Special Report: Compiled by MFN Realty & AI!
MFN Realty is providing information only!
Grants or Down Payment Assistance Helps in Buying a Home!
Please Note: Some programs in this report may be paused at the time you read it, so verify with a mortgage lender if that program is active.
Special MFN Realty Disclaimer: MFN Realty is a firm that researches the Internet and AI to bring out clients cutting edge information. We cannot guarantee the total accuracy of statements by AI. Also, information provided is for general educational purposes only and is not an offer to provide, arrange, or negotiate financing. I am a California‑licensed real estate broker and not a mortgage lender or mortgage loan originator. For details about any assistance programs or loan options, please consult a licensed mortgage professional or the official administering agency. We at MFN Realty can refer you to a good lender who is able to discuss these with you.
Greg Nichols
916-580-7235
MFN Realty
DRE #00632894
About Grants
While buyers often use the word "grant" to mean any free or assisted money, there is a major technical difference between a **true grant** (which never has to be paid back) and **down payment assistance (DPA)** (which are usually deferred or "silent second" loans).
1. Special Homebuyer Grants (No Repayment Required)
True grants are rare, but they are incredibly powerful because they do not add to the buyer's debt load. The Grant Programs are less common and less available than Down Payment Assistance Programs.
GSFA Platinum Program (Grant Option)
What it is: The Golden State Finance Authority (GSFA) offers a true gift grant of up to 5% of the total loan amount.
How it works: It can be used for either the down payment or closing costs. Because it is a grant, it does not create a second lien on the property and does not require repayment.
Eligibility: It is flexible and works with FHA, VA, USDA, and conventional loans. It is not strictly limited to first-time buyers, though income limits apply based on the county and loan type.
* Ask your home lender about these programs and whether they are currently available.
Grant Websites for Home Buyers to Research or Apply:
https://www.usgrants.org/california/housing-grants
https://www.hcd.ca.gov/grants-and-funding
2. Down Payment Assistance Programs (Deferred Loans)
These programs provide upfront cash, but they are structured as subordinate loans. They generally do not require monthly payments, but they must be settled when the home is sold, refinanced, or paid off.
CalHFA MyHome Assistance Program
What it is: A deferred-payment junior loan from the California Housing Finance Agency.
The Structure: Offers up to 3.5% (for FHA) or 3% (for conventional loans) of the purchase price or appraised value to use toward a down payment or closing costs.
The Catch: Payments are deferred until the first mortgage is paid in full, or the home is sold or refinanced.
Bonus Layering: Can be paired with the CalHFA Zero Interest Program (ZIP), which provides additional zero-interest loans specifically for closing costs.
CalHome Program (via SHRA)
What it is: A local program administered by the Sacramento Housing and Redevelopment Agency (SHRA) specifically for the City and County of Sacramento.
The Structure: Provides a "silent second" loan of up to 20% of the purchase price (capped at $40,000).
The Catch: It accrues 3% simple interest, but all principal and interest payments are entirely deferred for the 30-year life of the loan. Buyers must be low-income (80% or below Area Median Income) and purchasing a home below the county median price cap.
PLHA First-Time Homebuyer Program
What it is: Another local option managed by SHRA using Permanent Local Housing Allocation state funds.
The Structure: Similar to the CalHome program, it provides deferred mortgage and down payment assistance tailored specifically for low-income buyers within Sacramento county lines.
GSFA OpenDoors Program
What it is: A secondary program from GSFA providing up to 5.5% of the loan amount.
The Structure: Structured as a 30-year deferred second loan with no monthly payments. It features more forgiving and flexible income limits than state agency programs, making it easier for moderate-income buyers to qualify.
* Ask your home lender about these programs and whether they are currently available.
Quick Reference Comparison
| Program | Type | Max Assistance Amount | Repayment Terms |
|---|---|---|---|
| GSFA Platinum | True Grant | Up to 5% of loan amount | None (Forgiven immediately) |
| CalHFA MyHome | Deferred Loan | 3% to 3.5% of purchase price | Due upon sale, refinance, or payoff |
| SHRA CalHome | Deferred Loan | 20% of price (Max $40,000) | 3% simple interest, deferred for 30 years |
| GSFA OpenDoors | Deferred Loan | Up to 5.5% of loan amount | Due upon sale or refinance |
Please Note: On the "Dream For All" Program: About the highly publicized *CalHFA Dream For All Shared Appreciation Loan,* (which offers up to 20% down), keep in mind that it operates on a strict, randomized voucher lottery system. The portal windows open and close incredibly fast, and funds are tied up quickly, so relying on it for active, immediate house hunting can be tough.
Please Note: To find out of you are qualified for down payment assistance, you will need to get with a loan officer who is specifically registered as an **approved lender** with CalHFA, GSFA, and SHRA, as these funds cannot be accessed through standard direct consumer channels.
