Can I buy a home in Redding California with no money down?

It is possible when CalHFA's MyHome Assistance Program covers the down payment and seller concessions cover closing costs. This requires income eligibility, a qualifying credit score of 660-680 or higher, and an available CalHFA-approved first mortgage. Not every buyer will qualify, but many Shasta County first-time buyers close with minimal out-of-pocket costs.

Do I have to be a first-time buyer to use first-time homebuyer programs?

For most federal and CalHFA programs, 'first-time homebuyer' means you have not owned a primary residence in the last three years — not that you have never owned a home. If you owned a home years ago, were divorced and your spouse kept the home, or were a displaced homemaker, you may still qualify.

First-Time Homebuyer Loans — Redding, CA

Your First Home Is Closer Than You Think

Q: What loans are available for first-time homebuyers in California?

First-time buyers in California have access to FHA loans (3.5% down, 580+ credit), conventional HomeReady/Home Possible programs (3% down, 620+ credit), CalHFA's MyHome Assistance Program (up to 3.5% deferred down payment loan), and CalHFA's Dream For All Shared Appreciation Loan (up to 20% down payment assistance for first-generation buyers when funding is available).

Q: What is the CalHFA MyHome Assistance Program?

CalHFA's MyHome Assistance Program is a deferred-payment silent second loan providing up to 3.5% of the purchase price for down payment and closing costs. There are no monthly payments — the loan is repaid when you sell, refinance, or pay off your mortgage. It requires first-time buyer status, CalHFA income limit compliance, a homebuyer education course, and a CalHFA-approved lender.

Q: What credit score do I need to buy my first home?

FHA loans accept credit scores as low as 580 with 3.5% down, or 500-579 with 10% down. Conventional HomeReady and Home Possible programs require a 620 minimum. CalHFA programs typically require 660-680 depending on the loan type.

Q: Should I use FHA or a conventional loan as a first-time buyer?

FHA is usually better if your credit score is below 680 or your debt-to-income ratio is above 45%. Conventional HomeReady or Home Possible is typically better long-term if your score is 680 or above, because PMI eventually cancels while FHA mortgage insurance typically lasts the life of the loan.

Low down payments, down payment assistance, and state programs designed specifically for first-time buyers mean homeownership in Redding may be more affordable than you realize. Pete Metz at Von Mortgage has helped hundreds of first-time buyers across Shasta County get into their first home.

Schedule Your Free Consultation! Apply Now

3% Minimum Down Payment

3.5% CalHFA Down Payment Help

580+ Credit Score (FHA Path)

$0 Out-of-Pocket Possible

The Basics

What Is a First-Time Homebuyer Loan?

A "first-time homebuyer loan" isn't a single loan type — it's a category of mortgage programs and assistance options specifically designed to make homeownership more accessible for people buying their first home. These programs offer advantages like reduced down payments, down payment assistance (DPA), lower mortgage insurance costs, and special interest rates.

In California, first-time buyers have access to some of the strongest assistance programs in the country — including CalHFA's MyHome Assistance Program, which can cover your down payment entirely, and the Dream For All Shared Appreciation Loan, which offers up to 20% down payment help. These stack on top of underlying loan types like FHA or conventional, dramatically reducing what you need out of pocket.

At the federal level, programs like Fannie Mae's HomeReady and Freddie Mac's Home Possible allow first-time buyers to put as little as 3% down on a conventional loan — with reduced mortgage insurance costs for qualifying buyers. Combined with a CalHFA assistance layer, many buyers in Redding are closing with very little — sometimes nothing — out of pocket.

You may qualify even if you've owned before. In California and for most federal programs, a "first-time homebuyer" is defined as someone who has not owned a primary residence in the last three years. Divorced individuals, displaced homemakers, and veterans may also qualify under expanded definitions. If you owned years ago, you may be eligible again.

Your Options

First-Time Buyer Programs Available in Redding

Every buyer's situation is different. Here are the four main paths — and they can often be combined to maximize what you get.

Government-Backed

FHA Loan

Best for buyers with lower credit or less savings

The most accessible path to homeownership. FHA loans require just 3.5% down and accept credit scores as low as 580 — making them the top choice for buyers who are still building their financial profile. Can be paired with CalHFA down payment assistance to reduce out-of-pocket costs even further.

3.5% down (580+ credit)
Credit scores from 580
DTI up to ~57%
Gift funds 100% allowed
Pairs with CalHFA MyHome DPA
Loan limit: $524,225 (Shasta Co.)

Conventional

HomeReady / Home Possible

Best for buyers with 620+ credit who want PMI to go away

Fannie Mae's HomeReady and Freddie Mac's Home Possible programs allow first-time buyers to put just 3% down on a conventional loan — with reduced mortgage insurance rates compared to standard conventional. PMI cancels at 20% equity. Best long-term value for buyers with decent credit.

