A client tells you they can't buy because they don't have a down payment. They have decent income, decent credit, and about $12,000 saved. In most agents' hands that conversation ends there.
California runs several programs built for exactly that buyer. Most agents can't explain them, so they don't raise them — and the client keeps renting.
You don't need to be a lender to know these exist. You need to know enough to say "there's a program for this, let me connect you with someone who handles it."
The one everyone's heard of: Dream For All
CalHFA's Dream For All Shared Appreciation Loan provides down payment assistance in exchange for a share of future appreciation.
The trade: the assistance covers a portion of the purchase price as a silent second — no monthly payment, nothing due until you sell or refinance. At that point you repay the original amount plus a share of the appreciation.
That share is the part clients must understand before they sign. It is not interest. If the home rises $300,000 and the agreed share is 20%, $60,000 is owed on top of the original assistance.
That can still be a very good deal. It's the difference between owning and not owning, and the alternative is capturing 0% of appreciation as a renter. But a client who doesn't understand it will feel misled at closing, and they'll remember who explained it — or didn't.
⚠️ Funding is the real constraint. Dream For All has been dramatically oversubscribed since launch. CalHFA has used limited application windows and a voucher/lottery approach rather than first-come-first-served. Availability, income limits and the appreciation share have all changed between rounds. Never quote specifics from memory — check CalHFA's current program page, or ask a CalHFA-approved lender, before telling a client what's available.
The ones nobody mentions
Dream For All gets the headlines. These are often more available:
MyHome Assistance Program — a deferred-payment junior loan toward down payment and closing costs, used alongside a CalHFA first mortgage. Less publicised, generally more consistently funded.
CalPLUS with ZIP — a CalHFA first mortgage paired with a Zero Interest Program second that covers closing costs. Useful for the buyer who has some down payment but nothing left for costs.
Forgivable Equity Builder Loan — assistance that can be forgiven if the buyer stays in the home for the required period. When funded, this is the strongest of the set. Availability fluctuates.
City and county programs — Los Angeles, Long Beach, Santa Ana and many others run their own. These stack with state programs in some combinations and conflict in others. Your local housing department publishes current terms.
What actually disqualifies people
Save everyone time by knowing the usual gates:
- First-time buyer — generally no ownership interest in the last three years. Note: this often includes a spouse's ownership.
- Income limits by county — these are not low. In several California counties the limits sit well above six figures, so don't self-disqualify a client by assuming.
- Homebuyer education — a completed course is typically required. It takes a few hours online and clients routinely leave it to the last minute and delay closing.
- Owner occupancy — primary residence only.
- Property type limits — some programs restrict manufactured housing or units above a certain count.
How to use this without practising outside your licence
You are not originating the loan. Your job is to recognise the situation and route it.
"Your down payment is the gap, not your income or your credit — and there are state programs built for that. I'd rather you hear the current terms from someone who does these every week than from me. Let me introduce you to a CalHFA-approved lender."
Then make the introduction. Two things follow from that:
Build a real relationship with one or two CalHFA-approved lenders. Not every lender is approved, and not every approved lender is good at it. Find someone who closes these routinely and knows which programs are actually funded this month.
Start the education course early. It's the most common avoidable delay in these files.
The commercial case
The buyer who "can't afford to buy" is usually the buyer nobody else is working with. They convert slowly, they need more education, and they are far more loyal when someone finally takes them seriously.
They also tell people. An agent who got someone into a house they thought was out of reach gets referrals for years.
Our Dream For All calculator and program stack tool are on the consumer site — both are usable with a client on a call, and neither requires them to give up their contact details.
General information for licensed agents, not lending advice. CalHFA program terms, funding availability and income limits change frequently — sometimes within a single quarter. Always confirm current terms with CalHFA or an approved lender before a client relies on them.