California buyer guide
Is There a Zero-Down FHA Loan in California?
The short answer
FHA generally requires a 3.5% down payment in California, but eligible assistance can supply that investment, making your own down payment zero. Closing costs can still be due, and a second loan may have to be repaid. VA financing may offer eligible borrowers a loan with no down payment built in (HUD, FHA Myths v Facts, checked October 30, 2026).
Justin Borges of The Borges Real Estate Team at eXp Realty (DRE #01940318, (213) 262-5092) helps Los Angeles buyers compare options and write offers. FHA generally requires a down payment, which an eligible assistance program can provide. Closing costs and any assistance repayment remain part of the decision.
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Text Justin your price range and the area you are searching; he can help you compare options and write an offer. Lenders and program administrators decide eligibility. Register for more information or text Justin.
What does zero down mean for an FHA loan?
FHA insures a mortgage made by a lender. The minimum required investment is generally 3.5% of the purchase price or applicable adjusted value, and acceptable sources can include gifts, grants and eligible second mortgages. An assistance program can provide that investment, but it does not erase FHA's requirement (HUD, FHA Myths v Facts, checked October 30, 2026).
For a Los Angeles buyer, the practical question is who supplies that money and what happens to it later. A grant, a deferred loan and a forgivable loan can all reduce your initial cash contribution while creating different obligations. Compare the repayment terms of each lien.
FHA eligibility and assistance eligibility are separate. A lender evaluates your credit, income, debts, property and proposed payment; an assistance provider can impose its own conditions. An advertised minimum down payment is not a promise that every applicant will qualify for that amount (HUD, Loans, checked October 30, 2026).
Check the loan amount against the local limit as well as your budget. HUD's 2026 FHA limit for a single-unit home in Los Angeles County is $1,249,125, as checked October 30, 2026. That is a loan limit, not a purchase-price ceiling (HUD, FHA Mortgage Limits lookup, checked October 30, 2026).
Even when assistance supplies it, FHA generally requires a 3.5% minimum investment (HUD, FHA Myths v Facts, checked October 30, 2026).
Have a question about your own situation? Text (213) 262-5092
How does Zillow down payment assistance work?
As of October 30, 2026, Zillow assistance is tied to a Zillow Home Loans FHA first mortgage (Zillow release, checked October 30, 2026). Its second mortgage is subject to forgiveness and repayment conditions (HousingWire, Zillow Home Loans launches FHA down payment assistance loan, checked October 30, 2026).
California is not on Zillow's excluded-state list, but neither published source names California as included, so eligibility must be confirmed. Zillow's release lists no income cap, and buyers still must qualify for the full monthly payment (Zillow Home Loans program page and release, checked October 30, 2026). Register for more information or ask Justin to compare your options.
The assistance covers the down payment, not closing costs (Zillow Home Loans program page, checked October 30, 2026).
Talk through your options
Text Justin your price range and the area you are searching; he can help you compare options and write an offer. Lenders and program administrators decide eligibility. Register for more information or text Justin.
Can CalHFA cover the FHA down payment?
CalHFA MyHome is a deferred loan with simple interest, not a forgivable loan, and requires a CalHFA first mortgage through an approved lender (CalHFA, MyHome Assistance Program Handbook, checked October 30, 2026). The published first-mortgage requirements suggest MyHome and Zillow assistance do not appear to combine; this is an inference (CalHFA, MyHome Assistance Program Handbook, checked October 30, 2026).
California Dream For All closed March 16, 2026; as of October 30, 2026, a future round could not be confirmed (CalHFA, California Dream For All, checked October 30, 2026).
What local help is available in Los Angeles?
City of Los Angeles LIPA and Los Angeles County's Home Ownership Program serve different geographic areas. County funding availability cannot be confirmed (Los Angeles County Development Authority, Home Ownership Program, checked October 30, 2026).
| Option | Where to start | Repayment question |
|---|---|---|
| Zillow assistance | Ask Justin to compare your options | What triggers repayment or forgiveness? |
| CalHFA MyHome | Compare an eligible CalHFA first mortgage | How much interest accrues before payoff? |
| City LIPA | Check whether the home is in the City of Los Angeles | How is shared appreciation calculated? |
| County HOP | Check the participating geography | When is the deferred loan due? |
As of October 30, 2026, LIPA requires at least 1% of the price from your own funds; its next listed reservation round is November 18, 2026, subject to change, and remaining funding cannot be confirmed (Los Angeles Housing Department, Helping Low-Income, First-Time Homebuyers, checked October 30, 2026).
