Zero Down Isn't the Only Help Available. Here's What Else Gets You to the Closing Table.

Yes, CalHFA's MyHome Assistance Program can pair with a VA loan, but there's a catch most people never hear: it has to be a VA loan originated through CalHFA's own VA Loan Program, not just any VA lender. When it's set up correctly, MyHome adds a deferred second loan worth up to 3% of the purchase price, no monthly payment, nothing due until you sell, refinance, or pay off the home.

Veterans already have the biggest piece solved. Zero down is the headline benefit of a VA loan, and it's a real one. But "zero down" and "zero cash needed at closing" aren't the same thing, and that gap is exactly where a program like MyHome earns its keep. Here's how the pieces actually fit together, since most explanations either oversimplify it or bury the VA-specific part entirely.

What MyHome actually is

• A deferred second loan, not a grant. It doesn't get forgiven automatically, it sits quietly behind your first mortgage and comes due when you sell, refinance, or pay off the loan.
• No monthly payment. A small amount of simple interest accrues each year, but you're not writing a second check every month.
• The percentage depends on your first mortgage type. Paired with an FHA first mortgage, it can cover up to 3.5% of the purchase price. Paired with a conventional, VA, or USDA first mortgage, it's up to 3%.
• It has to be a CalHFA first mortgage. This is the part that trips people up. You don't take a VA loan anywhere and then bolt MyHome onto it. You go through a CalHFA-approved lender using CalHFA's own VA Loan Program as your first mortgage, then MyHome layers on top of that.

If you're using a VA loan, what does MyHome actually cover?

This is where it gets specific to veterans and it's the part most general explanations skip. Since a VA loan already eliminates the down payment, MyHome's 3% isn't filling a down payment gap that doesn't exist. What it does instead is give you a deferred source of funds to cover closing costs, prepaid escrow items, or the VA funding fee, the costs that still show up at the table even with zero down. On a $600,000 purchase, that's up to $18,000 available as a silent second, with no monthly payment attached, specifically to knock out the cash-to-close number that catches a lot of first-time VA buyers off guard.

Who actually qualifies?

• First-time homebuyer status. Generally defined as not having owned and occupied a primary residence in the past three years.
• Primary residence only. Non-occupant co-borrowers aren't allowed on this program.
• Household income under your county's limit. Limits vary significantly by county and are based on area median income, so a San Diego North County limit looks different than a Central Valley one.
• Completed homebuyer education. CalHFA requires a short counseling course before closing, either an approved online course or an in-person session.

Ask Your Lender This

Before you assume this does or doesn't apply to you, ask directly:

• "Are you a CalHFA-approved lender who can originate the CalHFA VA Loan Program, or only standard VA loans?"
• "Based on my county and household size, what's my actual MyHome income limit, and does my funding fee qualify as an eligible use of the funds?"

FAQ

Does MyHome ever need to be paid back?
Yes, eventually. It's deferred, not forgiven. Repayment is triggered when you sell the home, refinance the first mortgage, or pay it off completely.

Can I combine MyHome with other CalHFA programs?
In many cases, yes, MyHome can be layered with certain other CalHFA subordinate programs as long as it stays in second lien position behind your first mortgage. Ask your lender which combinations apply to your specific first mortgage type.

Is CalHFA's VA Loan Program the same as a regular VA loan?
It's still VA-insured with the same core VA benefits, but it's originated as a CalHFA product with CalHFA's own rate structure, which is what makes it eligible to pair with MyHome in the first place.

This is the first in a series breaking down California's first-time buyer assistance programs one at a time, since most of them get lumped together in a way that hides which one actually fits your situation. Follow along for the rest.

If you're a veteran, military buyer, or first-time buyer in San Diego North County trying to figure out whether this applies to you, reach out here and we'll check your county limit together. More program breakdowns like this live on the blog.

This content is for informational purposes only and is not legal or financial advice. All real estate services comply with NAR, HUD, and California DRE regulations.