3% down payment
620+ credit score
Reduced PMI vs standard conventional
PMI cancels at 20% equity
Pairs with CalHFA MyHome DPA
Loan limit: $806,500 (Shasta Co.)

CalHFA Program

MyHome Assistance

Best for buyers who need help covering down payment or closing costs

CalHFA's MyHome program provides a deferred-payment "silent second" loan of up to 3.5% of the purchase price for down payment and/or closing costs. No monthly payments — the loan is repaid when you sell, refinance, or pay off your mortgage. Works with FHA, conventional, VA, and USDA first mortgages.

Up to 3.5% of purchase price
No monthly payments (deferred)
Repaid at sale or refinance
Works with FHA or conventional
Requires homebuyer education course
Income limits apply by county

CalHFA Program

Dream For All

Best for first-generation buyers who need maximum assistance

CalHFA's Dream For All Shared Appreciation Loan offers up to 20% of the purchase price (max $150,000) in down payment assistance — enough to eliminate PMI entirely on a conventional loan. In exchange, CalHFA shares in a portion of the home's future appreciation. Funding opens in competitive windows — check with Pete for current availability.

Up to 20% down payment assistance
Max $150,000 in assistance
No monthly payments
Can eliminate PMI entirely
First-time + first-generation buyers
Limited funding — opens in windows

Side-by-Side Comparison

FHA vs Conventional vs CalHFA

The right program depends on your credit score, income, and how much cash you have. Here's how the options stack up for Shasta County buyers in 2025.

	FHA Loan	Conventional 3%	CalHFA + MyHome
Min. Down Payment	3.5%	3%	✓ As low as 0%*
Min. Credit Score	580	620	660–680 (CalHFA)
Down Payment Help	Gift funds OK	Gift funds OK	✓ Up to 3.5% DPA loan
Mortgage Insurance	MIP — life of loan	PMI — cancels at 20%	Depends on first loan type
Income Limit	None	None	Yes — varies by county
Homebuyer Education	Not required	Not required	Required (~$99 online)
Loan Limit (Shasta Co.)	$524,225	$806,500	Follows first loan type
Property Types	Primary only	Primary only (3% down)	Primary only
Best For	Lower credit, high DTI	620+ credit, long-term savings	✓ Limited cash, income-eligible buyers

*$0 out of pocket possible when CalHFA DPA covers the full down payment and seller concessions cover closing costs. Subject to income limits, program availability, and full underwriting. Call Pete for your specific scenario.

The Process

How Buying Your First Home Works — Step by Step

Never done this before? Here's exactly what to expect from start to keys, in plain English.

Start With a Free Consultation — Find Out What You Qualify For

The first call is all about your situation. We look at your credit score, income, monthly debts, and savings to figure out which programs you qualify for — FHA, conventional, CalHFA, or a combination. Many buyers are surprised by how much assistance is available. This call is free, there's no obligation, and it typically takes 15–20 minutes. You'll leave knowing exactly where you stand.

Get Pre-Approved — Shop With Confidence

Pre-approval is a formal review of your finances that results in a letter confirming how much you're approved to borrow. In today's Redding market, sellers expect buyers to be pre-approved before making offers. If CalHFA is part of your plan, we'll also complete the program enrollment at this stage. Pre-approval typically takes 24–48 hours once you submit your documents.

Complete Your Homebuyer Education Course (If Required)

If you're using a CalHFA program, you'll need to complete a HUD-approved homebuyer education course before closing. The standard is the eHome 8-hour online course, which costs around $99 and includes a one-on-one counseling session. Your certificate is valid for one year. I'll walk you through where to take it and when to get it done so it doesn't slow down your closing.

Make an Offer & Go Under Contract

Your agent submits an offer. When it's accepted, we lock your interest rate and move into underwriting. An appraisal confirms the home's value. If you're using FHA, the appraiser also checks for basic safety and condition standards. For most move-in-ready homes in Redding, this is a straightforward step.

Close on Your First Home

Underwriting issues your clear to close. We walk through your Closing Disclosure together line by line — no surprises. You bring your down payment and closing costs (which may be minimal or zero if DPA and seller concessions are in play), sign your documents, and get your keys. From offer to close typically takes 21–35 days. Welcome home.

Do You Qualify?

What You Need to Get Started

You don't need to have everything perfect before calling. These are general benchmarks — and there's a path for most situations.

First-Time Buyer Definition

No ownership in 3 years

Haven't owned a primary residence in the past three years? You qualify as a first-time buyer for most programs — even if you've owned before.

Credit Score

580+ (FHA) / 620+ (Conventional)

FHA accepts scores from 580. Conventional and CalHFA typically require 620–680. The higher your score, the better your rate and the more programs you can access.

Down Payment

3–3.5% (or $0 w/ DPA)

3.5% minimum for FHA, 3% for conventional programs. CalHFA's MyHome can cover this entirely for income-eligible buyers. Down payment can come from savings, gifts, or assistance programs.