Talk through your options
Text Justin your price range and the area you are searching; he can help you compare options and write an offer. Lenders and program administrators decide eligibility. Register for more information or text Justin.
Is a VA loan a true zero-down alternative?
A VA-backed purchase loan can offer eligible veterans and other eligible borrowers a loan with no down payment built into the financing, rather than an FHA down payment supplied by a second loan. VA says no down payment is often required when the sale price does not exceed the appraised value. You need a Certificate of Eligibility and must satisfy VA and lender requirements, including occupancy (VA, VA-backed purchase loan, checked October 30, 2026).
Zero down is not automatic for every VA borrower or every transaction. Remaining entitlement, the appraisal and lender approval can affect whether a down payment is needed. A Los Angeles buyer comparing VA with FHA should ask each lender to calculate the financing for the specific property and borrower.
VA loans can include a funding fee and other closing costs; some borrowers are exempt from the funding fee. Ask for the fee and any exemption to be reflected in your Loan Estimate, and compare total cash due and monthly costs with the FHA option (VA, VA funding fee and loan closing costs, checked October 30, 2026).
What does zero down cost over time?
Less cash at the start can leave you with a larger first mortgage than a purchase with more of your own down payment. The payment reflects the amount borrowed, interest rate, term and applicable mortgage insurance. Compare the actual written estimates rather than assuming that an assistance offer has a particular rate or fee.
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FHA mortgage insurance is separate from the assistance loan. HUD Mortgagee Letter 2023-05 lists an upfront premium of 1.75% of the base loan amount for forward purchase mortgages, as checked October 30, 2026. Annual premiums also apply and depend on the loan details. Confirm the actual charges and their duration on your Loan Estimate (HUD, Mortgagee Letter 2023-05, checked October 30, 2026).
For the second loan, compare more than the monthly payment. A deferred payment can be convenient now while leaving a balance to repay later; simple interest can increase that balance. A forgivable loan can reduce the eventual obligation if all conditions are met. Ask for payoff estimates at the points when you might sell or refinance, and check whether moving out changes the result.
| Compare | Question for each lender | Why it matters |
|---|---|---|
| Cash to close | What remains after assistance and credits? | You need available funds at settlement. |
| Monthly payment | What are principal, interest, insurance and estimated taxes? | Your budget must support the full payment. |
| Second loan | When is it due and does interest accrue? | A future payoff reduces sale proceeds. |
| Loan costs | What are the rate, points and lender charges? | The same down payment can produce different total costs. |
Use comparable Loan Estimates for the same Los Angeles property, purchase price and intended down payment. Review the cash-to-close, monthly payment, lender charges and mortgage insurance, then read each assistance agreement separately. Compare cash to close, monthly payments and any second-loan payoff together.
Talk through your options
Text Justin your price range and the area you are searching; he can help you compare options and write an offer. Lenders and program administrators decide eligibility. Register for more information or text Justin.
How much cash will you still need at closing?
Even when assistance covers the FHA minimum investment, you may owe closing costs and prepaid expenses. Your Loan Estimate and later Closing Disclosure show the lender's figures for the transaction. Ask your lender and escrow officer what funds are due, when they are due, and which items have already been paid outside closing.
Plan for appraisal and inspection expenses, lender and escrow charges, title-related charges, prepaid interest, insurance and any required tax or insurance reserves. The exact items depend on the property and loan. Some costs may be payable before closing, so a small final wire does not necessarily represent the entire cash you spent buying.
A seller credit may help with eligible closing costs if negotiated and allowed by the loan. HUD's published guidance limits interested-party contributions on an FHA purchase to 6% of the sales price, as checked October 30, 2026; a seller is not required to offer that amount (HUD, What costs can a seller or other interested party pay on behalf of the Borrower, checked October 30, 2026). Your lender and escrow officer can determine how an agreed credit applies to your actual charges.
