What Down Payment Assistance Programs Are Available in Pasadena?
Justin Borges, REALTOR® | DRE #01940318 · 9 min read
In This Guide
Pasadena's median home price has been running above $1.3 million in 2026, with entry-level single-family homes in Bungalow Heaven, Madison Heights, East Pasadena, and Lamanda Park listing in the $850,000 to $1.1 million range. A 20% down payment on a $900,000 home means coming up with $180,000 in cash before closing costs. That number ends a lot of conversations before they start.
What I tell my buyers, and what most buyers do not hear from the internet: Pasadena has access to some of the most generous down payment assistance programs in California. The CalHFA income limit for LA County sits at approximately $211,000, which is well above what most working professionals and dual-income households in the SGV actually earn. LACDA programs add county-level depth. Dream For All, when the lottery opens, can contribute up to $150,000. Veterans have CalVet. Teachers and first responders have CalHERO.
The gap between what buyers think they can do and what they can actually do with these programs is enormous. In my 13 years covering Pasadena and the broader San Gabriel Valley, I have helped first-time buyers close using combinations of these programs that brought their cash-to-close to a fraction of what they expected. This guide covers every major program in detail, including eligibility rules, income limits, repayment structures, and how to stack programs for the best outcome.
Program ComparisonWhat Down Payment Assistance Programs Are Available in Pasadena?
The table below covers the four primary programs most Pasadena first-time buyers can access. Detailed explanations for each program, plus Dream For All, CalVet, and CalHERO, follow in the sections below. All income limits shown are for Los Angeles County and are updated annually; verify current figures at CalHFA.ca.gov and LACDA.org before applying (California Housing Finance Agency, 2026; LACDA, 2026).
| Program | Max Assistance | Income Limit (LA County) | Property Type | First-Time Buyer Required |
|---|---|---|---|---|
| CalHFA MyHome | 3% of purchase price (deferred loan) | ~$211,000 | SFR, Condo, PUD | Yes (no ownership in past 3 years) |
| CalHFA ZIP | 3% of first mortgage (closing costs) | ~$211,000 | SFR, Condo, PUD | Yes (no ownership in past 3 years) |
| LACDA HOP80 | Up to $100,000 or 20% of price | 80% AMI (approx. $82,500, family of 4) | SFR only | Yes (no ownership in past 3 years) |
| LACDA HOP120 | Up to $85,000 or 20% of price | 120% AMI (approx. $124,000, family of 4) | SFR only | Yes (no ownership in past 3 years) |
Note on the AMI figures: the HUD-published Area Median Income for the Los Angeles metropolitan area is updated each spring by the U.S. Department of Housing and Urban Development (HUD, 2026). The 80% and 120% AMI thresholds shown above are estimates based on the most recently available data and will vary by household size. A family of two will have a lower limit than a family of four. Always confirm the current income limit for your specific household size before assuming you do or do not qualify.
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Reserve Your Free SeatState ProgramsCalHFA MyHome and ZIP: How They Work
The California Housing Finance Agency (CalHFA) administers two programs that are designed to function together: the MyHome Assistance Program and the Zero Interest Program (ZIP). MyHome targets the down payment. ZIP targets closing costs. Used together on a CalHFA-backed FHA loan, they can bring your total out-of-pocket cash requirement close to zero on a qualifying property in Pasadena.
CalHFA MyHome provides a deferred payment junior loan equal to 3% of the purchase price or the appraised value, whichever is lower. There is no monthly payment on the MyHome loan. The balance comes due only when you sell the home, refinance the first mortgage, or pay off and transfer title. On a $900,000 home in East Pasadena, MyHome contributes $27,000 toward your down payment with no carrying cost until you exit the property. The loan is recorded as a second lien on the property, junior to your first mortgage (California Housing Finance Agency, CalHFA.ca.gov, 2026).
CalHFA ZIP (Zero Interest Program) works identically but covers closing costs rather than the down payment. It provides a deferred junior loan equal to 3% of your first mortgage amount, at 0% interest, with no monthly payment. On a $900,000 purchase using an FHA first mortgage, ZIP could contribute roughly $24,000 to $27,000 toward lender fees, title, escrow, and prepaid items. In Pasadena, total closing costs typically run 2% to 3.5% of the purchase price, so ZIP often covers them entirely.
To qualify for any CalHFA program, you must meet the following criteria as published by the California Housing Finance Agency (CalHFA, 2026): you must be a first-time homebuyer, defined as not having owned or occupied a primary residence in the past three years; the property must be your primary residence; the property must be located in California; your household income must fall within the program income limit for your county and household size. For Los Angeles County, the 2026 income limit is approximately $211,000 for most CalHFA programs.
