safe, and sanitary housing,
unable to obtain a loan elsewhere on reasonable terms, agree to occupy as
primary residence, and meet citizenship/noncitizen requirements.
Details: No down payment typically required. Fixed interest rate (can be as low
as 1% with payment assistance). Up to 33-year payback period (38 years for very
low-income).
