Can You Buy a House With No Money Down in California?
Yes. You can buy a house with no money down in California through three routes: a VA loan at 0% down for veterans and active-duty service members, a USDA loan at 0% down for homes in eligible rural areas (subject to household income limits), or down payment assistance that covers your out-of-pocket cost, including CalHFA programs and the lender-paid forgivable grant A Good Lender offers on FHA and conventional loans. The catch is eligibility. VA needs military service, USDA needs a rural property and income under the area limit, and the assistance route needs you to qualify for the underlying loan. For most first-time buyers who are not veterans and not buying rural, the down payment assistance path is the one that applies.
See How Much You Qualify For Check your county’s limits and how much down payment assistance you can get. About 30 seconds, no signup required. Check Your County Limits →
I’ve been doing mortgages in California for over 30 years, and most first-time buyers have never heard that the down payment barrier has this many workarounds. If you’re paying $3,000 a month in rent but can’t scrape together enough for a down payment, you’re not alone. You can afford the monthly payment. What you can’t do is get past that initial $15,000 to $30,000 hurdle while you already hand three grand to a landlord every month. Compare renting vs buying to see the exact monthly costs. This guide walks through how to buy a home with no money down, program by program, so you can see which path fits.
What Zero Down Home Loans and No Down Payment Programs Are Available in California?
Two loans let you put nothing down, and a third path covers the down payment for you. VA loans give veterans and active-duty service members 0% down with no PMI. USDA loans give buyers in eligible rural areas 0% down, with household income limits around 115% of the area median. If neither fits, down payment assistance steps in: California zero down home loans through CalHFA, local city and county grants, and A Good Lender’s lender-paid forgivable grant that covers your full FHA or conventional down payment.
So can you buy a home with no down payment out of your own pocket? Yes, through one of these three paths. The point of these no down payment home loans and grants is the same. You get into the home without draining your savings for a down payment. Which one you use depends on your service history, where you’re buying, and whether you’d rather cover the down payment with a grant.
What Is California’s $0 Down Lender-Paid Grant?
It is a lender-paid grant that covers your 3.5% FHA down payment at closing, forgiven after six months. For FHA loans, the program caps at $832,750 loan amount (max sales price ~$863,000). Need to go higher? Use a conventional loan with 3% down, which goes up to your county’s conforming limit. The grant does not get recorded as a second mortgage on your property, and you don’t make any payments on it. Zero. No monthly bill, no interest accruing. It just sits there quietly for six months, and it’s truly $0 down from your pocket.
After 180 days, the whole thing gets forgiven provided your payments were made on time. You don’t pay it back. You don’t owe taxes on it. It’s just yours.
This is a lender-paid no down payment program, not a city or county government program. Compare that to other California financing options. CalHFA’s Forgivable Equity Builder makes you wait five years. Dream For All makes you pay back the money plus a chunk of your home’s appreciation when you sell. CalHFA MyHome? You have to pay the whole thing back eventually. Local city and county programs often have waitlists or lottery systems. This program is different. Six months and you’re completely done with it.
The only real requirements are that you work with A Good Lender, use it with an FHA loan, and actually live in the home for those six months. That’s the deal. Want to compare with other California assistance options?
What Are the Program Limits by County (2026)?
The grant covers your full down payment up to your county’s loan limit. For FHA loans (3.5% down), the program caps at $832,750 loan amount regardless of county, which means a max sales price of ~$863,000 and max grant of ~$30,205. For higher-priced homes, use a conventional loan (3% down) up to your county’s conforming limit.
| Loan Type | Max Loan Amount | Max Sales Price | Max Grant |
|---|---|---|---|
| FHA (3.5% down) | $832,750 | $863,005 | $30,205 |
| Conventional (standard county) | $832,750 | $858,505 | $25,755 |
| Conventional (high-cost county) | $1,249,125 | $1,287,758 | $38,633 |
High-cost counties (Los Angeles, Orange, San Francisco, Alameda, and more): Conforming limit $1,249,125 Mid-tier counties (San Diego $1,104,000, Monterey $994,750, Ventura $1,035,000) Standard counties (most Central Valley, rural): Conforming limit $832,750
Check your specific county’s limits at agoodlender.com/no-down-payment-program-in-california.
Who Qualifies for No Money Down Home Loans in California?
If you can qualify for an FHA loan or conventional loan, you can qualify for the lender-paid grant. That’s it. So when someone asks can you buy a house with no down payment without a special program, the honest answer is that you qualify the same way you would for any FHA or conventional loan.
There’s no special first-time buyer requirement, no income caps, no homebuyer education course for this no money down program. Standard mortgage qualification rules apply. Credit score, income verification, debt-to-income ratio. Same stuff we check for any home loan.
