CALIFORNIA — A California mortgage lender has announced a new no-down-payment homebuying program aimed at renters who struggle to save for upfront costs in the state’s high-priced housing market.

The California Legislative Analyst’s Office reported that in late 2025, a buyer needed roughly $221,000 in annual income to afford a mid-tier home in California.

That figure is more than double the state’s 2024 median household income of about $102,000, underscoring the gap between housing costs and typical earnings.

The report highlights ongoing affordability challenges for residents as home prices continue to outpace income growth.

The program, launched by A Good Lender, uses lender-paid grants to cover the required down payment for certain FHA and conventional loans, according to a company announcement. 

The lender says the assistance does not need to be repaid and is intended to help renters transition into homeownership.

Program details and limitations

According to information provided by the lender, the grants can cover minimum down‑payment requirements for an FHA loan — 3.5% of a home’s purchase price. 

Borrowers must still qualify for a mortgage based on credit, income, and debt‑to‑income standards, and are responsible for closing costs.

The program applies only to primary residences and does not cover investment properties or second homes. Specific eligibility requirements and long-term costs, such as interest rates and mortgage insurance, were not detailed in the announcement.

State funding limits

Housing affordability remains a significant challenge across California, where high home prices and rent burdens have made saving for a down payment difficult for many households. 

State and local agencies have previously offered down-payment assistance programs, though some have faced funding limits or pauses due to high demand.

Housing analysts note that while no-down-payment programs can help some buyers enter the market, they may also carry higher monthly payments or long-term costs, depending on loan terms.

Compare loan options

Because the program is offered by a private lender, details about funding sources, underwriting standards, and how many buyers the program is expected to serve were not independently verified. 

Prospective buyers are typically advised to compare loan options and review full terms before committing.

For more information visit https://agoodlender.com/how-to-buy-a-house-with-no-money-down-in-california