Down Payment Assistance Programs That Aren't Dream For All

Dream For All is the DPA program that gets all the headlines. And for good reason. Up to $150,000 in down payment assistance. No monthly payments. 20% of the purchase price. It's a massive program.

It's also a lottery. The 2026 registration window opened in late February and closed in mid-March. CalHFA expected to distribute $150 to $200 million this round. Thousands of buyers registered. The ones who get selected are chosen randomly, not first-come, first-served. If you didn't get picked, you're back to square one.

Except you're not. Because Dream For All isn't the only DPA program in California. It's not even the most reliable one. There are programs available year-round that most buyers have never heard of, and some of them can get you into a home with less than 1% out of pocket.

Here's the lineup you should actually know about.

CalHFA MyHome Assistance Program

If Dream For All is the flashy headliner, MyHome is the reliable workhorse. It's been around for years, it's generally available year-round, and it doesn't require a lottery.

MyHome provides a deferred-payment second mortgage of up to 3% of the purchase price (or 3.5% for FHA loans) to cover your down payment and closing costs. There are no monthly payments on the assistance. It sits quietly behind your first mortgage and isn't repaid until you sell, refinance, or pay off the loan.

To qualify, you need to be a first-time buyer (haven't owned a home in the past 3 years), use a CalHFA first mortgage through an approved lender, meet the income limits for your county (which range from about $83,500 to over $316,000 depending on household size and location), have a minimum credit score of 660 for conventional or 660 for FHA, and complete an 8-hour homebuyer education course.

On a $600,000 home with an FHA loan, 3.5% MyHome assistance is $21,000. That covers your entire FHA minimum down payment. Pair it with seller credits for closing costs and you could be looking at almost nothing out of pocket.

This is the program I point most California first-time buyers toward as a starting point, but it comes with a trade-off you need to understand. CalHFA second mortgages (other than Dream For All) will not subordinate. That means if you want to refinance your first mortgage later to get a lower rate, CalHFA won't step aside and let the new first mortgage take priority. You'd have to pay off the CalHFA second entirely, or roll it into your refinance, which you can only do after one year and only if you have enough equity to absorb it.

That subordination issue matters more than most buyers realize. If rates drop a full percent in 18 months and you want to refinance, owing $21,000 on a CalHFA second that won't subordinate can complicate or kill that refinance. It's not a dealbreaker, but it's something you need to plan for.

This is also why I don't automatically steer every buyer toward CalHFA. I have access to other DPA programs through my wholesale lender network that may work better depending on your situation.

CalHFA ZIP (Zero Interest Program)

ZIP provides up to 3% of the loan amount as a zero-interest, deferred second mortgage specifically for closing costs. It's designed to pair with CalPLUS first mortgages (which have slightly higher rates than standard CalHFA loans).

The CalPLUS + ZIP combination is powerful because it covers closing costs through the program rather than requiring the buyer to bring that money to the table. The slightly higher interest rate on the CalPLUS first mortgage is the trade-off, and it's worth running the numbers to see if the rate premium costs more or less than the closing costs you'd otherwise pay out of pocket.

ZIP requires the same basic eligibility as other CalHFA programs: first-time buyer, income limits, homebuyer education, and a CalHFA-approved lender.

Chenoa Fund

The Chenoa Fund is a national program administered by CBC Mortgage Agency, and it's available in California through participating lenders. It provides 3.5% or 5% of the loan amount in down payment assistance as either a repayable second mortgage or a forgivable loan (forgiven after 36 months of on-time payments on the primary version).

Chenoa is worth knowing about because it's simpler than CalHFA programs and has fewer restrictions. There are no first-time buyer requirements on all versions. The credit score minimums start at 600-620 depending on the program version. And it pairs with FHA loans without requiring a CalHFA first mortgage, which means more lender options.

The trade-off is that the repayable version has a 10-year term with monthly payments, and the interest rates on the first mortgage may be slightly higher. But for buyers who need the help and don't qualify for CalHFA, Chenoa is a legitimate path.

Local City and County Programs

On top of the statewide options, California has dozens of city and county DPA programs spread across the state. Nearly every major metro area and many smaller cities run their own assistance programs with their own funding, eligibility rules, and assistance amounts. These are separate from CalHFA and Chenoa, and they're often the most generous programs available because they're funded by local housing trust funds, CDBG grants, or municipal budgets.

Some of the notable ones in my service areas:

The Long Beach First-Time Homebuyer Program has provided up to $25,000 in down payment and closing cost assistance for income-eligible households, but as of early 2026, the program's current funding round is depleted. New funding may become available in future city budget cycles. If you're buying in Long Beach, it's worth checking with the city periodically, but don't build your plan around it.

Los Angeles County runs the Affordable Homeownership Program through LACDA, providing DPA to low and moderate income households throughout unincorporated LA County and many cities within the county.

