A First-Time Homebuyer’s Guide to CalHFA Loans

For many first-time homebuyers, the idea of coming up with a down payment is what keeps homeownership feeling out of reach. There’s a common belief that you need years of savings or a large lump sum to get started. In reality, California offers programs specifically designed to help first-time buyers bridge that gap and many people don’t realize they may already be closer than they think.

Often, buyers are surprised to learn that down payment assistance programs can significantly reduce the upfront cost of buying a new home. One of the most impactful options available is through CalHFA, the California Housing Finance Agency.

CalHFA loans are designed to make the path to homeownership clearer, more approachable, and less intimidating, especially for buyers who are not sure where to begin.

Understanding CalHFA, Simply Explained

CalHFA offers mortgage programs for first-time homebuyers that can be paired with down payment and closing cost assistance. Rather than requiring buyers to save a large amount of cash before they even start looking, these programs help reduce the initial financial barrier so buyers can focus on finding the right home and planning for their future.

In many cases, the assistance is structured as a deferred loan. That means there are no monthly payments on the assistance portion while you live in the home. Repayment typically happens later, such as when you sell the home or refinance. For many buyers, this structure makes the idea of buying feel far more manageable and less overwhelming.

Five Important Questions to Ask About CalHFA Loans

One of the best ways to feel comfortable with any homebuying program is to ask the right questions early.

How much assistance may be available?

CalHFA programs often provide a percentage of the home’s purchase price that can be used toward the down payment or closing costs. Knowing this number upfront can quickly change how attainable buying a home feels.

What are the credit requirements?

Many first-time buyers assume they need perfect credit to qualify, but CalHFA programs are designed for real-world situations. While there are guidelines, many buyers qualify with solid credit histories that are not flawless. A CalHFA-approved lender can explain where you stand and what options may be available to you.

How is the assistance structured?

Unlike traditional loans, most CalHFA assistance does not add a second monthly payment. This allows buyers to keep their monthly housing costs predictable while still receiving help upfront.

Can CalHFA be used to buy a new home?

The answer is YES. Many homeowners have used CalHFA programs to purchase new, move-in ready homes. For first-time buyers, new homes can offer additional peace of mind through modern construction, energy efficiency, and builder warranties.

Where do I begin?

You don’t need to have everything figured out before starting. Speaking with a CalHFA-approved lender is often the first step. They can review your income, credit, and overall goals, then help you understand which programs may be a fit and what monthly payments could look like.

Why This Matters for First-Time Buyers

For many buyers, the biggest hurdle isn’t qualifying… it’s confidence. Programs like CalHFA are designed to replace uncertainty with education and guidance. When buyers understand their options and see a clear path forward, the process becomes far less intimidating.

Learning about down payment assistance often becomes the turning point where “someday” starts to feel like “now.”

Ready to keep learning? Start here with a glossary designed to help you understand the most important homebuying terms.

Quick First-Time Homebuyer Glossary: Terms You Should Know

Down Payment
The portion of the home price you pay upfront, separate from your mortgage.

Down Payment Assistance (DPA)
Funds provided through a program like CalHFA to help cover your down payment and sometimes closing costs.

Deferred Loan
A loan that doesn’t require monthly payments right away. Repayment happens later, usually when you sell or refinance.

First-Time Homebuyer
Typically defined as someone who hasn’t owned a home in the past three years.

Pre-Approval
A lender’s estimate of how much you may be able to borrow, based on your financial information.

Closing Costs
Fees associated with finalizing a home purchase, such as escrow, title, and loan costs.

Continue your research with more homebuying and homebuilding terms here. Glossary | Blue Mountain Communities

Take the Next Step with Confidence

If you’re curious about whether CalHFA could help you buy a new home, the next step doesn’t have to feel overwhelming. Blue Mountain Communities hosts homebuyer workshops where you can learn more about programs like CalHFA, ask questions, and connect with trusted lenders who can help you explore pre-approval options. Register with one of our new home communities to receive exclusive information and updates. Blue Mountain Communities, your California home builder

Homeownership may be closer than you think. Sometimes, it starts with simply learning what options already exist.