Many people may be hearing the name CalHFA for the first time. To put it simply, it is a housing finance agency operated by the state of California, which has various programs to reduce the down payment burden for first-time homebuyers. Among these, the MyHome Assistance Program offers a second mortgage that provides up to 3.5% of the purchase price interest-free when used with government loans like FHA, and up to 3% with Conventional loans. Repayment is deferred until the home is sold or refinanced.

If you need a bit more assistance, there is also the Dream For All Shared Appreciation Loan. This program allows you to receive up to 20% of the purchase price, with a cap of $150,000, but you will need to share a portion of the appreciated value when you sell the home later. However, since applicants are selected by lottery rather than on a first-come, first-served basis, it cannot be guaranteed that you will receive it.

If the terminology is unfamiliar, think of it this way: both programs require you to be a first-time homebuyer, complete the educational courses required by CalHFA, and not exceed the income limits.

Let's also take a look at housing prices in Fullerton. According to Zillow, the housing value index for Fullerton is $916,245, which is a 4.0% decrease from a year ago. Based on this price range, a 3.5% down payment would require an initial fund of about $32,069.

Let's also review the basic conditions for the loans themselves. For FHA loans, a credit score of 580 or higher allows for a 3.5% down payment, while a score between 500 and 579 requires 10%. For Conventional loans, if the down payment is less than 20%, PMI (private mortgage insurance) will be added monthly, and it will be removed if the down payment is 20% or more. The interest rate is around 6.6% for a 30-year fixed mortgage based on Freddie Mac PMMS as of July 2026.

The property tax is about 0.71%, which is the average effective tax rate in California, but there can be differences depending on the property within Orange County, so please verify the actual tax rate. For school districts, refer to ratings from GreatSchools or Niche, but since boundaries change frequently, it is safer to check the schools assigned to the specific address before purchasing.

It is also good to be aware of the pre-approval process. Lenders will review recent income documentation, W-2s or tax returns, and bank statements to determine the loan limit, ensuring that the DTI, or debt-to-income ratio, does not exceed around 43%. If you want to use the CalHFA program, you must first check if the lender is on the approved list.

When making an offer, you will typically deposit 1% to 3% of the purchase price as earnest money. If the contract proceeds without issues, this amount will be applied to the down payment at closing. Closing costs include items such as appraisal, home inspection, title insurance, and escrow fees, and even if you receive CalHFA assistance, these costs must be prepared separately.

We cannot overlook the topic of insurance premiums. Simply put, obtaining homeowners insurance is mandatory to secure a loan, and in California, insurance premiums can vary significantly depending on fire risk areas. It is advisable to get insurance quotes before deciding on a property.

It is also helpful to understand the difference between pre-qualification and pre-approval. If the terminology is unfamiliar, think of it this way: pre-qualification is a process that gives you a rough limit without a credit check, while pre-approval involves a thorough document review and is much more credible when making an offer. If you are receiving CalHFA assistance, the first step is to obtain pre-approval through an approved lender.

This article is not investment or legal advice, and it is recommended to consult with a CalHFA-approved lender or real estate professional before applying.