Keep a reserve for ownership after escrow closes. A Los Angeles home may need insurance, maintenance or repairs that are separate from the loan's cash-to-close calculation. I can help you compare purchase options and write an offer that reflects your financing and cash position. Justin is a licensed real estate agent, not a lender.
Rather talk it through? Call (213) 262-5092
Frequently asked questions
Can I buy a California home with no money at all?
A covered down payment does not eliminate every purchase expense. Closing costs, prepaid insurance, inspections and other charges can still require cash. The precise amount depends on the loan, property, credits and expenses paid before closing. Keep funds available for ownership costs after you move in.
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Is down payment assistance always a grant?
No. Assistance can be a grant, a forgivable loan or a loan that must be repaid. CalHFA MyHome, for example, is a deferred loan with simple interest, while Zillow describes its assistance as a second mortgage with conditional forgiveness. Read the assistance documents for repayment triggers, interest and any occupancy requirements.
Does a lower appraisal change my cash requirement?
A lower appraisal can change your cash requirement because Zillow calculates assistance using the lesser of the purchase price or appraised value. Discuss the resulting cash figures and contract options with your representative.
Can a seller pay all my closing costs?
A seller can agree to an eligible credit, but the agreement and loan rules control its use. The amount is negotiable and cannot be assumed in advance. Ask your lender which costs the credit can cover, and have escrow reflect the agreed terms in the closing figures. Any remaining balance is your responsibility.
Should a veteran compare VA and FHA assistance?
A veteran who may qualify for a VA loan can ask lenders to prepare both options for the same purchase. Compare eligibility, cash at closing, monthly payments, mortgage insurance or funding fee, and any second loan repayment. A VA loan often permits no down payment, but appraisal, entitlement and lender requirements can affect the result.
Talk through your options
Text Justin your price range and the area you are searching; he can help you compare options and write an offer. Lenders and program administrators decide eligibility. Register for more information or text Justin.
Sources
- FHA Myths v Facts, HUD, June 2025 (hud.gov). Checked October 30, 2026.
- Loans, HUD (hud.gov). Checked October 30, 2026.
- FHA Mortgage Limits lookup, HUD, CY2026 (entp.hud.gov). Checked October 30, 2026.
- Zillow Home Loans launches FHA down payment assistance loan, HousingWire (housingwire.com). Checked October 30, 2026.
- MyHome Assistance Program Handbook, CalHFA, Oct 19, 2026 (calhfa.ca.gov). Checked October 30, 2026.
- California Dream For All, CalHFA, read Oct 30, 2026 (calhfa.ca.gov). Checked October 30, 2026.
- Home Ownership Program, LACDA, read Oct 30, 2026 (lacda.org). Checked October 30, 2026.
- Helping Low-Income, First-Time Homebuyers, LAHD, Sept 23, 2026 (housing.lacity.gov). Checked October 30, 2026.
- VA-backed purchase loan, VA.gov. Checked October 30, 2026.
- VA funding fee and loan closing costs, VA.gov, Oct 5, 2026. Checked October 30, 2026.
- Mortgagee Letter 2023-05, HUD, ML 2023-05 (hud.gov). Checked October 30, 2026.
- What costs can a seller or other interested party pay on behalf of the Borrower, HUD Handbook 4000.1 (answers.hud.gov). Checked October 30, 2026.
About the author
Justin Borges
REALTOR® | CA DRE #01940318
Justin writes LA Metro Home Finder’s guides to 30+ communities across the San Gabriel Valley, Northeast LA, and greater Los Angeles, and has closed $200M+ in career sales with a 106% average list-to-sale ratio.
Justin has held an active California DRE salesperson license since October 2013. View Justin’s author profile.
This guide is educational and is not legal, tax, title, lending, or insurance advice. Contract forms, statutes, and lender rules change. Confirm the terms that apply to your sale with your escrow officer, title officer, lender, or a California real estate attorney.