CalHFA also requires completion of a homebuyer education course from a HUD-approved housing counselor before closing. Courses are available online through providers including Framework Homeownership and eHome America. The typical time commitment is four to eight hours, and the cost ranges from $50 to $125. Your completion certificate is valid for two years from the date you finish the course.
"MyHome and ZIP together are the most underused tools for Pasadena buyers. The income limit is $211,000. A lot of people who think they earn too much to qualify actually don't."
Justin Borges, REALTOR® | DRE #01940318 | eXp RealtyBrowse Pasadena homes priced within CalHFA and FHA loan limits. See what's active now.
Browse Pasadena HomesCounty ProgramsLACDA Home Ownership Programs: HOP80 and HOP120
The Los Angeles County Development Authority (LACDA) administers the Home Ownership Programs, referred to as HOP, through its housing division. These programs provide second mortgage loans to first-time buyers purchasing in eligible areas of Los Angeles County, including the city of Pasadena (LACDA, LACDA.org, 2026). LACDA loans carry 0% interest and no monthly payment, but they are structured as shared equity loans: when you sell the home, refinance, or the property is no longer your primary residence, you repay the original loan balance plus a proportional share of any appreciation. This distinguishes them from a simple deferred loan.
LACDA HOP80 is the larger of the two programs. It provides a second mortgage of up to $100,000, or 20% of the purchase price, whichever is less. Eligibility is limited to households earning at or below 80% of the Area Median Income for Los Angeles County, as published annually by HUD. For a family of four, 80% of the LA metro AMI is currently in the range of $82,000 to $85,000, depending on the year's updated figure. The property must be a single-family residence; condominiums and multi-unit properties are not eligible under this program.
LACDA HOP120 extends the program to a higher income tier, providing up to $85,000 (or 20% of the purchase price, whichever is less) to households earning at or below 120% of the Area Median Income. For a family of four, 120% AMI is approximately $124,000 to $128,000. This program is more accessible for the income profiles common among Pasadena's professional workforce, particularly buyers who earn too much for HOP80 but are still priced out of the market without assistance.
One practical note: LACDA program funding is finite. Both HOP80 and HOP120 are distributed on a first-come, first-served basis when the application window is open. There have been periods when both programs temporarily closed due to depleted funding. If LACDA assistance is part of your plan, contact the LACDA directly or ask your lender to check on current availability before building your offer strategy around it. Getting on the list early matters.
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Search All Pasadena ListingsProgram StackingHow to Combine Multiple DPA Programs in Pasadena
The most powerful strategy available to Pasadena first-time buyers is stacking: using multiple programs simultaneously to cover different parts of the transaction. CalHFA's MyHome and ZIP programs are the clearest example. They are explicitly designed to complement each other, with MyHome covering the down payment and ZIP covering closing costs. When properly structured on a CalHFA-backed FHA loan, this combination can dramatically reduce the cash you need to bring to closing.
Stacking Example: $880,000 Pasadena Home via FHA + CalHFA
This example is simplified. Actual costs depend on your lender's fees, the interest rate, Pasadena property taxes ($880,000 x 1.25% = approximately $11,000 per year), prepaid interest, and homeowners insurance. But the structural point is valid: MyHome and ZIP stacked together on an FHA loan can bring your total cash requirement to a small fraction of what it would be otherwise. The key is finding a CalHFA-approved lender who knows how to originate both simultaneously and structure the loan to meet CalHFA's underwriting guidelines.
LACDA and CalHFA programs can sometimes be combined, creating an even more aggressive assistance structure. This requires a lender who can manage multiple junior liens and who is approved by both CalHFA and LACDA. It is not common, but it is possible. If you are in the LACDA income range and also qualify for CalHFA, it is worth asking your lender whether a combined structure makes sense for your purchase price and profile.
Additional ProgramsDream For All, CalVet, and CalHERO
Dream For All is a California state-funded shared appreciation loan that provides up to $150,000 toward the down payment on a home purchase. Unlike MyHome and ZIP, Dream For All is not a straightforward deferred loan: when you sell or refinance, you repay the original assistance amount plus a percentage of any appreciation the home gained during your ownership. The state shares in your upside in exchange for providing the large upfront contribution. The income limit for LA County is approximately $168,000 (California Housing Finance Agency, Dream For All Program, 2026).
Dream For All has historically operated as an annual lottery with a brief application window, typically opening in late winter or early spring and closing when the program's funding allocation is exhausted. In prior program years, the lottery window closed within two to four weeks. Applications submitted after funding runs out are not processed, regardless of eligibility. If Dream For All is part of your plan, register for notifications at CalHFA.ca.gov so you are ready to apply the moment the window opens. The program is worth waiting for if you are a strong candidate: $150,000 in assistance is material at Pasadena price points.
