Down Payment Assistance (DPA)

DreamBuilder Program: A Path for First-Time Homebuyers

The DreamBuilder Program is a unique homeownership solution designed to help first-time homebuyers move into their own home, even if traditional financing isn’t an option yet. This innovative program combines a lease-to-own structure with government-backed support, allowing renters or buyers with limited credit or down payment funds to start building equity right away.

Why DreamBuilder? The most flexible program for first timers!

Low down payment options: Get into a home with minimal upfront costs.

Flexible credit and income requirements: Alternative documentation options, including bank statements and 1099 income, make it easier to qualify.

Build equity while you lease: Live in your home and gradually accumulate ownership, preparing for a traditional mortgage when you’re ready.

Accessible to a wide range of buyers: U.S. citizens, permanent residents, and some non-permanent residents can participate.

How It Works

Select your dream home: Choose a property that fits your needs.

Program purchase: A government-backed entity acquires the home, and you enter as a tenant with a path to ownership.

Live and build equity: Make lease payments while gradually gaining ownership rights.

Transition to full ownership: Once ready, convert your lease into a traditional mortgage or assume the loan, becoming a full homeowner.

The DreamBuilder Program is perfect for first-time buyers who want a practical, flexible way to achieve homeownership without waiting years to save for a large down payment.

CalHFA Down Payment Assistance: Helping First-Time Homebuyers

The CalHFA Down Payment Assistance Program is designed to make homeownership more accessible for first-time buyers in California. By providing financial support for down payments and closing costs, CalHFA helps new homeowners step into their dream home without the stress of large upfront expenses.

Benefits of CalHFA Down Payment Assistance

Low or zero down payment options: Depending on your eligibility, you can receive assistance to cover part or all of your down payment.

Reduced closing costs: Grants or forgivable loans can help offset the upfront costs of buying a home.

Flexible eligibility: Designed for first-time buyers, but certain programs also allow repeat buyers who meet income and purchase price limits.

Combined with CalHFA mortgage programs: Assistance works seamlessly with CalHFA first mortgage loans, making the process easier and more affordable.

How It Works

Pre-qualification: Determine your eligibility based on income, location, and first-time buyer status.

Select your home: Find a property that fits your needs and budget.

Apply for assistance: CalHFA provides down payment and/or closing cost support through a grant or second loan.

Become a homeowner: Use your CalHFA first mortgage along with the assistance to purchase your home with confidence. The CalHFA Down Payment Assistance Program is perfect for California first-time homebuyers looking to reduce upfront costs and make homeownership more attainable.

MIPA & LIPA Programs

Supporting First-Time Homebuyers California offers several programs to help first-time homebuyers achieve homeownership, including the MIPA (Mortgage Credit Certificate Program) and LIPA (Low-Income Purchase Assistance Program).

These programs are designed to reduce monthly mortgage costs and make homeownership more attainable for buyers with limited income.

Mortgage Credit Certificate (MIPA)

Program: The MIPA program provides eligible first-time buyers with a federal tax credit that reduces the amount of federal income tax owed each year. This effectively increases your monthly income, making mortgage payments more affordable.

Key Benefits:

Federal tax credit: Claim a percentage of your annual mortgage interest paid.

Lower monthly payments: The tax savings can be applied toward your mortgage, helping with affordability.

First-time buyer eligibility: Typically designed for first-time homebuyers meeting income and purchase price limits.

Low-Income Purchase Assistance (LIPA)

Program: The LIPA program provides financial assistance—often in the form of a grant or forgivable loan—to help cover down payments and closing costs for qualified low-income buyers.

Key Benefits:

Down payment and closing cost assistance: Reduces upfront costs to make buying a home feasible.

Forgivable loans: In many cases, the loan is forgiven if you remain in the home for a set period.

Support for low-income buyers: Helps bridge the gap between rent and homeownership affordability.

How They Work Together: Many first-time buyers combine MIPA tax credits with LIPA down payment assistance to reduce both monthly payments and upfront costs. Working with an experienced mortgage professional ensures you can leverage both programs effectively and maximize your homebuying benefits.