What is Down Payment Assistance?
Down Payment Assistance (DPA) programs help California home buyers cover the upfront costs of purchasing a home. These programs provide grants, deferred loans, or forgivable loans to make homeownership more accessible.
Why DPA Programs Exist
- Help first-time buyers overcome the down payment barrier
- Support moderate-income families in high-cost areas like Santa Clarita
- Encourage homeownership in California communities
- Provide special assistance for teachers, veterans, and public servants
How DPA Programs Work
Free money that doesn't need to be repaid (like AccessZero)
0% interest loans with no monthly payment, due when you sell or refinance
Loans that are forgiven if you stay in the home for a certain period
Common Myths Debunked
"DPA programs are only for low-income buyers"
Many programs serve moderate and even middle-income families, especially in high-cost areas like Santa Clarita.
"Using DPA makes my offer less competitive"
Sellers typically don't know or care about your financing details—they just want a qualified buyer.
"I have to pay back DPA immediately"
Most programs offer deferred payment (due only when you sell) or are fully forgivable after a few years.
"DPA programs are too complicated"
With the right lender, the process is streamlined. We'll guide you through every step.
Available DPA Programs
Explore three major down payment assistance programs available to Santa Clarita home buyers
CalHFA Programs
California's Premier DPA Programs
MyHome Assistance Program
- First-time buyer or haven't owned home in 3 years
- Income limits apply (varies by county)
- Must complete homebuyer education
- Combined with FHA, VA, USDA, or conventional loan
CalPLUS Conventional with ZIP
- Moderate-income buyers
- Slightly higher interest rate on first mortgage
- Credit score 680+recommended
- 30-year fixed rate conventional loan
CalPLUS FHA
- Credit scores as low as 640
- Lower down payment requirements
- FHA mortgage insurance required
- Income limits apply
Extra Credit Teacher Program (ECTP)
- Must be a credentialed teacher or education employee
- Working in California public school
- Income limits may be waived
- May have reduced mortgage insurance
AccessZero FHA Program
True Zero Down Payment Solution
GSFA (Golden State Finance Authority)
Flexible Assistance Options
Compare DPA Programs
Side-by-side comparison of all available down payment assistance programs
| Program | Max Assistance | Interest Rate | Repayment | Min Credit | First-Time | Education | Best For |
|---|---|---|---|---|---|---|---|
CalHFA MyHome CalHFA | Up to 3.5% | 0% | Deferred (due on sale/refinance) | 640 | Minimize out-of-pocket costs | ||
CalPLUS with ZIP CalHFA | Up to $110,000 | 0% | Deferred (due on sale/refinance) | 680 | Maximum assistance seekers | ||
CalPLUS FHA CalHFA | 3.5% minimum | 0% | Deferred payment | 640 | Lower credit scores | ||
Extra Credit Teacher CalHFA | Up to $110,000 | 0% + reduced mortgage rate | Deferred payment | 640 | Teachers & education staff | ||
AccessZero FHA AccessZero | 3.5% grant + 3.5% FHA | Grant (no repayment) | Forgiven after 5 years | 580 | True zero down payment | ||
GSFA MyHome GSFA | 3.5% or $15,000 max | 0% | Silent second (due on sale) | 640 | Moderate assistance seekers |
CalHFA MyHome
Minimize out-of-pocket costs
CalPLUS with ZIP
Maximum assistance seekers
CalPLUS FHA
Lower credit scores
Extra Credit Teacher
Teachers & education staff
AccessZero FHA
True zero down payment
GSFA MyHome
Moderate assistance seekers
Check Your Eligibility
Answer a few quick questions to see which DPA programs you may qualify for
DPA Eligibility Calculator
Get instant results based on your situation
* This calculator provides estimates only. Actual eligibility depends on many factors including specific county limits, property type, and lender requirements. Contact us for a detailed qualification assessment.
