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California ranks dead last — 50th out of 50 states — in how quickly it would take residents to save for a home down payment, according to data shared by Consumer Affairs in October 2025.
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In California, it would take 25.1 years to save a 10% down payment on a median-priced home.
For residents who don’t want to wait a quarter century to buy a home in Sacramento, California, there are a variety of down payment assistance programs that can help make homeownership possible much sooner.
Here are some of the most notable down payment assistance options available today:
- CalHFA’s Dream For All Shared Appreciation Loan
- CalHFA’s MyHome Assistance Program
- CalHFA’s Zero Interest Program (ZIP)
- SCU’s Workforce Initiative Subsidy for Homeownership (WISH) Program
In Sacramento, the path to homeownership is less a sprint and more a generational marathon.
A standard 20% down payment on a $480,000 home — the median sold price in May 2026, per Realtor — is just shy of $100,000. And that’s before closing costs, lending fees, home inspections and more.
These first-time homebuyer down payment assistance programs are a lifeline for Sacramento hopefuls.
CalHFA’s Dream For All Shared Appreciation Loan
The , offered by the California Housing Finance Agency, gives first-generation homebuyers up to 20% of the purchase price for down payment and/or closing costs.
CalHFA began accepting applications for assistance on February 24. Eligibility requirements include:
- Each borrower must be a first-time homebuyer.
- One borrower must be a first-generation homebuyer.
- One borrower must be a current resident of California.
- Sacramento borrowers must make no more than $191,000 per year.
- Borrowers must work with a CalHFA-approved lender.
- Borrowers must obtain a pre-approval letter before submitting an application.
“The California Dream For All program has already helped thousands of Californians buy their first home,” CalHFA Executive Director Tony Sertich said in the January 16 press release.
As loans are repaid, “the funds are reinvested into the program to create a cycle that will continue far into the future, planting the seeds of generational wealth to help keep the California dream alive,” he added.
CalHFA’s MyHome Assistance Program
The MyHome Assistance Program is a deferred-payment junior loan to help with down payment or closing costs. “Deferred” means you don’t make payments until you sell, refinance or pay off your first mortgage.
It offers up to 3.5% of the purchase price or appraised value (whichever is less) when paired with an FHA loan, or up to 3% if paired with a conventional loan. Interest rates vary depending on a variety of factors.
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Eligibility requirements include:
- Must be a first-time homebuyer (haven’t owned or occupied a home in three years).
- Must occupy the property as a primary residence; non-occupant co-borrowers are not allowed.
- Must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
- Sacramento borrowers must make no more than $239,000 per year.
- Must be a single-family, one-unit residence, including approved condominium/PUDs
CalHFA doesn’t lend directly. Instead, borrowers must apply through a CalHFA-approved loan officer. Make sure you have pay stubs, bank statements, employment history and previous tax returns ready.
CalHFA’s Zero Interest Program (ZIP)
The Zero Interest Program, also known as ZIP, is designed specifically to help first-time homebuyers cover closing costs — one of the most overlooked upfront expenses in the homebuying process.
It’s only available with CalPLUS and is a silent second loan for either 2% or 3% of the total first mortgage. The interest rate is zero percent (0.00%) and the payments are deferred for the life of the first mortgage.
The good news is that CalPLUS loans can be combined with the MyHome Assistance Program, meaning buyers can potentially stack both programs to cover down payment and closing costs at the same time.
The eligibility requirements are the same as the MyHome Assistance Program, meaning Sacramento borrowers must make no more than $239,000 per year and must work with a CalHFA-approved lender.
Sacramento Credit Union’s WISH Program
Sacramento Credit Union partners with the Federal Home Loan Bank of San Francisco (FHLB) to offer the Workforce Initiative Subsidy for Homeownership (WISH) Program for aspiring homeowners.
It provides 4-to-1 matching grants to assist with down payment and/or closing costs up to the annual maximum amount set by the Federal Housing Finance Agency, which is $32,837 for 2026.
Eligibility requirements include:
- Must meet the FHLB of San Francisco’s definition of a first-time homebuyer
- Must have a household income at or below 80% of the HUD area median income
- The home must be used as a primary residence
- The buyer must complete an approved homebuyer education course.
- The maximum eligible loan amount is $806,500.
The buyer’s contribution may come from household savings or gift funds, but funds from other down payment assistance grants or credits do not count toward the required contribution.
The grant may be forgiven after five years of continuous occupancy, per the Sacramento Credit Union.
Down payment assistance won’t be around forever. Funding runs out, income limits change and eligibility requirements shift. If any of these first-time homebuyer programs in Sacramento look like a fit, the next step is reaching out to a CalHFA-approved lender or Sacramento Credit Union to see where you stand.
This article was created by content specialists using various tools, including AI.
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