CalVet provides below-market-rate mortgage financing to California veterans, active-duty service members, and certain reserve members, administered directly by the California Department of Veterans Affairs (CalVet.ca.gov, 2026). CalVet is not a down payment assistance program in the traditional sense. It is a primary mortgage product that, when combined with a VA loan entitlement, can require as little as 0% down payment. There is no first-time buyer requirement for CalVet. If you served in the U.S. military, you should explore CalVet before any other program in this guide. I have closed VA-backed purchases in Pasadena where the buyer brought zero to closing and the seller covered closing costs through negotiation.
CalHERO is a private program offered by Patriot Pacific Financial Corporation (NMLS #1921615, CA DRE #02103516). It is not a state agency program. CalHERO is designed for teachers, firefighters, law enforcement officers, military personnel, healthcare workers, and other community heroes. Eligibility is based on your employer category, not income limits. CalHERO can offer reduced lender fees and competitive rates, and in some loan configurations includes down payment assistance. Because it is a private lender product, not a state program, terms vary and should be confirmed directly with Patriot Pacific before building them into your plan.
Step by StepHow to Apply for Down Payment Assistance in Pasadena
Down payment assistance is not a separate application you file on your own. It runs through your lender alongside your primary mortgage. Here is how the process works from beginning to close:
- Check your income against program limits. Compare your household gross income (before taxes) to the income limits for each program you are considering. CalHFA limits for LA County are published at CalHFA.ca.gov. LACDA limits are at LACDA.org. HUD's Area Median Income for the LA metro is updated each spring and is the baseline for LACDA's 80% and 120% AMI thresholds (U.S. Department of Housing and Urban Development, HUD.gov, 2026). Income limits vary by household size, so look at the row that matches your household, not just the overall number.
- Complete a homebuyer education course. CalHFA and most DPA programs require a completion certificate from a HUD-approved housing counselor before you close. Take the course early in your process, not right before closing. Online providers include Framework Homeownership and eHome America. Budget four to eight hours and $50 to $125. The certificate is valid for two years, so you can take it before you start your search.
- Find a CalHFA-approved lender. The approved lender list is available at CalHFA.ca.gov. Call before you assume any lender qualifies. If you want to stack CalHFA and LACDA programs, ask specifically whether the lender can originate LACDA second mortgages as well. Not all can. This is one place where having a buyers agent who knows the local lending landscape is worth a lot.
- Get pre-approved and map your program options. Your lender will review your income, credit, and asset documentation and run your profile through each program's eligibility criteria. They will determine which programs you qualify for and how to structure the stack. You should leave the pre-approval meeting knowing exactly which programs are on the table, how much each contributes, and what your projected cash-to-close looks like.
- Identify a qualifying property. Most DPA programs require the property to be your primary residence. The 2026 FHA loan limit for LA County is $1,149,825 (Federal Housing Administration, FHA.gov, 2026). Most CalHFA programs are compatible with properties up to that limit. LACDA is restricted to single-family residences. If you are looking at a condo in South Lake or a townhome near the Caltech corridor, confirm LACDA eligibility before including it in your plan.
- Submit the combined application and close. Your lender submits the primary mortgage and the DPA applications together. The programs are reviewed in parallel, not sequentially. At closing, the assistance funds are disbursed alongside your loan proceeds and applied to your down payment and closing costs. You sign for all loans in the same signing appointment and leave with keys and a property free of any monthly obligation on the DPA portion.
The escrow timeline for a DPA purchase in Pasadena is typically 30 to 45 days, which is standard. DPA does not significantly extend the process when your lender has experience with these programs. Sellers in Pasadena are generally comfortable receiving offers from buyers using DPA programs. In competitive multiple-offer situations, a clean pre-approval letter matters more than the source of your down payment funds.
From the FieldWhat My Buyers Actually Use
In my 13 years covering Pasadena and the SGV, CalHFA MyHome and ZIP stacked on an FHA loan is the combination I help buyers execute most often. The $211,000 income limit captures a large share of working professionals and dual-income households in this market. Many of the people I work with have solid incomes but limited savings because they have been paying high rents in the San Gabriel Valley for years. That is exactly the buyer profile these programs are designed for.
LACDA programs come up most often with buyers whose household income is genuinely below 80% or 120% AMI, often single buyers or couples in the early stages of their careers. The $100,000 from HOP80 is meaningful at these income levels and can make the difference between qualifying and not qualifying on a specific property. The shared appreciation structure is a reasonable trade-off when the alternative is renting indefinitely.