Real-World Success Stories
See how real Santa Clarita home buyers used DPA programs to achieve homeownership
First-Time Buyer in Valencia
Buyer Profile
Property Details
Financial Breakdown
Key Benefits:
- Zero interest on DPA loan
- No monthly payment on $25,375
- Only paid back when selling or refinancing
- Kept $5,000 in reserves for moving costs
Result:
Successfully purchased their dream home with minimal cash out-of-pocket
Teacher Buying in Stevenson Ranch
Buyer Profile
Property Details
Financial Breakdown
Key Benefits:
- Received maximum DPA as credentialed teacher
- Qualified for reduced mortgage interest rate
- Kept all $20,000 savings for furniture and reserves
- Income limits waived for education professionals
Result:
Became a homeowner with zero down payment and lower monthly costs
Zero Down with AccessZero in Newhall
Buyer Profile
Property Details
Financial Breakdown
Key Benefits:
- True zero down payment solution
- $20,300 grant forgiven after 5 years
- Lower credit score accepted (580+ minimum)
- Kept all savings for closing costs and reserves
Result:
Achieved homeownership with literally $0 down payment
Move-Up Buyer in Canyon Country
Buyer Profile
Property Details
Financial Breakdown
Key Benefits:
- Received maximum ZIP assistance despite not being first-time buyer
- Zero interest, deferred payment structure
- Kept $45,000 for home improvements and reserves
- Conventional loan (no FHA mortgage insurance after 20% equity)
Result:
Upgraded to larger home while preserving cash for renovations
Note: These examples are based on typical scenarios and are for illustrative purposes only. Actual down payment assistance amounts, interest rates, monthly payments, and eligibility requirements vary based on individual circumstances, lender requirements, current market rates, and program availability. All buyers completed required homebuyer education courses. Contact us for a personalized assessment based on your specific situation.
Your Path to DPA Success
Follow these 6 steps to successfully use down payment assistance for your Santa Clarita home
Complete Homebuyer Education
Take an approved 8-hour homebuyer education course (available online)
- Required for all DPA programs
- Online courses available ($50-$99)
- Can be completed in one day or over several sessions
- Receive certificate of completion
Approved Providers:
Complete Homebuyer Education
Take an approved 8-hour homebuyer education course (available online)
- Required for all DPA programs
- Online courses available ($50-$99)
- Can be completed in one day or over several sessions
- Receive certificate of completion
Approved Providers:
Choose Your DPA Program
Work with us to determine which program(s) best fit your situation
- Review your income, credit score, and savings
- Identify qualifying programs
- Compare assistance amounts and terms
- Get pre-qualified with approved lender
Pro Tip:
You can apply for multiple programs simultaneously to maximize your options
Choose Your DPA Program
Work with us to determine which program(s) best fit your situation
- Review your income, credit score, and savings
- Identify qualifying programs
- Compare assistance amounts and terms
- Get pre-qualified with approved lender
Pro Tip:
You can apply for multiple programs simultaneously to maximize your options
Get Pre-Approved with DPA Lender
Work with a lender approved to process your chosen DPA program
- Not all lenders are approved for all DPA programs
- Provide income documentation and credit authorization
- Lender verifies your eligibility and calculates assistance
- Receive pre-approval letter with DPA included
Pro Tip:
We can connect you with experienced DPA-approved lenders who specialize in Santa Clarita
Get Pre-Approved with DPA Lender
Work with a lender approved to process your chosen DPA program
- Not all lenders are approved for all DPA programs
- Provide income documentation and credit authorization
- Lender verifies your eligibility and calculates assistance
- Receive pre-approval letter with DPA included
Pro Tip:
We can connect you with experienced DPA-approved lenders who specialize in Santa Clarita
Find Your Home & Make an Offer
Search for homes within your budget and submit competitive offers
- Your offer is just as competitive as any other qualified buyer
- Sellers don't see your financing details
- Your pre-approval letter shows you're a serious buyer
- DPA programs work with all property types (within limits)
Pro Tip:
Most Santa Clarita sellers care about price and closing timeline, not your financing method
Find Your Home & Make an Offer
Search for homes within your budget and submit competitive offers
- Your offer is just as competitive as any other qualified buyer
- Sellers don't see your financing details
- Your pre-approval letter shows you're a serious buyer
- DPA programs work with all property types (within limits)
Pro Tip:
Most Santa Clarita sellers care about price and closing timeline, not your financing method
Complete Loan Processing
Your lender processes both your primary mortgage and DPA loan
- Submit full documentation (pay stubs, tax returns, bank statements)
- Complete home appraisal and inspection
- Underwriter reviews and approves both loans
- Sign final DPA program documents
Important:
DPA loans are processed alongside your primary mortgage - it's all part of one closing
Complete Loan Processing
Your lender processes both your primary mortgage and DPA loan
- Submit full documentation (pay stubs, tax returns, bank statements)
- Complete home appraisal and inspection
- Underwriter reviews and approves both loans
- Sign final DPA program documents
Important:
DPA loans are processed alongside your primary mortgage - it's all part of one closing
Close & Move In!
