If there’s one thing I’ve learned in my 20+ years as a California real estate broker, it’s that the dream of homeownership here requires not just determination, but also knowing which programs can give you a financial boost. I’m David Martinez, and from my office in Pasadena to client meetings across Los Angeles County, I’ve helped hundreds of first-time buyers navigate California’s unique assistance landscape.
The 2025 market is presenting both challenges and opportunities for first-timers. With interest rates finally stabilizing and some inventory improvements in certain regions, this might be your year—especially if you leverage the right programs. Let me walk you through the best options available to California’s first-time homebuyers right now.
CalHFA Programs: Still the Gold Standard in 2025
The California Housing Finance Agency (CalHFA) continues to be the backbone of first-time buyer assistance in our state. What I appreciate most about their programs is how they’ve evolved to meet the realities of our housing market.
Their flagship CalHFA Conventional Loan Program now offers competitive interest rates with down payment assistance options. For 2025, they’ve increased their income limits to reflect California’s high cost of living—now up to $165,000 in high-cost counties like Los Angeles, San Francisco, and Orange County. That’s a significant jump from when I first started recommending these programs back in the early 2000s!
The MyHome Assistance Program remains one of my personal favorites to recommend. It provides a deferred-payment junior loan (essentially a second mortgage) of up to 3.5% of the purchase price or appraised value. What makes this program special? The loan has zero interest and no monthly payments—you only repay it when you sell, refinance, or pay off your primary mortgage.
I had clients last summer—a teacher and a graphic designer—who were convinced they needed to save for another three years to afford a home in Highland Park. Using the MyHome program, they were able to get into a charming bungalow with much less down than they thought possible. Between you and me, they’re already up about 6% in equity.
The California Dream For All Program: New Changes for 2025
When the California Dream For All Shared Appreciation Loan was first introduced, it was revolutionary but limited in funding. Good news for 2025: the program has been refinanced and expanded!
This program now offers first-time homebuyers a loan for up to 20% of the purchase price of a home. The catch—or benefit, depending on how you look at it—is that when you sell or refinance, you repay the loan plus a proportion of your home’s appreciation equal to the assistance percentage you received.
For example, if you received 20% assistance and your home increased in value by 20,000 of the appreciation.
The 2025 updates include:
- Expanded eligibility to moderate-income buyers (up to 150% of area median income)
- Higher property value limits in recognition of California’s expensive markets
- Prioritization for first-generation homebuyers (those whose parents never owned a home)
- Special allocations for educators and first responders
My wife Elena, who works in mortgage lending, has been particularly impressed with how this program helps buyers afford homes in neighborhoods they otherwise couldn’t consider. Just last month, we helped a first-generation college graduate use this program to buy in Sherman Oaks—an area that would have been completely out of reach otherwise.
Local Programs: The Hidden Gems Most Buyers Miss
Here’s something many first-time buyers don’t realize—and honestly, even some real estate agents overlook: many California cities and counties offer their own down payment assistance programs that can be combined with state resources.
In Los Angeles, the City of Los Angeles Home purchase Assistance Program provides loans up to $90,000 for first-time homebuyers (as of the 2025 update). Similar programs exist in San Diego, San Francisco, and Sacramento, each with their own terms and benefits.
The ACCESS Program in Orange County continues to be one of the most generous in 2025, offering loans up to $100,000 that are forgivable if you stay in the home for 15 years. That’s essentially free money if you’re planning to put down roots!
What I’ve seen in my years working this market is that these local programs often have less competition than statewide offerings. I remember working with a couple looking in Burbank who were discouraged by the competitive bidding wars. We discovered Burbank’s first-time buyer program, which not only provided $50,000 in assistance but also gave them priority on city-owned properties. They closed on a charming 1940s home near Magnolia Boulevard without facing multiple competing offers.
Federal Programs With California-Specific Benefits
While these aren’t exclusive to California, several federal programs have been tailored to work particularly well in our high-cost market:
FHA Loans remain popular, especially with the 2025 adjustments to mortgage insurance premiums that make them more affordable in high-cost areas. The 3.5% down payment requirement is still in place, but the loan limits have been increased significantly for California counties—now up to $1,089,300 in the most expensive markets like San Francisco and parts of Los Angeles.
VA Loans are, frankly, incredible for those who qualify. With no down payment required and no mortgage insurance, they’re a powerful tool in California’s expensive market. I’ve helped several veterans buy homes along the 210 corridor from Pasadena to Rancho Cucamonga using VA loans, and the process has become much smoother in recent years.
