Assistance is not always free money. Read the actual agreement to learn whether funds are a grant, a loan, conditionally forgivable debt, or a shared-appreciation arrangement—and compare the paired first mortgage too.
Know the structure before the amount
A grant may not require repayment when its conditions are satisfied. A deferred loan postpones payment but can leave a balance due later. A forgivable loan reduces or cancels debt only when specified conditions are met. Shared-appreciation arrangements can require a portion of future appreciation in addition to other repayment.
Program names and marketing summaries are not substitutes for the note and agreement. Ask what happens if you sell, refinance, transfer ownership, stop occupying the property, or repay early.
Check qualification and funding separately
Programs may use household income definitions, first-time-buyer rules, geography, approved first mortgages, education, and property restrictions. Eligibility for the first mortgage does not automatically establish eligibility for assistance.
Funding may be limited or reserved during a specific window. Confirm the participating lender, current offering, and reservation before making assistance a required part of your closing plan. A prequalification does not reserve every program’s money.
A California example: MyHome
CalHFA’s MyHome is deferred-payment junior financing used with an eligible CalHFA first mortgage. It should be evaluated as a loan with repayment terms, rather than described as an unconditional grant.
Check the current CalHFA materials for program requirements and available funding. Other California and local programs can have different structures. The fact that one program is unavailable does not determine eligibility for every other option.
Compare the total package
Request the first mortgage payment and costs, the assistance agreement, any accruing interest, and the expected repayment at a realistic sale or refinance date. Also compare a standard low-down-payment mortgage without assistance.
Imagine $15,000 of deferred principal that remains due at sale. That can reduce initial cash needed, but the principal obligation still needs to be included in your future equity calculation, along with any applicable interest or other terms. This hypothetical example is not a description of a particular program.
Common questions
Is deferred the same as forgiven?
No. Deferred means payment is postponed; forgiveness requires the program’s stated conditions.
Can I combine assistance programs?
Only when every relevant program and lender allows the combination.
Put the comparison to work
Sources & further reading
Reviewed October 27, 2026. Educational information, not an approval or commitment to lend. Examples are hypothetical and exclude items specifically noted. Actual eligibility, costs, and availability vary.