Down Payment Assistance
For most first-time buyers the down payment is the obstacle, not the payment. Assistance programs exist for exactly that — a separate second mortgage that covers some or all of the down payment, sitting behind your first mortgage.
Available in California only. Investor and business-purpose lending nationwide. Owner-occupied home loans in California.
We place CalHFA and FHA assistance programs.
At a glance
- Structure
- A second mortgage
- The assistance
- Repayable
- Programs
- CalHFA and FHA
- Lender panel
- 20+
How the structure actually works
This is the part worth being precise about, because it is widely misunderstood.
An assistance program is a second loan, not a discount. You take a first mortgage in the normal way. The assistance is a separate second mortgage that funds the down payment. Two loans, two sets of terms.
Combined, the two can cover up to 100% of the purchase price for borrowers who qualify under an assistance program — a first mortgage plus a separate assistance second, not a single 100% loan — subject to program eligibility, availability and approval.
The assistance is repayable. Terms vary by program: some defer payments, some accrue, some are forgiven under conditions. What it is not, on any program we place, is free money. Read the second's terms as carefully as the first's.
Who this fits
You are a first-time buyer, or have not owned in the qualifying period
Your income supports the monthly payment but your savings do not cover the down payment
Your household income is within the program's limit
The purchase price is within the program's limit for the county
You will occupy the property
Who this does not fit
Your income exceeds the program limit. These are income-targeted programs and the limits are set by the program, not by us.
You are buying an investment property. Assistance programs are owner-occupancy only.
You need to close very quickly. A second layer of program approval adds time to the file. That is a real cost of using one.
You have the down payment already. A straightforward conventional file is simpler and usually cheaper.
You are buying outside California.
How qualification works
Two approvals rather than one: the first mortgage underwritten normally, and the assistance program assessed against its own income, price, occupancy and sometimes homebuyer-education requirements.
The first mortgage
Underwritten normally
The assistance program
Both have to land.
A file that clears the first mortgage can still fail the assistance criteria, and it is better to establish eligibility at the start than to discover it mid-escrow.
We are a brokered business and place the first mortgage from a panel of 20+ lenders, alongside the assistance program you qualify for.
Frequently Asked Questions
Is this free money?
No. The assistance is a second mortgage with its own terms. Some programs defer or forgive under specific conditions, and none of them simply hand over the down payment.
Can I really buy with nothing down?
For borrowers who qualify under an assistance program, the first mortgage and the assistance second together can cover up to 100% of the purchase price — subject to program eligibility, availability and approval. It is two loans, not one, and closing costs are a separate question from the down payment.
Which programs do you place?
CalHFA and FHA programs. Which one fits depends on your income, the county, and the first mortgage you are pairing it with.
What are the income limits?
Set by each program, varying by county and household size, and revised periodically. We check yours against the current figures rather than working from memory.
Do I have to be a first-time buyer?
Usually, though "first-time" generally means not having owned a home within a defined period rather than never having owned one.
Is there a homebuyer education requirement?
Several programs require a course. It is straightforward, and it is worth starting early because it can hold up a file at the end.
Can I combine assistance with an FHA loan?
Yes — that is a common pairing. See FHA Loans.
Does using assistance slow the purchase down?
It adds a second approval, so yes, generally. Build that into your expectations rather than your offer.
What happens to the second if I sell or refinance?
It is repaid, on the terms of that program. Establish those terms before you sign, not when you come to sell.
What happens next
You are here
Down Payment Assistance
A separate second mortgage that covers some or all of the down payment.
Request a Scenario Analysis
Send your household income, the county, and the price you are aiming at. Those three answers establish which assistance programs are open to you.
Nothing on this page or website constitutes an offer of credit, a rate quote, or a commitment to lend. All loans are arranged through third-party lenders and are subject to full application, credit approval, income/asset verification, property appraisal, and underwriting. Terms and availability are subject to change without notice. Loankey.io is a licensed real estate broker; loans are arranged, not made. Down payment assistance programs are third-party programs with their own eligibility rules, terms and availability, all of which are subject to change. Investor and business-purpose lending nationwide. Owner-occupied home loans in California.