Sign final documents, receive your keys, and become a homeowner
- Review Closing Disclosure 3 days before closing
- Attend closing appointment (1-2 hours)
- Sign loan documents for primary mortgage and DPA
- Receive keys to your new home!
🎉 Success!
Congratulations - you're now a homeowner with significantly reduced out-of-pocket costs!
Close & Move In!
Sign final documents, receive your keys, and become a homeowner
- Review Closing Disclosure 3 days before closing
- Attend closing appointment (1-2 hours)
- Sign loan documents for primary mortgage and DPA
- Receive keys to your new home!
🎉 Success!
Congratulations - you're now a homeowner with significantly reduced out-of-pocket costs!
Important Things to Know
Critical information every DPA applicant should understand before getting started
Income Limits Vary by County
Los Angeles County (including Santa Clarita) has specific income limits that vary by household size and program. These limits are typically higher than you might expect.
Key Points:
- Limits range from ~$135,000 to $175,000+ depending on program and household size
- Teachers and certain professions may have waived income limits
- Limits are based on gross household income (before taxes)
- Updated annually based on Area Median Income (AMI)
Remember:
Even if you think you earn "too much," you may still qualify - always check current limits!
Property Type Restrictions
DPA programs can be used on most property types, but there are some restrictions to be aware of.
Key Points:
- Primary residence only (must live in the home)
- Single-family homes, townhomes, and condos typically approved
- Manufactured homes may be eligible with certain programs
- Investment properties and second homes NOT eligible
- Property must meet minimum property standards
Remember:
The home must be your primary residence - you cannot use DPA for rental or vacation properties.
Repayment Timing Matters
Understanding when and how you repay DPA funds is crucial to long-term planning.
Key Points:
- Most programs: Deferred payment (due when you sell, refinance, or pay off mortgage)
- AccessZero: Grant forgiven after 5 years of occupancy
- If you refinance, you may need to repay the DPA or refinance it into your new loan
- Selling within a few years means you'll need to repay from sale proceeds
- No monthly payment on DPA portion (except some specialized programs)
Remember:
Plan to stay in your home for at least 3-5 years to maximize the benefit of DPA programs.
Interest Rates May Be Slightly Higher
Some DPA programs (like CalPLUS) come with a slightly higher interest rate on your primary mortgage.
Key Points:
- Rate increase typically 0.125% to 0.375% higher than standard rates
- This premium allows the program to fund the down payment assistance
- You can often refinance to a lower rate once you have 20% equity
- The small rate increase is usually worth it for the significant down payment help
- Some programs (like MyHome) don't increase your rate at all
Remember:
Example: On a $700,000 loan, a 0.25% rate increase = ~$100/month, but you got $25,000+ in down payment help.
Mortgage Insurance Requirements
DPA programs combined with different loan types have varying mortgage insurance requirements.
