Down payment assistance is real, availability swings by state and budget cycle, and most of it comes with a cost. Some states (Texas and Georgia among them) run hundreds of active programs. California cut most of its funding years ago, which leaves CalHFA as essentially the only active statewide option there. CalHFA's mechanics matter before you commit. It pairs with a conventional or FHA first mortgage, is originated through a participating broker or bank but underwritten and funded by CalHFA itself, and it carries a higher rate, a higher minimum credit score, tighter debt-to-income limits, and income caps compared with standard financing (confirm current requirements, since program terms change). The assistance usually arrives as a second mortgage of roughly 2 to 3 percent of the price, sometimes with a third on top. The upside is buying with little or nothing out of pocket. The trade-offs are real: - You can close near 102 to 103 percent loan-to-value, so a small dip in value leaves you underwater. - CalHFA has not been approving subordinations, so you cannot refinance the first mortgage later without paying off the seconds. - These files tend to close more slowly. In our own side-by-side comparisons, most buyers who can cover FHA's 3.5 percent minimum down themselves, using a seller or lender credit for closing costs, come out cheaper over the long run than with an HFA loan. But if assistance is the only way you can buy at all, we would rather see you own than sit out. Find a lender who actually knows your state's programs, and we are glad to run your specific numbers on the free Roadmap conversation.