CalHFA MyHome Assistance Program

What Is the CalHFA MyHome Assistance Program?

The CalHFA MyHome Assistance Program is a state-backed second mortgage designed to help first-time homebuyers in California cover their down payment and closing costs. Administered by the California Housing Finance Agency (CalHFA), the program provides a deferred-payment junior loan of up to 3.5% of the purchase price or appraised value (whichever is less) when paired with an FHA first mortgage, or up to 3% when paired with a conventional, VA, or USDA first mortgage.

What makes the program stand out is its repayment structure. The MyHome loan is what the industry calls a “silent second” because there are no monthly payments. Instead, repayment is deferred until you sell the home, refinance the first mortgage, pay it off, or reach the end of the loan term. A low 1% simple interest rate accrues annually on the balance, but you do not pay that interest monthly. It is simply added to the total due at payoff. For buyers who can afford the monthly mortgage payment on their first loan but are short on upfront cash, this program fills a real gap.

To use the program, you apply through a CalHFA-approved lender (like JVM Lending) and pair the MyHome second with a CalHFA first mortgage. The combined loan-to-value cannot exceed 105%. While the first mortgage rate through CalHFA may be slightly higher than a standard conventional or FHA loan, the trade-off is meaningful: you reduce or eliminate the cash needed at closing and keep your monthly payment limited to the first mortgage only.

Key Benefits

Reduce Your Out-of-Pocket Costs at Closing

The biggest barrier for most first-time buyers in California is not the monthly payment. It is the upfront cash required to close. MyHome covers the down payment, closing costs, or a combination of both, so buyers can purchase a home without spending years saving for a large lump sum.

No Monthly Payment on the Assistance

Unlike a traditional second mortgage or home equity loan, the MyHome loan requires no monthly payment for as long as you own and live in the home. The assistance sits quietly behind your first mortgage and only comes due when the home is sold, refinanced, or paid in full. This keeps your housing costs limited to the first mortgage payment, taxes, and insurance.

Flexible First Mortgage Pairing

MyHome works with all CalHFA first mortgage types, including FHA, conventional, VA, and USDA loans. This flexibility means borrowers can choose the first mortgage program that best fits their credit, income, and property situation, and still receive the down payment assistance.

Stackable with Other Assistance Programs

The MyHome loan can be combined with other CalHFA subordinate programs (like the Zero Interest Program for closing costs) and certain local assistance programs, as long as MyHome stays in second lien position. This layering can significantly increase the total assistance available, sometimes covering nearly all out-of-pocket costs.

Program Details at a Glance

Things to Know Before You Apply

CalHFA-approved lender required. CalHFA does not lend directly to consumers. You must work with a CalHFA-approved lender to originate both the first mortgage and the MyHome second. If your current lender is not CalHFA-approved, they cannot offer this program. JVM Lending is a CalHFA-approved lender and can walk you through the full process.

First-time homebuyer requirement applies.

You must meet CalHFA’s definition of a first-time homebuyer, which means you have not owned and occupied a primary residence in the past three years. If you currently own a home or have owned one recently, you will not qualify for MyHome specifically, though other CalHFA first mortgage products may still be available without the MyHome second.

Homebuyer education is mandatory.

At least one occupying borrower must complete an approved homebuyer education and counseling course. The only accepted online course is eHome’s eight-hour program (approximately $100). In-person or virtual courses through NeighborWorks America or a HUD-approved counseling agency also qualify.

Rates on the first mortgage may be slightly higher.

Because the first mortgage is originated through CalHFA’s bond-funded program, the interest rate may be modestly higher than what you would see on a standard conventional or FHA loan without assistance. That said, a slightly higher rate is not automatically a bad thing if it means you can buy now instead of spending another year or two saving for a down payment. The cost of waiting, both in rising home prices and ongoing rent, often outweighs the rate difference.

This is a loan, not a grant.

The MyHome assistance must be repaid. While there are no monthly payments, the principal plus accrued interest is due when you sell, refinance, or reach the end of the loan term. Plan accordingly if you anticipate selling or refinancing within a few years.

Who Is This Loan Best For?

• First-time homebuyers in California who can afford a monthly mortgage payment but are short on the upfront cash needed for a down payment and closing costs.
• Buyers who want to get into a home now rather than spending several more years saving, especially in a market where prices and rents continue to climb.
• Borrowers who qualify for FHA, conventional, VA, or USDA financing and want to reduce or eliminate out-of-pocket closing costs.
• Buyers who plan to stay in the home long-term, since the deferred repayment structure is most beneficial when you are not planning to sell or refinance quickly.

Alternatives to CalHFA MyHome

CalHFA Dream For All Shared Appreciation Loan.

This program provides 20% of the purchase price for down payment and closing costs with no monthly payments. However, it requires repayment of the loan amount plus 15-20% of the home’s appreciation when you sell or refinance. Funding is limited and distributed through a lottery system.

FHA loan without down payment assistance.

If you have at least 3.5% saved for a down payment, a standard FHA loan through JVM may offer a lower interest rate and a faster closing timeline (as quick as 14 days) compared to a CalHFA-paired FHA loan. You skip the CalHFA requirements but cover the down payment yourself.

Conventional loan with low down payment.

Conventional financing is available with as little as 3% down. For buyers with strong credit, the rate and mortgage insurance costs may be more favorable than a CalHFA-paired loan. This is a good option if you have a small down payment saved but do not need the full closing cost assistance MyHome provides.

Frequently Asked Questions

Is CalHFA MyHome a grant or a loan?

It is a loan. While there are no monthly payments, the balance plus accrued interest must be repaid when you sell the home, refinance, or reach the end of the loan term. It is not forgiven or written off over time.

How much can I receive through MyHome?

Up to 3.5% of the purchase price or appraised value (whichever is less) when paired with a CalHFA FHA first mortgage, or up to 3% when paired with a CalHFA conventional, VA, or USDA first mortgage.

Can I use MyHome for closing costs instead of the down payment?

Yes. The funds can be applied to the down payment, closing costs, or a combination of both. You choose how to allocate the assistance based on your needs.

What happens if I refinance my first mortgage?

Refinancing the first mortgage triggers repayment of the MyHome second, including principal and accrued interest. If you are considering a future refinance, factor the MyHome payoff into your planning.

Can I combine MyHome with the CalHFA Zero Interest Program (ZIP)?

Yes. When paired with a CalPLUS first mortgage, you can layer MyHome with ZIP to cover both the down payment and closing costs. Keep in mind that CalPLUS loans carry a slightly higher interest rate to accommodate the ZIP benefit.

Do I need to be a U.S. citizen?

You must be a U.S. citizen or a qualified alien as defined by CalHFA guidelines. Check with your lender for specific documentation requirements.

How long does it take to close with CalHFA MyHome?

CalHFA loans typically require a longer closing timeline than standard financing. Expect approximately 25 to 30 days, compared to 14 days for a standard conventional or FHA loan without down payment assistance.

Is CalHFA MyHome Right for You?

For California first-time buyers who need help with upfront costs, the MyHome Assistance Program is one of the most practical options available. It reduces the cash you need at closing, keeps your monthly payment manageable, and can be combined with other programs for maximum benefit.

The best way to find out if you qualify is to talk to one of our mortgage experts at JVM Lending. We are a CalHFA-approved lender and can help you compare MyHome with other programs to find the best fit. Contact us today at (855) 855-4491 or hello@jvmlending.com for a free consultation.