For many Temecula Valley buyers, the monthly payment isn’t the problem — the upfront cash is. Between the down payment and closing costs, getting into your first home can feel out of reach even when your income comfortably supports the loan. That’s exactly the gap down payment assistance (DPA) is designed to close.
What down payment assistance actually is
DPA programs provide funds — usually as a deferred-payment second loan, and in some cases a grant — that cover part or all of your down payment and closing costs. You still qualify for a standard first mortgage (FHA, VA, USDA, or conventional); the assistance sits alongside it. Most deferred programs don’t require monthly payments — the balance is repaid when you sell, refinance, or pay off the home.
CalHFA MyHome: California’s flagship program
The program we use most often for Temecula Valley buyers is CalHFA’s MyHome Assistance Program. It provides a deferred junior loan of up to 3.5% of the purchase price or appraised value (whichever is less) toward your down payment or closing costs.
The essentials for 2026: You generally can’t have owned a home in the last three years. CalHFA sets income limits by county, and Riverside County’s limit covers many working households here — we’ll check your exact figure when we talk. A one-time homebuyer education course is required — it’s inexpensive and can be completed online. The home must be your primary residence, within CalHFA’s sales price limits.
Other paths to a lower upfront cost
MyHome isn’t the only tool. Depending on your situation, we also look at low-down-payment first mortgages (3% down conventional for first-time buyers, 3.5% down FHA), zero-down VA loans for eligible Veterans, zero-down USDA loans in eligible areas around the Inland Empire, and lender or local programs that come and go throughout the year. Part of my job is knowing which programs are funded and available right now — DPA funds can be limited and programs do pause when allocations run out.
What a DPA purchase looks like in practice
Say you’re buying a $600,000 home in Temecula with an FHA first mortgage. Your 3.5% down payment is $21,000. A MyHome junior loan of up to 3.5% can cover essentially all of that, leaving you to bring far less to closing — often just a portion of the closing costs, which can sometimes be offset further with seller credits.
Every scenario is different, and layering programs correctly matters: the assistance affects your debt-to-income calculation, your loan pricing, and your long-term equity plan. That’s why we run the numbers side by side — with and without assistance — so you can see the true cost of each path.
Is DPA right for you?
DPA is a fit if the down payment is the main thing standing between you and a home. It may not be the best path if you have significant savings and want the strongest possible offer, since some sellers view larger down payments as stronger. The right answer comes from your full picture — income, credit, savings, and how long you plan to stay.
If you’d like to find out what you qualify for in the Temecula Valley, let’s have a quick conversation. I’ll check current program availability and income limits for your household, and map out your lowest-cost path to keys in hand.
Tom Santos · Branch Manager & Senior Loan Originator · Arbor Financial Group · NMLS #332212 | DRE #1175932 · (951) 312-6234
Program terms, income limits, and availability are subject to change and eligibility requirements. This is not a commitment to lend; all loans subject to credit approval.
