1. The main ways buyers can get down payment assistance
A. “Soft” / deferred second mortgages
Very common structure:
• A 2nd loan behind the first mortgage, used for down payment and/or closing costs.
• Usually 0% or very low interest, with no monthly payment.
• Repaid when the home is sold, refinanced, or after a set number of years, or sometimes forgiven if the buyer stays long enough.
These are what a lot of state and city programs use (CalHFA, LA County, Riverside County, San Diego, etc).
B. Forgivable loans (down payment is wiped out after time)
• Structured as a second mortgage, but forgiven after a few years if the buyer lives in the home and meets program rules.
• If they move or refinance too early, they usually have to pay it back.
C. Grants (true “free money”)
• No repayment if the buyer follows basic rules (owner occupant, etc.).
• Often funded by cities/counties, nonprofits, or employers, using HUD HOME funds or local dollars.
These are less common than loans but incredibly powerful when you find them.
D. Shared appreciation loans
• The program gives, say, up to 20% down payment.
• The buyer doesn’t pay monthly, but when they sell or refi, the program gets its money back plus a slice of the appreciation.
• Example: California’s Dream For All program (currently preparing for a new round in early 2026).
E. Special loan types with low or zero down
Not exactly “assistance” but functionally similar for buyers with little cash:
• FHA loans: as low as 3.5% down, plus many FHA compatible DPA overlays.
• VA loans: 0% down for eligible veterans/servicemembers, often combined with closing cost help.
• USDA loans: 0% down in eligible rural/suburban areas.
• Many state Housing Finance Agencies pair their first mortgage products with DPA (deferred seconds, grants, etc.).
2. Concrete examples in Southern California
Here are some of the bigger tools in your backyard:
Statewide: CalHFA (California Housing Finance Agency)
1. MyHome Assistance Program
o Deferred payment junior loan up to 3–3.5% of the purchase price or appraised value for down payment and/or closing costs (amount depends on whether it’s FHA or conventional).
2. CalPLUS + ZIP
o CalPLUS first mortgage (FHA or conventional) +
o ZIP (Zero Interest Program) 2nd: 0% interest junior loan, up to ~3% of the loan amount for closing costs.
3. Dream For All Shared Appreciation Loan (planning ahead)
o Up to 20% of the home’s price (capped) to help with down payment/closing.
o Buyer repays that plus a share of appreciation when they sell/refi.
o Status: CalHFA says voucher registration will reopen early 2026, so now is prep time (docs, income, homebuyer class).
Los Angeles County & City
1. LA County – Home Ownership Program (HOP80 / HOP120)
o Second mortgage assistance up to 20% of the purchase price (caps vary: ~$85k–$100k).
o Used for down payment and/or closing costs; payments deferred until sale/transfer/refi.
2. LA County – Affordable Homeownership Program (AHOP)
o Down payment assistance via a deferred secondary mortgage for low and moderate income households.
3. City of Los Angeles – Low/Moderate Income Purchase Assistance
o Programs that can provide up to about $161,000 toward down payment, closing costs, and acquisition, at 0% interest and deferred.
San Diego County / Cities
1. County of San Diego First Time Homebuyer DPA
o For low income buyers:
Deferred payment loan up to 22% of price for down payment
Plus 4% (up to $10,000) for closing costs.
o Moderate income version: up to 17% of price as deferred second.
2. City specific add ons (e.g., Chula Vista)
o Up to 22% of price, max $120,000, as a 3% simple interest deferred loan for DP + closing costs.
3. Teacher focused H.O.P.E. grant program (San Diego / Poway)
o New program offering over $40,000 in down payment assistance for certain teachers buying in parts of San Diego.
Inland Empire & Statewide extras
1. Riverside County FTHB Programs
o DPA up to roughly 20% of purchase price for first time buyers, structure varies by funding source.
2. GSFA Platinum (statewide)
o Up to 5.5% of the first mortgage amount for down payment and/or closing costs, aimed at low to moderate income borrowers; no first time requirement.
