CalHFA Down Payment Assistance 2026: MyHome & Income Limits

California buyers can review their plans and take the next step toward homeownership with a local home in view.

Saving a down payment can feel like a steep climb in California, where home prices in many communities make even a modest percentage a substantial sum. CalHFA’s MyHome Assistance Program may help eligible buyers bridge that gap with a deferred-payment second mortgage. It’s available year-round through a CalHFA-approved lender, rather than only during a limited application window.

That distinction matters if you’re comparing MyHome with Dream For All. Dream For All uses a randomized drawing, and its 2026 application portal closed March 16. New applications are not currently being accepted. MyHome is a separate program and cannot be combined with the Dream For All Shared Appreciation Loan.

I’ll walk you through the assistance amounts, 2026 county income caps, credit and debt-to-income (DTI) guidelines, and education requirements. The figures are useful for planning, but they aren’t a loan approval. Confirm your specific scenario with a CalHFA-approved lender before you count on assistance.

1. MyHome Junior Loan Options: FHA (3.5%) vs. Conventional (3%) Math

MyHome is a deferred-payment junior loan, also called a second mortgage. It can help eligible buyers with down payment and closing costs. It’s sometimes described as a “silent second” because there are no monthly payments required on that lien.

The program’s key figures are:

✔ With a CalHFA FHA first mortgage, MyHome assistance can be up to 3.5% of the lesser of the purchase price or appraised value.

✔ With a CalHFA Conventional first mortgage, MyHome assistance can be up to 3.0% of the lesser of the purchase price or appraised value.

✔ The maximum combined loan-to-value (CLTV) is 105%. Your lender needs to check how the cap applies to your transaction.

✔ The MyHome second lien has 1% simple interest. Repayment is deferred for the life of the first mortgage, but the balance becomes due if the property is sold, title is transferred, the property is refinanced, the first loan is paid off, or a notice of default is formally recorded.

For the program’s current terms, see CalHFA’s MyHome Assistance Program.

Here’s how the FHA figures work on a $700,000 purchase:

• Standard FHA down payment: $700,000 × 3.5% = $24,500, plus closing costs.
• CalHFA FHA + MyHome: a $24,500 MyHome junior lien may cover the down payment, leaving $0 out of pocket for the down payment.
• First mortgage: $700,000 − $24,500 = $675,500.
• Junior lien: $24,500.
• Combined financing: $700,000 against the $700,000 purchase price.

That example gives a CLTV of 100% before considering any other financing or transaction details. It’s below the program’s 105% maximum, but your lender must confirm the available headroom and applicable calculations for your actual case.

And here’s the part I don’t want you to miss: $0 down payment is not the same as $0 cash to close. Earnest money, a home inspection, appraisal, prepaid interest and taxes, and title and escrow fees are separate costs. The practical benefit is that your savings may go toward those standard costs instead of the down payment.

For another California-focused look at low-down-payment structures, read my guide to FHA loans versus conventional loans with 3% down.

2. 2026 County Income Caps: Qualifying Rules Across CA Metros

CalHFA’s 2026 income limits took effect June 30, 2026. The caps depend on the county where the home is located. The table below shows selected county limits for CalHFA first and subordinate mortgages, including MyHome.

California county	2026 income limit
Kern	$192,000
Fresno	$192,000
Butte	$192,000
Merced	$192,000
Los Angeles	$214,000
Riverside	$210,000
San Bernardino	$210,000
Orange	$274,000
San Diego	$259,000
Alameda	$322,000
Santa Clara	$325,000
San Francisco	$325,000
San Mateo	$325,000
Marin	$325,000

These are examples, not a complete list of county limits. Check the official CalHFA income-limit table for the county you’re considering.

One common mix-up: CalHFA does not simply add up every person who lives in the home. The income test uses the credit-qualifying income the lender uses on your mortgage application under applicable GSE or investor guidelines. Income from an occupant that isn’t used by the lender to qualify the mortgage does not count toward the CalHFA limit.

I’d confirm the applicable county cap using the effective date tied to your application or loan reservation. Don’t assume a prior-year cap, or an online estimate, still applies.

California’s Central Valley offers a range of residential settings for buyers comparing home prices and assistance eligibility.