Key Points:
- FHA loans: Mortgage insurance required for life of loan (if down payment < 10%)
- Conventional loans: PMI required until 20% equity, then can be removed
- VA loans: No mortgage insurance, only VA funding fee
- Some programs offer reduced mortgage insurance rates for teachers/public servants
- Factor MI costs into your monthly budget calculations
Remember:
Budget for mortgage insurance - it can add $200-$400/month to your payment depending on loan type and down payment.
Homebuyer Education is Mandatory
All DPA programs require completion of an approved homebuyer education course before closing.
Key Points:
- 8-hour course covering budgeting, mortgages, home maintenance, and more
- Online courses available ($50-$99) - can complete at your own pace
- In-person classes also available (often free or low-cost)
- Must be completed BEFORE closing (ideally before making an offer)
- Certificate valid for 1-2 years depending on program
Remember:
Complete your homebuyer education early! It's required and actually provides valuable information.
Additional Considerations
Program Funding
DPA programs have limited funding and can run out. Apply early in the year when programs are replenished, and work with experienced lenders who can reserve funds.
Combining Programs
You generally cannot combine multiple DPA programs for the same purchase. However, you can combine DPA with VA benefits, USDA loans, and other loan types.
Documentation Requirements
Be prepared to provide extensive documentation: 2 years tax returns, 2 months pay stubs, 2 months bank statements, proof of assets, employment verification, and more.
Common Misconceptions Debunked
❌ Myth:
"I make too much money to qualify for DPA."
✅ Reality:
Many programs serve moderate and middle-income families. Income limits in LA County can exceed $170,000+ for some programs.
❌ Myth:
"Sellers won't accept offers using DPA."
✅ Reality:
Sellers don't know (or care) about your financing source. They see a qualified buyer with a pre-approval letter - that's all that matters.
❌ Myth:
"DPA takes forever and will delay my closing."
✅ Reality:
With an experienced DPA lender, timelines are the same as conventional financing. Most close in 30-45 days with no issues.
Frequently Asked Questions
Get answers to the most common questions about down payment assistance programs
Still Have Questions?
DPA programs can be complex, and every situation is unique. We're here to answer your specific questions and help you determine which programs you qualify for.
DPA Resources
Everything you need to research, apply for, and successfully use down payment assistance
Official Program Websites
CalHFA (California Housing Finance Agency)
Official CalHFA website with program details, income limits, and lender directory
Approved Homebuyer Education Providers
Note: All providers listed are HUD-approved and accepted by CalHFA, AccessZero, and GSFA programs. Complete your education course before making an offer to ensure you're ready to move quickly.
Helpful Resources & Tools
Recommended DPA Lender in Santa Clarita
Why Work with a DPA-Experienced Lender? Not all lenders are familiar with DPA programs. Working with an experienced DPA lender ensures: faster processing, proper program selection, fund reservation (programs can run out), competitive rates, and smooth closing. We partner with lenders who have successfully closed hundreds of DPA loans in Santa Clarita.
DPA Application Checklist (Coming Soon)
Download our comprehensive checklist covering all documents needed for DPA application, timeline expectations, and pro tips from experienced buyers.
Or contact us directly for a personalized document checklist based on your specific situation
Ready to Use DPA for Your Santa Clarita Home?
Don't let the down payment be a barrier to homeownership. With up to $110,000+ in assistance available, your dream home is closer than you think. Let's get started today.
What Happens When You Contact Us:
Free Consultation
We'll discuss your situation, income, credit, and homebuying goals with no obligation.
Program Matching
We'll identify which DPA programs you qualify for and estimate your assistance amount.
Lender Connection
We'll connect you with our experienced DPA lender for pre-approval and next steps.
No Obligation
Free consultation with no pressure or commitment
Expert Guidance
15+ years helping Santa Clarita buyers navigate DPA
Local Knowledge
Deep expertise in Santa Clarita market and neighborhoods