CalHFA Loans in San Diego: Programs, Eligibility & How to Apply (2026)

What Are CalHFA Loans?

CalHFA — the California Housing Finance Agency — is a state agency that helps first-time homebuyers afford their first home. CalHFA is not a lender. Instead, it works through a network of approved private lenders across California to offer below-market-rate first mortgages and down payment assistance programs.

Think of CalHFA as a layer of help that sits on top of a traditional mortgage. You still apply through a local bank, credit union, or mortgage company. But instead of a standard loan, your lender originates a CalHFA-backed mortgage with more favorable terms, and you may qualify for additional assistance that covers part or all of your down payment and closing costs.

For San Diego first-time buyers, CalHFA programs can be the difference between renting for another few years and getting into a home now. The agency's down payment assistance — which can reach up to $150,000 through the Dream For All program — is particularly impactful in a high-cost market where saving for a down payment is one of the biggest barriers to homeownership.

CalHFA Programs Overview

CalHFA offers several programs that can be used individually or combined. Here are the main ones available to San Diego buyers:

CalHFA Dream For All Shared Appreciation Loan

Dream For All is CalHFA's most generous program. It provides a shared appreciation loan of up to 20% of the purchase price, capped at $150,000. This loan has no monthly payments and no interest. You repay it when you sell the home, refinance, or transfer the title — plus a share of any appreciation the home gains.

For example, if you buy a $750,000 home and receive $150,000 through Dream For All, you would owe the $150,000 plus 20% of the home's appreciation when you sell. If the home appreciates to $850,000 (a $100,000 gain), your repayment would be $150,000 plus $20,000, for a total of $170,000.

Dream For All has been extremely popular and funding rounds have historically run out within days. If you are interested, get pre-approved with a CalHFA lender ahead of time so you can apply the moment a new funding round opens.

CalHFA MyHome Assistance Program

MyHome provides a deferred-payment junior loan for down payment assistance. The amount depends on your first mortgage type:

• FHA first mortgage: up to 3.5% of the purchase price or appraised value (whichever is less)
• Conventional first mortgage: up to 3% of the purchase price or appraised value

The MyHome loan has a simple interest rate, but no monthly payments are required. It becomes due when you sell the home, refinance, pay off the first mortgage, or transfer the title. On a $750,000 home with a conventional first mortgage, MyHome could provide $22,500 toward your down payment.

CalHFA ZIP Extra

ZIP Extra (Zero Interest Program Extra) provides up to 4% of the first mortgage loan amount as a deferred-payment, zero-interest loan that can be used for closing costs. This program is designed to layer on top of a CalHFA first mortgage and MyHome assistance, covering the additional cash you would need to bring to closing.

Like MyHome, the ZIP Extra loan has no monthly payments and is repaid when you sell, refinance, or pay off the first mortgage.

CalHFA First Mortgage Products

CalHFA also offers its own first mortgage products at competitive rates. These include both conventional and FHA-based first mortgages that are designed to work with the assistance programs above. Your CalHFA-approved lender can help you determine which first mortgage type gives you the best overall pricing.

Income Limits in San Diego

CalHFA programs have income limits that vary by program and are based on the area median income (AMI) for San Diego County. Here are the general guidelines:

• Dream For All: Household income must not exceed 150% of AMI. For San Diego County, this is approximately $199,500 for a household of one to two people and higher for larger households. Check CalHFA's website for current figures.
• MyHome and ZIP Extra: Income limits are typically set at CalHFA's standard threshold, which varies by county. For San Diego, the limit is generally around $200,000 to $250,000 depending on household size and the specific program year.

These income limits are for your total household income, meaning all wage earners living in the home. CalHFA calculates this differently than your loan qualifying income — it includes income from people who may not be on the loan.

Income limits are updated periodically. Contact a CalHFA-approved lender for the most current figures, as the numbers above are estimates only.

How CalHFA Works with Your First Mortgage

CalHFA programs do not replace your mortgage — they supplement it. Here is how the pieces fit together:

1. First mortgage: This is your primary home loan, either a CalHFA conventional or CalHFA FHA product, originated through an approved lender.
2. Down payment assistance (MyHome or Dream For All): This is recorded as a second lien on your property. It covers part or all of your required down payment.
3. Closing cost assistance (ZIP Extra): This is recorded as a third lien. It covers your closing costs so you bring less cash to the table.

You make monthly payments only on the first mortgage. The assistance loans sit behind it silently, with no payments due until a repayment trigger event (sale, refinance, or payoff).

Example Scenario

Let's say you are buying a $750,000 home in San Diego using CalHFA programs with a conventional first mortgage:

• Purchase price: $750,000
• First mortgage (97% LTV): $727,500
• Down payment needed: $22,500 (3%)
• MyHome assistance: $22,500 (covers full 3% down payment)
• ZIP Extra: Up to $29,100 (4% of first mortgage, covers closing costs)
• Your out-of-pocket cost: Potentially very little, depending on actual closing costs

This is an estimate for illustration purposes. Your actual figures will depend on the purchase price, loan terms, and program availability at the time you apply.

Pros and Cons of CalHFA Programs

CalHFA vs. Other Down Payment Assistance Programs

CalHFA is not the only source of down payment assistance in San Diego. Here is how it compares to other options:

In many cases, you can combine CalHFA programs with other assistance. For example, you might use a CalHFA first mortgage with MyHome for your down payment, plus an SDHC grant for additional closing cost coverage. Not all combinations are allowed, so work with a knowledgeable lender who can map out the best stack for your situation.

How to Apply Through a Local Lender

You cannot apply for CalHFA programs directly through the state agency. All applications go through CalHFA-approved lenders. Here is how the process works:

1. Find a CalHFA-approved lender. CalHFA maintains a list of approved lenders on its website. Look for a lender in San Diego who has experience with CalHFA programs and processes a high volume of these loans — the application has extra steps that an experienced lender will handle more smoothly.
2. Complete homebuyer education. CalHFA requires all borrowers to complete an approved homebuyer education course before closing. These courses are available online and typically take about eight hours. The course costs around $99, though some nonprofits offer free options. Complete this early in the process so it does not delay your closing.
3. Get pre-approved. Your lender will review your income, credit, and debt-to-income ratio to determine which CalHFA programs you qualify for. Pre-approval also helps you understand your maximum purchase price.
4. Watch for Dream For All funding rounds. If you want Dream For All assistance, you need to be pre-approved and ready to act fast. Funding rounds have historically sold out in days. Your lender can alert you when a new round is announced.
5. Shop for your home. Once pre-approved, work with a real estate agent to find a home within your price range and the program's purchase price limits.
6. Submit your application. Your lender will package the CalHFA first mortgage and any assistance programs together into a single application. The process is similar to a standard mortgage but may take slightly longer due to the additional paperwork.
7. Close on your home. Expect closing to take 35 to 50 days. Your lender will coordinate with CalHFA to ensure all assistance funds are available at closing.

Frequently Asked Questions About CalHFA in San Diego

Ready to Explore CalHFA Programs in San Diego?

CalHFA programs can dramatically reduce the cash you need to buy your first home in San Diego. Whether you are interested in Dream For All's up to $150,000 in assistance, MyHome's deferred down payment loan, or ZIP Extra for closing costs, the first step is connecting with a CalHFA-approved lender who knows these programs inside and out.