Many people may be hearing about the CalHFA MyHome Assistance Program for the first time. This program provides down payment assistance for first-time homebuyers in California, allowing them to receive up to 3.5% of the purchase price in the form of a subordinate loan that can be used for down payment or closing costs. The structure is advantageous because it is settled at the time of sale or refinancing, meaning there is no monthly repayment burden, but the requirements of a credit score between 660 and 680, completion of homebuyer education, and meeting income criteria can be burdensome.

The housing value in Torrance is $1,116,811 according to Zillow. Based on this price, the down payment calculations are as follows: 3.5% is $39,088, 5% is $55,841, 10% is $111,681, and 20% is $223,362.

Starting with 3.5% using CalHFA support significantly reduces cash burden, but the addition of a subordinate loan increases the combined loan-to-value ratio (CLTV), which may lead some lenders to require additional documentation. Conversely, putting down 20% eliminates PMI and simplifies the approval process, but it takes longer to save that amount of cash.

Among the cases I reviewed, there was one where a buyer combined a 3.5% FHA down payment with CalHFA MyHome, effectively eliminating the initial cash burden. However, such combinations may disqualify those who exceed the income limits, so dual-income households should first check the income limits.

The property tax rate is based on the average effective tax rate of 0.69% in Los Angeles County (propertytaxrates.org, based on 2026). However, if local bonds or special taxes are added, the tax rate may increase, so it is advisable to check the tax bill for each property.

Approval rates ultimately depend on credit scores and DTI. A credit score above 780 has a 30-year fixed rate of 6.59%, in the 760s it is 6.66%, in the 740s it is 6.75%, and in the 700s it is 6.91% (themortgagereports.com, based on July 2026). DTI is recommended to be below 43% for back-end and below 28% for front-end according to the Consumer Financial Protection Bureau.

Opening a new loan or changing jobs before closing can negatively affect approval, so it is best to avoid these actions. Conversely, obtaining pre-approval in advance and preparing income documentation reliably is a way to create favorable conditions.

In school districts where many Korean families gather, competition is fierce, and pre-approval letters are often required from the offer stage. While school ratings can be referenced from GreatSchools or Niche, boundaries change frequently, so it is advisable to check the assigned school for the specific address before purchasing.

If receiving support for part of the down payment from family while utilizing CalHFA, it is important to know that if a large amount appears in the bank statement, the lender may request proof of the source. It is better to prepare gift documentation well in advance of closing.

Among the cases I reviewed, there was one where a buyer considered both Torrance and nearby Redondo Beach, comparing property taxes and CalHFA income limits before deciding on Torrance. If the budget is the same, it seems practical to compare taxes and eligibility for assistance within the county.

Utilizing CalHFA with a low down payment allows for a quicker entry, but it is important to consider the burden of having a subordinate loan settled later. Conversely, taking the time to save for a 20% down payment simplifies the approval process and eliminates PMI, but it means a delayed market entry.

Whichever option is chosen, preparing to raise credit scores and lower DTI is necessary for both. Avoiding new loans or job changes before closing and obtaining pre-approval in advance will benefit both options.

This information is not investment or legal advice, and it is recommended to consult with a mortgage professional before making any actual contracts.