Orange County and individual cities within OC have their own programs that vary by jurisdiction and funding cycle.

Beyond SoCal, cities like San Francisco (DALP program, up to $500,000 for qualifying buyers), San Diego, Sacramento, San Jose, and Oakland all run local DPA programs with varying amounts and eligibility. Smaller cities and counties throughout the Central Valley, Inland Empire, and Northern California also have programs that fly under the radar.

The challenge with local programs is tracking them. Funding comes and goes. Programs open and close throughout the year. Eligibility rules change. Most buyers don't even know their city or county has a program until someone tells them. That's one of the things I actively track for my clients.

These local programs can often be stacked with state programs, meaning you could combine CalHFA MyHome with a county DPA program to cover both your down payment and closing costs. The key is knowing what's available and having a lender who monitors the funding cycles.

Wholesale Lender DPA Programs (The Ones Nobody Talks About)

Beyond the statewide programs, I have access to down payment assistance through my wholesale lending partners. These are lender-specific DPA products that don't require CalHFA approval, don't have the same subordination restrictions, and come in different flavors:

Grants. Some wholesale lenders offer true grants of 2-3.5% of the loan amount. This is money that doesn't need to be repaid. Ever. No second mortgage, no lien, no repayment when you sell. The trade-off is typically a slightly higher rate on the first mortgage, which is how the lender funds the grant.

Forgivable seconds. These are second mortgages that are forgiven after a set period (usually 3-5 years) as long as you stay in the home and make your payments. If you sell or refinance before the forgiveness period, you repay the balance. These are a strong option for buyers who plan to stay put.

Repayable seconds with subordination. Some wholesale lender DPA programs are structured as second mortgages with monthly payments, but unlike CalHFA, they will subordinate. That means if rates drop and you want to refinance your first mortgage, the DPA lender will step aside and let the new first take priority. You keep the DPA in place and just refinance the first. This is a significant advantage over CalHFA's no-subordination policy.

These programs change frequently. Lenders launch them, adjust them, and sometimes discontinue them. Having a broker who actively tracks what's available across multiple lenders is the difference between finding the right program and not knowing it exists.

Understanding the Trade-Offs

Not all DPA is created equal. Here's the honest framework for evaluating your options:

CalHFA MyHome gives you a deferred second with no monthly payment and no interest. That sounds great. But it won't subordinate, which limits your flexibility if you want to refinance later. And the CalHFA first mortgage rate may not be the most competitive rate available to you.

Wholesale lender grants eliminate the DPA as a future issue entirely (nothing to repay, nothing to subordinate). But the rate premium on the first mortgage means you're paying for the grant through a higher monthly payment. Over 5-7 years, does the grant save you money or cost you money compared to a lower rate with no grant? That depends on how long you stay.

Forgivable seconds split the difference. No payment, forgiven after a few years, but if you sell early, you repay it. If you know you're staying 5+ years, this is often the sweet spot.

The right answer depends on how long you plan to keep the home, whether you anticipate refinancing, and what the total monthly cost looks like under each option. This is exactly the comparison I run for every buyer who comes in asking about DPA. I don't just find you a program. I show you the math on all of them and let the numbers decide.

The Stacking Strategy

The real power of California DPA isn't any single program. It's combining them.

A common stack looks like this: CalHFA FHA first mortgage + MyHome for 3.5% of the purchase price (covers your down payment) + seller concessions or a local DPA program for closing costs. Total out of pocket: potentially under $2,000 on a $500,000-$600,000 home.

Another combination: CalPLUS FHA first mortgage + ZIP for closing costs + MyHome for down payment. The CalPLUS rate is slightly higher, but both your down payment and closing costs are covered by assistance programs.

Not every combination works for every buyer. Income limits, credit scores, and program availability all factor in. But the point is: if you're only looking at one program, you're not seeing the full picture.

The Broker Advantage on DPA

Here's the part that most buyers don't realize: not every lender offers every DPA program. CalHFA programs require a CalHFA-approved lender. Chenoa requires a participating lender. Local programs have their own lender lists.

I can originate CalHFA loans, including MyHome, ZIP, and CalPLUS. I also have access to wholesale lender DPA programs (grants, forgivable seconds, and repayable seconds) that don't go through CalHFA at all. That means I can compare the full landscape side by side: CalHFA with no-subordination deferred seconds versus wholesale lender grants versus forgivable loans versus programs with subordination flexibility.

Most lenders only have access to one or two of these paths. They'll put you into whatever they have without showing you the alternatives. I show you all of them, run the total cost over your expected time in the home, and let the math decide.

I also track which programs currently have funding. DPA programs run on cycles. Some are available year-round. Others open and close based on funding allocation. Knowing what's available right now, not six months ago, is the difference between getting the help and missing it.