3. Credit Scores, DTI Caps & Mandatory Homebuyer Education Requirements

Credit score and DTI requirements depend on the first mortgage, underwriting path, and property details. The following figures are useful starting points, not a guarantee that you’ll qualify.

✔ CalHFA FHA: The minimum FICO score is 640 for the standard automated underwriting path. A 660 minimum applies to certain manufactured-housing or manual-underwriting scenarios.

✔ CalHFA Conventional: The minimum is 660 for borrowers at or below 80% of area median income under HomeReady, and 680 for borrowers above that threshold.

✔ DTI: The maximum is generally 45% for scores below 700. Automated underwriting approvals may allow up to 50% DTI with a credit score of 700 or higher.

DTI compares your monthly debts with your qualifying monthly income. A higher ratio can leave less room in your budget after the mortgage payment, so it’s worth reviewing your complete monthly obligations, not just the new house payment.

CalHFA’s first-time homebuyer definition generally requires that you have not owned and occupied a principal residence during the last three years. At least one occupying first-time homebuyer must complete the required education and counseling.

The accepted options are:

✔ The eight-hour eHome America online course, including its required follow-up counseling. It is CalHFA’s only accepted online option. You can review course information at eHome America.

✔ An approved live course through a HUD-approved housing counseling agency or NeighborWorks agency.

The certificate of completion must be obtained before loan closing. Leave enough time for the course and follow-up counseling; saving it for the final week can add avoidable pressure.

Confirm before you count on it:

✔ Confirm your lender is CalHFA-approved.

✔ Confirm the county income limit effective for your application or reservation date.

✔ Confirm the credit-score floor for your chosen first mortgage and underwriting path.

✔ Complete the required homebuyer education and obtain your certificate before closing.

Step-by-Step Pre-Approval Checklist

I suggest following these steps in order so you can catch eligibility issues early:

1. ✔ Pull credit and review baseline scores. Check that all borrowing applicants meet the minimum score for the CalHFA first mortgage you’re considering. Ask the lender how the score, property type, and underwriting method affect the minimum.

2. ✔ Calculate qualifying income. Review the income the lender will use for qualification, including applicable base pay, bonus, or overtime income. Compare it with the current 2026 limit for the county where you plan to buy.

3. ✔ Complete homebuyer education. Take the eight-hour eHome America course with follow-up counseling, or an approved live course. Get your completion certificate before closing.

4. ✔ Partner with a CalHFA-approved lender. CalHFA assistance is originated through approved lenders, not directly by the agency. Ask the lender to structure the first mortgage and MyHome subordinate lien together, then review the rate, fees, cash to close, and CLTV calculation.

For a related overview of California down payment assistance, read how to qualify for California down payment assistance.

FAQ

Does MyHome have to be repaid?
Yes. Payments on the second lien are deferred, not forgiven. The balance becomes due under the events described above, including a sale, title transfer, refinance, or payoff of the first mortgage.

Who counts as a first-time homebuyer?
For CalHFA purposes, you generally must not have owned and occupied a principal residence in the last three years. Your lender can confirm how that definition applies to your history.

Does MyHome cover every cost at closing?
No. It may help with down payment and closing costs, subject to program limits and transaction details. You may still need funds for earnest money, inspection, appraisal, prepaid items, and other closing expenses.

Bottom line

MyHome can reduce the amount you need for a down payment, but the second lien is still a loan and your full cash-to-close estimate matters. I’ll explain the costs up front. My approach is total transparency, with no hidden costs from me.

Program limits and guidelines can change, and lenders may apply their own overlays and minimum requirements. Confirm current terms with a CalHFA-approved lender before making decisions.

If you’d like to talk through your income, credit, and cash-to-close estimate, book a one-on-one mortgage strategy call with me.

A one-on-one review can help you organize your California homebuying questions before you apply.

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Corey Friedrich, NMLS #2746546
Mortgage Loan Officer | Remote Online Notary
BestDealFirst.com | Buy, Refi, Home Equity or Notarize
Direct Line: 909-550-1146 (Call or Text)
Email: Corey@BestDealFirst.com
Website: www.BestDealFirst.com
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