The main thing to know is the FHA route caps at $832,750 loan amount (max grant ~$30,205). For higher-priced homes, use a conventional loan. In high-cost counties like Los Angeles, Orange County, and Alameda, you can receive up to $38,633 (3% of $1,287,758 max sales price). Check your specific county’s limits at agoodlender.com/no-down-payment-program-in-california.
The other requirement is living in the home as your primary residence for at least six months. That’s when the assistance gets forgiven. After that, you’re free to sell, refinance, or stay put.
How Does 0% Down Payment Assistance Work at Closing?
At closing, we pay your down payment directly at the closing table as a credit. On a $450,000 purchase, that credit is $15,750 against your down payment requirement. You make no payments on it. There’s no interest. It just sits there while you live in the home and make your regular FHA mortgage payments, and after 180 days the whole thing gets automatically forgiven.
The complete zero down payment process: Get preapproved → Find your home → Close with A Good Lender assistance → Live 6 months for full grant forgiveness
How Does a $450,000 No Money Down Purchase in Sacramento Actually Work?
Here’s a worked example with actual figures. You’re buying a $450,000 house in Sacramento.
How Much Down Payment Is Required?
The down payment requirement with an FHA loan is 3.5%, which equals $15,750. We pay all of it through this program. Your down payment? $0.
What Are the Costs?
With no down payment required, you still need closing costs, which typically run about $8,000 to $10,000. This is where you can get creative. There are three common ways to cover them.
Negotiate Seller Credits
Seller credits are significant. You can negotiate up to 6% of the price, which on a $450,000 house works out to $27,000. What you can realistically get, and it will be ample to cover your $10,000 in closing costs, is between 3% and 4% from the sellers.
Use Family Gift Funds
If you have family members who can help, FHA permits gift money from family. All you need is a gift letter. So if your parents can afford to kick in $5,000, that already takes care of half your closing expenses.
Accept Lender Credits
Another option is lender credits. You accept a slightly higher interest rate in exchange for a credit toward your closing costs. This raises your monthly payment a little, but it means less out-of-pocket money up front.
How Do You Combine Strategies to Minimize Out-of-Pocket Costs for Zero Down?
Most people mix and match these approaches. Maybe you get seller credits to cover most of it, then a small gift from family covers the rest. So you walk into closing with perhaps $3,000 to $5,000 out of pocket. And if you’ve already got that in savings while you’re renting, you can afford to buy a house.
Calculate Your Zero Down Payment Scenario See how much lender assistance you’d get for a home in your county. No signup required. Use Free Calculator →
Where Do No Money Down Home Loans Work Best in California?
The lender-paid grant is available statewide through A Good Lender, and it covers all 58 California counties. Prices vary by region. Here’s how three of them look.
How Does This Work in the Central Valley?
In Fresno, Bakersfield, and Stockton, median prices sit around $350,000 to $500,000. Our contribution toward closing costs and your 3.5% down payment applies to most homes in these areas. USDA rural loans and 0 down payment homes are also easiest to find here.
How Does This Apply in Los Angeles?
Look at areas like the San Fernando Valley, the Inland Empire, and East County San Diego, where $400,000 to $550,000 homes are common. The full 3.5% down payment gets covered.
How Does This Work in the Bay Area?
Prices run higher, but the program still covers your full down payment. On a $700,000 home within the FHA max of ~$863,000, we pay the full $24,500 down payment (3.5%). For homes above $863,000, use conventional financing with 3% down.
Next Steps to Buy a House With No Money Down in California
Here’s what you actually do to use the program.
First, check your county’s loan limits. Go to agoodlender.com/no-down-payment-program-in-california and punch in your county. You’ll see your FHA limit, conventional limit, and how much down payment assistance you’re eligible for. Takes maybe 30 seconds.
Second, get preapproved with A Good Lender. We offer this program. You’ll provide income documentation, get your credit pulled, and verify your employment. Standard preapproval. The preapproval letter should specifically mention the down payment assistance so sellers and agents know you’re serious.
After that? Find a home, make an offer, close on it. We pay your down payment at closing. After six months, it’s completely forgiven. That’s the whole process.
If you’ve been stuck renting because you can’t save for a down payment while handing three grand to a landlord, this no money down program is how you get out. Check your numbers and get moving.
Related Down Payment Assistance Programs
Looking for other ways to cover your down payment? California offers several additional programs worth exploring:
- The Elite Grant in California is a private lender grant with 6-36 month rapid forgiveness.
- CalHFA Programs offer state-backed down payment assistance with longer forgiveness timelines.
- Local DPA Programs are city and county grants ($10K-$200K) from San Francisco, LA County, Orange County, and more.
- FHA Loans in California explains FHA financing and its low down payment requirements.
- Physician Mortgage Loans in California reach 100% financing with no PMI for doctors, dentists, pharmacists, and other medical professionals.
- Compare every option on the All Down Payment Assistance Programs hub.