Dream For All is the program I receive the most inbound questions about, and also the one where I manage expectations most carefully. When it is open, it is worth pursuing aggressively, particularly if your income is below $168,000. When it is not open, you plan around it rather than waiting for it. I do not advise clients to put their search on hold until the Dream For All window opens because the market does not pause for program timing.
"I have had buyers close on Pasadena homes using FHA at 3.5% down, covered almost entirely by MyHome and ZIP, with closing costs covered by ZIP, and the seller contributing to prepaids. The out-of-pocket number surprised all of them."
Justin Borges, REALTOR® | DRE #01940318 | eXp RealtyVeterans always lead with CalVet. The combination of VA entitlement and CalVet's state-backed financing is the most favorable structure available in California for eligible buyers. I have closed several VA purchases in Pasadena, including a Craftsman in Lamanda Park where the buyer came in at $0 down and the seller covered all closing costs through a negotiated credit. No DPA program beats that outcome for a veteran.
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Get My Free Home ValuationFrequently Asked Questions
What down payment assistance programs are available in Pasadena?
Pasadena buyers can access CalHFA MyHome (3% of purchase price as a deferred junior loan), CalHFA ZIP (3% of first mortgage for closing costs), LACDA HOP80 (up to $100,000 as a shared equity loan), LACDA HOP120 (up to $85,000), Dream For All (up to $150,000 when the annual lottery is active), CalVet for veterans, and CalHERO for teachers and first responders. Multiple programs can be stacked when eligibility and lender capabilities align.
How much can I get in down payment assistance in Pasadena?
Total assistance depends on which programs you qualify for and whether you stack them. CalHFA MyHome provides 3% of the purchase price; on a $900,000 home, that is $27,000. LACDA HOP80 can contribute up to $100,000. Dream For All can contribute up to $150,000 when the lottery is open. In the right configuration, a buyer can cover the entire FHA down payment and most closing costs through stacked DPA programs.
Can I combine multiple down payment assistance programs in Pasadena?
Yes. CalHFA MyHome and ZIP are designed to be used together; MyHome covers the down payment and ZIP covers closing costs. LACDA programs can sometimes be stacked with CalHFA programs as well, though this requires a lender approved by both agencies who has experience managing multiple junior liens. Ask your lender explicitly about stacking before you start your search so you have a complete picture of your options.
Do I have to repay down payment assistance?
Most programs covered here are deferred or shared equity loans, not outright grants. CalHFA MyHome and ZIP carry no monthly payment but come due when you sell, refinance, or transfer title. LACDA HOP loans are shared equity: you repay the principal plus a portion of the home's appreciation at exit. Dream For All also uses a shared appreciation structure. None of these require monthly payments, but they are not free. The trade-off is deferred cost in exchange for homeownership now.
What income limit applies for CalHFA programs in Pasadena?
The 2026 CalHFA income limit for Los Angeles County is approximately $211,000 for most programs. LACDA HOP80 uses 80% of the HUD Area Median Income (approximately $82,500 for a family of four) and HOP120 uses 120% of AMI (approximately $124,000 for a family of four). These limits are updated annually by HUD. Verify current figures at CalHFA.ca.gov and LACDA.org for your specific household size before applying.
Can I use down payment assistance if I have owned a home before?
Most DPA programs define "first-time buyer" as not having owned or occupied a primary residence in the past three years. If you owned a home more than three years ago and have been renting since, you may qualify. CalVet does not require first-time buyer status at all. CalHERO eligibility is based on your employer category, not ownership history. A CalHFA-approved lender can confirm whether you qualify based on your specific situation.
Quick Reference: DPA Programs for Pasadena Buyers
| Your Situation | Best Program | Where to Start |
|---|---|---|
| Household income under $211K, need down payment | CalHFA MyHome + ZIP | CalHFA-approved lender |
| Income at or below 80% AMI (~$82,500/family of 4) | LACDA HOP80 (up to $100K) | LACDA.org or lender |
| Income between 80% and 120% AMI | LACDA HOP120 (up to $85K) | LACDA.org or lender |
| Willing to share appreciation for max assistance | Dream For All (up to $150K, lottery-based) | CalHFA.ca.gov for alerts |
| Military veteran or active duty | CalVet + VA loan (0% down possible) | CalVet.ca.gov |
| Teacher, firefighter, nurse, law enforcement | CalHERO (private program) | Patriot Pacific Financial |
| Maximize assistance, cover down + closing costs | Stack MyHome + ZIP (+ LACDA if eligible) | Specialist CalHFA lender |
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Justin Borges serves buyers and sellers across Pasadena and the San Gabriel Valley. CA DRE #01940318.
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