Updated: July 2026 | Source: CalHFA.ca.gov · FHFA · HUD · Freddie Mac PMMS

California Home Loans 2026 — Complete Guide

From 3.5% down FHA to $150,000 in state down payment assistance — here is what home buyers in California can access in 2026.

California has some of the highest home prices in the country, but it also runs one of the most generous state down payment assistance systems through CalHFA. This guide covers loan limits, current rates, property tax, and every CalHFA program available to general buyers this year.

$904,640

CA median home price (June 2026)

6.55%

Avg. 30-yr conventional rate

$150,000

Max CalHFA down payment help

$541K–$1.25M

2026 FHA/conforming limits by county

The number people miss: California's median home price makes a 20% down payment roughly $180,000. That is exactly why CalHFA exists — most buyers here use a Down Payment Assistance (DPA) program stacked on top of FHA, Conventional, VA, or USDA financing rather than saving the full down payment themselves.

California Down Payment Assistance — CalHFA Programs

The California Housing Finance Agency (CalHFA) runs several programs that pair with a first mortgage. These are "silent seconds" — deferred loans with no monthly payment, repaid when you sell, refinance, or pay off the first mortgage.

CalHFA Down Payment & Closing Cost Programs

MyHome Assistance (FHA)Up to 3.5% of purchase price

MyHome Assistance (Conventional)Up to 3% of purchase price

CalHFA ZIP (closing costs)Up to 2–3% of first mortgage, 0% interest

Dream For All Shared AppreciationUp to 20% / $150,000 max Lottery

Dream For All status check: The 2026 Dream For All application window closed March 16, 2026, and vouchers from the randomized drawing were released May 20, 2026. As of July 2026, a new application round has not been announced — verify current status at calhfa.ca.gov/dream before counting on this program.

MyHome and ZIP stay open year-round. Unlike Dream For All's lottery structure, MyHome Assistance and ZIP are bond-funded programs that do not run on short application windows, making them the more dependable option for most first-time buyers in 2026.

CalHFA Income Limits (2026)

Income limits are set per county and apply to qualifying income on the loan, effective June 30, 2026.

Area	2026 Income Limit
Most inland and rural counties	$192,000
Marin, Napa, San Francisco, San Mateo, Santa Clara	Up to $325,000
Dream For All (separate, lower table)	Verify at calhfa.ca.gov

Full county-by-county limits: verify at CalHFA.ca.gov. Combined household qualifying income must fall under the limit for the county you are purchasing in.

Current Rates

Product	Rate	Source
30-yr Conventional	6.55%	Freddie Mac PMMS, week of July 16, 2026
15-yr Fixed	5.93%	Freddie Mac PMMS, week of July 16, 2026
CalHFA first mortgages	Below market	Typically 0.25–0.50% under standard rates — confirm with a CalHFA-approved lender

2026 Loan Limits by County

Seven California counties — Los Angeles, Orange, San Francisco, San Mateo, Santa Clara, Alameda, and Marin — sit at the high-cost ceiling. Most other counties fall between the floor and ceiling based on local median home prices.

Loan Type	Floor (Standard Counties)	Ceiling (High-Cost Counties)
FHA	$541,287	$1,249,125
Conventional (Conforming)	$832,750	$1,249,125
VA	No county limit for buyers with full entitlement

Loan limits are set per county, not statewide. Verify your exact county limit at HUD.gov before house-hunting.

Property Tax in California

What Prop 13 Means for Buyers

Base rate1% of assessed value

Statewide average effective rate~0.71%

Annual increase cap (Prop 13)Max 2% per year on assessed value

Your assessed value resets to the purchase price when you buy, then increases by no more than 2% a year under Prop 13, regardless of how much the market value rises. Local bonds and parcel taxes (school bonds, Mello-Roos in some new developments) can push the effective rate above the 1% base — confirm the exact rate with the county assessor before making an offer.

Pick Your Loan Type

FHA3.5% down, flexible credit ConventionalSkip MIP with 20% down USDA$0 down in eligible areas VA$0 down for veterans

Try the Loan Calculator Compare FHA, Conventional, USDA & VA with California prices and current rates

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Are you a teacher, nurse, firefighter, police officer, veteran, or EMT? California runs additional hero-specific programs on top of the general CalHFA options covered here. Browse the Hero Home Loan Programs hub and select California for profession-specific stacking strategies.

Frequently Asked Questions

Do I have to be a first-time buyer to use CalHFA programs?

Most CalHFA programs, including MyHome and ZIP, require you to be a first-time homebuyer — defined as not having owned and occupied a home in the last 3 years. Dream For All additionally requires at least one borrower to be a first-generation homebuyer.

Can I combine MyHome with ZIP?

Yes. MyHome (down payment) and ZIP (closing costs) can be combined with the same CalPLUS first mortgage, letting you cover both the down payment and closing costs with minimal cash out of pocket.

Is Dream For All still accepting applications?

Not currently. The 2026 window closed March 16, 2026 and vouchers were released May 20, 2026. As of July 2026, CalHFA has not announced a new round — check calhfa.ca.gov/dream directly before planning around this program.

Does the down payment assistance have to be repaid?

Yes, but not monthly. MyHome and ZIP are deferred second loans repaid when you sell, refinance, or pay off your first mortgage. Dream For All is repaid with a share of the home's appreciation, not just the original amount.

Bottom Line: California's home prices make DPA the deciding factor for most buyers. MyHome and ZIP are the dependable year-round options; Dream For All offers by far the largest amount but depends on funding rounds that open and close unpredictably. Check current program status directly with CalHFA before you start house-hunting.

Disclaimer: This post is for informational purposes only and does not constitute financial, legal, or mortgage advice. Program terms, rates, income limits, and availability change frequently — verify all details directly with official program sources before making any financial decisions. StatewiseFinance is not affiliated with any government agency or lender listed in this post.