Best Loan Programs for This Situation
CalHFA's MyHome assistance is designed to pair with FHA. The subordinate DPA loan covers the 3.5% down payment, allowing qualified buyers to purchase with minimal cash at closing.
CalHFA offers conventional options under the MyHome program. May result in lower total monthly cost than FHA+DPA for buyers with 680+ credit.
VA borrowers typically don't need down payment assistance (VA is already $0 down). However, VA borrowers can still use CalHFA for closing cost assistance in some cases.
Saving for a down payment is the most common barrier between Bakersfield renters and homeownership. California's CalHFA (California Housing Finance Agency) programs address this directly through subordinate loans that cover down payment and sometimes closing costs, with no monthly payments and no repayment until the home is sold, refinanced, or paid off. These are not grants; the assistance is a silent second mortgage. But for buyers who can afford a monthly mortgage payment but cannot accumulate the lump-sum down payment, CalHFA can bridge the gap.
How CalHFA MyHome Assistance Works
The CalHFA MyHome Assistance Program provides a deferred-payment subordinate loan of up to 3.5% of the purchase price (or appraised value, whichever is lower) to cover the FHA down payment. A 'deferred' loan means no monthly payments are required: the balance accrues simple interest and is repaid in full when the home is sold, refinanced, or the first mortgage is paid off.
For example, on a $350,000 purchase, MyHome provides up to $12,250 toward the 3.5% FHA down payment. If you have some savings, you can put the MyHome funds toward closing costs instead and use your own savings for the down payment. The flexibility is part of what makes the program useful for different buyer situations.
Who Qualifies: First-Time Buyer Definition
CalHFA defines a first-time buyer as someone who has not owned and occupied a primary residence in the last three years. This means you can have owned a home in the past, sold it more than three years ago, and still qualify as a first-time buyer under CalHFA's definition.
All borrowers on the loan must meet the first-time buyer requirement. Income limits apply based on Kern County median income and vary by household size. CalHFA updates these limits annually. Dan checks current Kern County income limits before beginning a CalHFA application to confirm eligibility.
The Homebuyer Education Requirement
All CalHFA borrowers must complete a homebuyer education course before closing. CalHFA accepts courses from HUD-approved counseling agencies and online providers like eHome America and Framework. The course typically takes 6 to 8 hours online and covers budgeting, the purchase process, and long-term homeownership responsibilities.
Many CalHFA buyers take the course while their loan is in process. Dan provides the list of CalHFA-approved education providers at the start of the application so the requirement doesn't delay closing.
CalHFA Dream for All: The Shared Appreciation Program
California also periodically offers the Dream for All Shared Appreciation Loan, which provided up to 20% of the purchase price (up to $150,000) as a 0% interest loan repayable with a share of the home's appreciation when sold. Due to overwhelming demand and funding limitations, the Dream for All program has been paused at various points and has income and lottery-based application restrictions.
Dan monitors CalHFA program availability and can advise on whether Dream for All or other enhanced programs are accepting applications when you are ready to buy. The MyHome program is the reliable baseline; Dream for All is a higher-benefit option that requires timing.
CalHFA is underutilized by Bakersfield buyers who assume they don't qualify or that the assistance is too complicated. The income limits are not as low as people think, the program is straightforward when structured correctly, and the deferred payment feature means you're not adding to your monthly cost. The main discipline required is completing the homebuyer education course. Beyond that, I handle all of the CalHFA submission and documentation. It's worth a 10-minute phone call to see if it applies to you.
Want to find out if CalHFA down payment assistance can get you into a home in Bakersfield with less cash at closing?
Call Dan at (661) 342-9381. He'll review your income documentation and loan options in a free call.