Programs that can reduce your down payment burden — and the eligibility rules buyers should know before applying.
A 10% down payment assistance loan that is forgiven after 5 years of owner-occupancy, provided the borrower has not refinanced or sold. Effectively a 10% grant for first-time buyers who stay in the home long-term.
Deferred-payment subordinate loan up to 3.5% of purchase price for closing costs and down payment. Pairs with a CalHFA first mortgage. Repaid only on sale, refinance, or transfer of the property.
Up to 20% down payment assistance in exchange for the state taking a proportional share of future appreciation. Highly competitive — historically allocated by lottery and exhausted quickly. Application windows open intermittently.
Non-repayable grant of up to 5.5% of the loan amount. Available statewide, including high-cost Bay Area counties. Pairs with FHA, VA, USDA, or Conventional first mortgages. No first-time buyer requirement.
San Mateo County operates several locally-funded assistance programs through the Department of Housing and HEART of San Mateo County. Income limits and assistance amounts vary by program and city. Programs include closing cost grants, down payment loans, and below-market-rate ownership opportunities.
Down payment assistance up to 17% of purchase price, in exchange for a shared-appreciation interest. Targets first-time buyers in Santa Clara County. Operated by Housing Trust Silicon Valley.
Several Peninsula cities operate their own below-market-rate (BMR) ownership programs and first-time buyer loans. Program rules vary widely. Palo Alto, Mountain View, and Sunnyvale have particularly active BMR programs. San Mateo, Redwood City, and Belmont also operate selective programs.
For state programs, mostly yes. CalHFA income limits in San Mateo and Santa Clara counties top out around $300-330K for a family. GSFA's $226K limit is lower. If you're a high earner, your path is usually a conventional loan with a lower down payment (5-10%) plus PMI, or a piggyback / second mortgage structure. The math frequently works out in your favor without any DPA program.
You give up future upside. If you take a 20% Dream For All loan and the home appreciates from $1M to $1.4M (40% gain), you owe back the principal plus 15-20% of the $400K appreciation = $260K total instead of $200K. That's still a very good deal versus paying full down payment, but understand you're not getting a free 20%. Always model your specific scenario before signing.
Mixed. In a competitive Peninsula market, listing agents sometimes view DPA-backed offers as harder to close (extra approvals, longer escrows, additional underwriting). All-cash and conventional offers can win against DPA-backed offers even at the same price. Strategies that help: pre-approval letters from a DPA-experienced lender, longer earnest money, demonstrated reserves. A good buyer's agent will package the offer to overcome the perception.
Most California programs define first-time buyer as someone who has not owned a primary residence in the past 3 years. So if you owned a condo 5 years ago and now rent, you usually qualify. Investment property ownership generally doesn't disqualify you. Inheriting a home does. Always read the specific program's first-time buyer definition — it varies.
Lisa partners with local lenders who specialize in California DPA stacking — combining state, county, and city programs into a single offer.
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