Introduction

Down Payment Assistance in Sacramento

Buying a home in Sacramento is still possible — even if saving for a down payment feels overwhelming. With rising home prices, many first-time buyers need help bridging the gap between what they can save and what homes cost today. That’s exactly where down payment assistance in Sacramento comes in.

These programs are designed to help everyday buyers — teachers, medical workers, families, and renters — get access to Sacramento down payment assistance so they can finally become homeowners without draining their savings.

Whether you need first-time buyer down payment help in Sacramento, help with closing costs, or even zero down payment Sacramento options, this guide breaks down the top programs that could save you thousands.

Best Down Payment Assistance Programs in Sacramento (2025)

Here are the top down payment programs Sacramento 2025 buyers rely on, including state, county, and local options.

1. CalHFA Down Payment Assistance Programs

CalHFA remains one of the most widely used Sacramento homebuyer assistance options.

MyHome Assistance Program

• Up to 3.5% of the purchase price

• Works with FHA and Conventional loans

• Can be used toward down payment or closing costs

This is ideal for buyers with limited savings but strong employment history.

CalPLUS With ZIP Second Loan

• Zero-interest second loan

• Helps cover closing costs

• Deferred until refinance or sale

This makes homeownership more accessible even if upfront costs are a challenge.

CalHFA Conventional & FHA

These provide competitive interest rates and lower mortgage insurance costs, making them perfect for first-time buyers.

2. Sacramento Housing & Redevelopment Agency (SHRA)

SHRA offers some of the strongest low-income homebuyer programs in Sacramento.

SHRA Down Payment Assistance

• Up to $50,000+ for eligible buyers

• Income-based assistance

• Deferred payment (no monthly payments)

• Can be combined with CalHFA

This program is extremely valuable for buyers who need both down payment and closing cost help in Sacramento.

3. Golden State Finance Authority (GSFA)

GSFA offers some of the most flexible programs — even repeat buyers may qualify.

GSFA Platinum Program

• Up to 5% assistance

• Forgivable after 3 years in many cases

• Used for down payment or closing costs

This is one of the few Sacramento down payment grants that can be forgiven.

GSFA OpenDoors Program

• Flexible credit requirements

• Works with FHA, VA, and Conventional loans

• Offers layered assistance

If you're searching for GSFA down payment programs, OpenDoors is a strong option.

4. City of Sacramento SHIP Program

The SHIP (Sacramento Homebuyer Incentive Program) provides:

• Down payment loans

• Closing cost support

• Competitive interest rates

• Income-based qualification

This program is especially popular among residents already living within city limits.

5. SACOG Regional Assistance Options

SACOG supports Sacramento down payment grants and buyer programs through partnerships with counties, nonprofits, and local lenders.

These aren’t always widely advertised, so working with a knowledgeable Sacramento lender helps uncover hidden opportunities.

Federal Programs That Provide Down Payment Help

Even if local programs don’t fit, federal mortgage options offer low or no down payment requirements:

FHA Loans

• Just 3.5% down

• Flexible credit requirements
  Popular with first-time buyer down payment help Sacramento seekers.

USDA Loans

• 0% down payment

• Only for eligible rural areas outside Sacramento

VA Loans

• 0% down for qualified veterans

• No mortgage insurance
  A top option for military families.

Fannie Mae HomeReady

• Low down payment

• Lower PMI

• Designed for first-time buyers

Freddie Mac Home Possible

• Low-income buyers qualify

• 3% down minimum

Who Qualifies for Down Payment Assistance in Sacramento?

Each program has its own guidelines, but most require:

First-Time Homebuyer Status

Typically defined as not owning a home in the last 3 years.

Income Limits

Programs like CalHFA, SHRA, GSFA, and SHIP have different limits depending on:

• Household size

• Program type

• Zip code

Credit Score Requirements

Most programs require:

• 620–660 minimum credit score
  Some GSFA and FHA options allow slightly lower.

Property Requirements

• Must be your primary residence

• Must fall within program-specific price limits

Homebuyer Education

Nearly all DPA programs require a first-time buyer education course before approval.

How to Apply for Down Payment Assistance

Here’s the simplest path to securing Sacramento mortgage assistance:

Step 1 — Check Income Limits

Confirm you qualify for the program you want.

Step 2 — Work With Approved Lenders

Not all lenders offer every program — especially SHRA or GSFA.

Step 3 — Complete Homebuyer Education

Often required before final approval.

Step 4 — Gather Documents

Prepare:

• Tax returns

• W-2s

• Pay stubs

• Bank statements

• ID

• Credit report

Step 5 — Apply for DPA + Mortgage Pre-Approval

Both are usually processed together.

How Much Down Payment Assistance Can You Get?

Depending on the program:

• 3%–5% is typical for Sacramento buyers

• GSFA offers forgivable assistance

• SHRA can exceed $50,000+

• CalHFA ZIP and MyHome cover down payment + closing costs

Some combinations allow nearly zero out-of-pocket costs.

Pros & Cons of Using Down Payment Assistance

Pros

• Lower upfront costs

• Keep your cash for emergencies

• More competitive offers

• Easier path to ownership

Cons

• Some programs add fees

• Certain loans may have higher interest rates

• Income limits may restrict eligibility

For most first-time buyers, the benefits outweigh the drawbacks.

Common Mistakes Buyers Make With DPA

Avoid these pitfalls:

• Not comparing programs

• Assuming all assistance is free

• Ignoring income guidelines

• Failing to use approved lenders

• Waiting too long in Sacramento’s competitive market

FAQ: Down Payment Assistance in Sacramento

Q1: What is the best down payment assistance program in Sacramento?
CalHFA, GSFA, and SHRA are the most widely used and offer the strongest benefits.

Q2: How much down payment help can I get in Sacramento?
Most buyers receive 3%–5%, though SHRA can offer significantly more.

Q3: Do I have to be a first-time buyer?
Many programs require it, but GSFA allows repeat buyers.

Q4: What credit score do I need?
Most Sacramento down payment assistance requires 620–660+.

Q5: Can DPA cover closing costs too?
Yes. Many programs allow funds to be used for both down payment and closing expenses.