The Good Neighbor Next Door Program offers a 50% discount on homes in revitalization areas for teachers, firefighters, EMTs, and law enforcement officers. While available properties can be limited, I’ve seen incredible success stories—including a kindergarten teacher client who purchased a home in El Sereno for half its market value through this program.
Profession-Specific Programs That Are Often Overlooked
California values its essential workers, and several programs reflect this priority:
The Extra Credit Teacher Home Purchase Program (ECTP) has been revamped for 2025, offering school employees (not just teachers, but also administrators, staff, and district employees) deferred-payment loans up to $15,000.
The Hometown Heroes Housing Program has expanded beyond healthcare workers to include grocery store employees, transit workers, and childcare providers. This program offers below-market rate loans and down payment assistance up to $25,000 depending on the county.
I recently worked with an ER nurse who had been renting in Eagle Rock for years. She qualified for both the Hometown Heroes program and a local hospital employee incentive, which together provided nearly $40,000 in assistance. After years of thinking homeownership was impossible on her salary, she now owns a condo just minutes from her workplace.
Common Misconceptions About California First-Time Buyer Programs
Let me clear up some misconceptions I hear almost daily in my office:
“I make too much money to qualify for assistance.” Not necessarily true! Many California programs have surprisingly high income limits, especially in high-cost counties. A family of four in Los Angeles County can make up to $180,000 and still qualify for certain programs in 2025.
“These programs are only for cheap homes in undesirable areas.” The purchase price limits have increased substantially. In Los Angeles County, for example, the CalHFA limit is now $850,000 for a single-family home—which opens up many desirable neighborhoods.
“The application process takes too long in competitive markets.” While this was true years ago, many programs have streamlined their processes. Several now offer pre-approvals that sellers view almost as favorably as conventional loan pre-approvals.
“You need perfect credit.” Most programs accept credit scores as low as 660, and some have options for buyers with scores as low as 620.
One client came to me convinced she wouldn’t qualify for any assistance because of a credit issue from three years ago. After reviewing her situation, we found she qualified for three different programs! She’s now happily settled in a townhome in Alhambra that she purchased with significant assistance.
Regional Variations: Finding the Right Program for Your Target Area
California’s real estate market varies dramatically by region, and so do the assistance programs available. Here’s a quick breakdown of what’s working best in different areas:
Bay Area: The high cost of housing here means you’ll want to look at programs with the highest purchase price limits. The Bay Area Workforce Housing Program has been expanded for 2025 and offers shared equity loans up to $200,000.
Los Angeles County: Combining the County’s HOME Program with state resources often works best. Also, don’t overlook neighborhood-specific programs in places like Boyle Heights and Leimert Park that target community revitalization.
Central Valley: The Rural Housing Loan Program offers 100% financing in many Central Valley communities, making it possible to buy with literally zero down payment.
Inland Empire: Several cities in Riverside and San Bernardino counties have particularly generous first-time buyer programs with lower income restrictions than coastal areas. The Riverside County First-Time Home Buyer Program now offers up to $75,000 in assistance.
San Diego: The San Diego Housing Commission continues to offer their first-time homebuyer assistance, which can be layered with CalHFA programs for maximum benefit.
I’ve sold homes from Ventura down to San Diego and as far east as Palm Springs, and I can tell you that understanding these regional differences is crucial. A program that’s perfect for a buyer in Sylmar might be completely wrong for someone looking in Temecula.
My Personal Advice for California First-Time Buyers in 2025
After two decades watching California’s housing cycles, here’s what I’m telling my clients in 2025:
- Get pre-approved for both conventional financing AND assistance programs. This gives you the most flexibility when making offers.
- Consider accepting a slightly higher interest rate if it comes with substantial down payment assistance. You can always refinance later, but getting in the door with less cash is often the bigger challenge in California.
- Look beyond the most popular neighborhoods. Some of the best values and most generous local assistance programs are in up-and-coming areas. I’ve seen tremendous appreciation in neighborhoods that were overlooked just 5 years ago.
- Don’t wait for “perfect” market conditions. California real estate has historically appreciated over time despite temporary dips. Building equity sooner rather than later has benefited most of my clients.
- Work with professionals who understand these programs. Not all lenders are experienced with every assistance option, and not all real estate agents know how to structure offers when using these programs.
My wife Elena and I still remember using a first-time buyer program to purchase our starter home near Old Town Pasadena years ago. That initial boost helped us build the equity that eventually allowed us to move to our current home. These programs aren’t just financial assistance—they’re the first step in building generational wealth.
The California dream of homeownership is still achievable in 2025, even with our challenging market. The key is knowing which doors are open to you and having the right guidance to walk through them. Whether you’re looking at a condo in Long Beach or a single-family home in Sacramento, there’s likely a program designed to help you get there.
