CalHFA Down Payment Assistance California 2026 — Complete Guide
Everything California home buyers need to know about CalHFA down payment assistance in 2026 — MyHome program details, income limits, how to combine with FHA, and Kern County eligibility.
Alfonso Garza
Licensed Mortgage Broker · NMLS #1708922 · Dream House Lending
For many California buyers, the down payment is the single biggest obstacle between renting and owning. CalHFA — the California Housing Finance Agency — exists specifically to solve that problem. In 2026, CalHFA continues to offer some of the most generous down payment assistance programs in the country, and Kern County buyers are fully eligible. In this guide, we'll break down exactly how the programs work, who qualifies, and how to use them alongside an FHA loan to dramatically reduce your upfront costs.
What Is CalHFA?
The California Housing Finance Agency (CalHFA) is a self-supporting state agency that provides below-market interest rate financing and down payment assistance to first-time home buyers in California. CalHFA doesn't lend money directly — instead, it works through a network of approved lenders and mortgage brokers (like Dream House Lending) to deliver these programs to eligible buyers.
CalHFA offers two main types of assistance: first mortgage programs (the primary loan you use to buy the home) and junior loan programs (a second loan that covers your down payment or closing costs). The most popular combination in 2026 is the CalHFA FHA first mortgage paired with the MyHome Assistance Program — a structure that allows qualified buyers to purchase a home with little to no money out of pocket.
The CalHFA MyHome Assistance Program
MyHome is CalHFA's flagship down payment assistance product. It's a deferred-payment junior loan — meaning you don't make monthly payments on it — that covers up to 3.5% of the purchase price or appraised value (whichever is less). The loan is repaid when you sell, refinance, or transfer the property.
- Assistance amount: Up to 3.5% of purchase price (enough to cover the entire FHA down payment requirement)
- Loan type: Silent second — no monthly payments while you live in the home
- Repayment: Due when you sell, refinance, or pay off the first mortgage
- Interest rate: Set at the same rate as your CalHFA first mortgage
- Can be combined with: CalHFA FHA, CalHFA Conventional, or CalPLUS programs
CalHFA Income Limits for Kern County in 2026
CalHFA programs are income-restricted, meaning your household income must fall below a certain threshold to qualify. Income limits vary by county and are updated periodically. For Kern County in 2026, the income limits for CalHFA programs are generally set between $150,000 and $195,000 depending on the specific program and household size. These limits are more generous than many buyers expect — a dual-income household earning a combined $140,000 may still qualify.
Income is calculated based on all borrowers listed on the loan, using gross annual income before deductions. Non-borrowing household members' income is not counted. We'll run a full income analysis at no charge before you apply so you know exactly where you stand.
Purchase Price Limits
In addition to income limits, CalHFA programs have maximum purchase price limits. For Kern County in 2026, the maximum sales price for CalHFA-eligible properties is aligned with the county's FHA loan limits — approximately $524,225 for a single-family home. Given that Bakersfield's median home price sits well below this ceiling, most properties in the area are eligible.
Who Qualifies for CalHFA?
CalHFA programs are designed for first-time home buyers, which CalHFA defines as anyone who has not owned and occupied their primary residence in the past three years. This means that even if you owned a home years ago, you may still qualify as a first-time buyer under this definition.
- Must be a first-time home buyer (no ownership in primary residence in past 3 years)
- Must complete a CalHFA-approved homebuyer education course (8 hours)
- Must meet income and purchase price limits for Kern County
- Must intend to occupy the property as a primary residence
- Must qualify for a CalHFA first mortgage (minimum 640 credit score for most programs)
- Must work with a CalHFA-approved lender or broker
How CalHFA Works With an FHA Loan
The most common CalHFA structure for Bakersfield buyers combines the CalHFA FHA first mortgage with the MyHome Assistance Program. Here's how it works in practice:
- 1You apply for a CalHFA FHA first mortgage through an approved lender. The rate is set by CalHFA and is typically competitive with market rates.
- 2You simultaneously apply for the MyHome junior loan, which covers up to 3.5% of the purchase price.
- 3At closing, the MyHome funds are applied toward your down payment, effectively covering the FHA minimum requirement.
- 4You make monthly payments only on the first mortgage — the MyHome loan is deferred until you sell or refinance.
- 5You move in having paid minimal out-of-pocket costs — often just closing costs and prepaid items.
CalPLUS — Closing Cost Help Too
If you need help with closing costs in addition to the down payment, the CalHFA CalPLUS program is worth exploring. CalPLUS pairs a first mortgage with the ZIP Extra program, which provides a deferred-payment loan of 2–3% of the loan amount specifically for closing costs. When combined with MyHome, CalPLUS borrowers can often close on a home with very little — sometimes zero — cash out of pocket.
The Homebuyer Education Requirement
All CalHFA borrowers must complete a HUD-approved homebuyer education course before closing. The course is available online through providers like eHome America or Framework and takes approximately 8 hours to complete. It covers budgeting, the mortgage process, homeownership responsibilities, and how to avoid predatory lending. The cost is typically $75–$99. This is not a hurdle — it's genuinely useful content that helps buyers feel prepared and confident going into the process.
Common Questions About CalHFA in Kern County
Can I use CalHFA if I'm not a first-time buyer?
CalHFA programs are reserved for first-time buyers, defined as not having owned a primary residence in the past 3 years. If you owned a home more than 3 years ago, you may still qualify.
Does CalHFA cover the entire down payment?
The MyHome program covers up to 3.5% of the purchase price — which is exactly the FHA minimum down payment. For most Bakersfield buyers, this means the down payment is fully covered.
How long does CalHFA approval take?
CalHFA loans typically follow the same timeline as standard FHA loans — 21–30 days to close. The added layer of CalHFA review is built into the process and doesn't significantly extend the timeline when your file is complete.
Can I use CalHFA with a seller concession?
Yes. Sellers can contribute up to 6% toward closing costs on FHA loans. Combining a seller concession with CalHFA's closing cost assistance can often result in zero cash needed at closing.
Is CalHFA Right for You?
If you're a first-time buyer in Kern County with a 640+ credit score and household income under $175,000, CalHFA should absolutely be part of your conversation with your mortgage broker. It's one of the most powerful tools available to California buyers, and it's consistently underutilized because buyers simply don't know it exists. At Dream House Lending, we're CalHFA-approved and have helped Bakersfield families use these programs to close on homes with minimal out-of-pocket cost.
Questions? Let's Talk.
Get straight answers from a licensed mortgage broker who works the Bakersfield market every day — no pressure, no obligation.
Alfonso Garza · NMLS #1708922 · Dream House Lending NMLS #2269316
Licensed by the CA DFPI #60DBO-154707