Income

Stable 2-Year History

W-2 employees, self-employed, and even gig workers with documented income can qualify. CalHFA programs have county-specific income limits — call Pete to confirm the current Shasta County limit.

Debt-to-Income Ratio

Up to 45–57%

FHA allows up to ~57% DTI. Conventional typically allows up to 45–50%. Student loans, car payments, and credit cards all count. We calculate this in our first call so you know exactly where you stand.

Homebuyer Education

Required for CalHFA

CalHFA programs require an 8-hour HUD-approved course (about $99 online). Not required for standard FHA or conventional. The certificate is valid for one year from completion.

Property

Primary Residence Only

All first-time buyer programs require you to live in the home. Single-family homes, approved condos, and some manufactured homes qualify. No investment properties.

CalHFA Income Limit

Varies by County

CalHFA sets income limits by county based on area median income. Limits are updated annually. Call Pete directly for the current Shasta County limit — it changes and we always have the latest figure.

Guidelines vary by program and scenario. Final approval is subject to full underwriting review. This page is informational, not a commitment to lend. Call Pete directly at (530) 227-2476 for your specific situation.

Frequently Asked Questions

Questions First-Time Buyers Ask

What loans are available for first-time homebuyers in California?

First-time buyers in California have access to several loan programs. FHA loans require 3.5% down with a 580+ credit score. Conventional loans (HomeReady/Home Possible) allow 3% down with a 620+ score. CalHFA's MyHome Assistance Program provides a deferred-payment loan of up to 3.5% of the purchase price to cover your down payment or closing costs — effectively layering on top of your FHA or conventional first mortgage. CalHFA's Dream For All program offers up to 20% in down payment assistance for first-generation buyers when funding windows are open.

What is the CalHFA MyHome Assistance Program?

CalHFA's MyHome Assistance Program is a "silent second" deferred-payment loan that provides up to 3.5% of the purchase price to help with your down payment and/or closing costs. There are no monthly payments — the loan is repaid when you sell, refinance, or pay off your first mortgage. It works with FHA, conventional, VA, and USDA first mortgages and requires you to be a first-time buyer, meet CalHFA's county income limits, and complete a HUD-approved homebuyer education course. You must also use a CalHFA-approved lender.

Can I buy a home in Redding with no money down?

It's possible in the right scenario. CalHFA's MyHome Assistance Program can cover your entire down payment (up to 3.5% of the purchase price). If the seller also agrees to pay your closing costs through a seller concession, you could close with very little or nothing out of pocket beyond your earnest money deposit. This requires income eligibility, a qualifying credit score, and an available CalHFA-approved first mortgage. Not every buyer will qualify, but it's worth running the numbers. Call Pete at (530) 227-2476 to find out if you're in the window.

What credit score do I need to buy my first home?

The minimum depends on the program. FHA loans accept credit scores as low as 580 (with 3.5% down) or 500–579 with 10% down. Conventional first-time buyer programs like HomeReady and Home Possible require a 620 minimum. CalHFA programs typically require 660–680 depending on the loan type. The higher your score above these minimums, the better your interest rate — which has a significant impact on your monthly payment over 30 years. If your score needs work, I can give you a specific action plan to get there faster than you might expect.

What is the income limit for CalHFA in Shasta County?

CalHFA income limits are updated annually and vary by county based on area median income. Because these figures change and differ by household size and program type, the most accurate way to check your eligibility is to call Pete directly at (530) 227-2476. As a CalHFA-approved lender, Von Mortgage always has the current limits on hand and can tell you instantly whether you're within range.

Do I have to be a first-time buyer to use these programs?

Not necessarily. For most federal and CalHFA programs, "first-time homebuyer" means you haven't owned a primary residence in the last three years — not that you've never owned a home. If you owned a home years ago, were divorced and your spouse kept the home, or were a displaced homemaker, you may still qualify. Some programs also have expanded definitions for veterans. It's worth checking even if you think you don't qualify.

What is the California Dream For All program?

California Dream For All is a CalHFA shared appreciation loan that provides up to 20% of the purchase price (maximum $150,000) in down payment assistance. In exchange, CalHFA receives a proportional share of the home's appreciation when you sell or refinance. There are no monthly payments. It's available to first-time, first-generation homebuyers who meet income limits. The program opens in competitive funding windows — it's not available year-round. Contact Pete to find out if a funding window is currently open and whether you meet the eligibility requirements.

Should I use FHA or a conventional loan as a first-time buyer?

It depends on your credit score, debt load, and how long you plan to stay in the home. FHA is usually the better choice if your credit score is below 680 or your debt-to-income ratio is above 45% — it's more accessible and forgiving. Conventional (HomeReady/Home Possible) is typically the better long-term choice if your score is 680 or above, because PMI eventually cancels while FHA mortgage insurance typically lasts the life of the loan. If CalHFA assistance is available to you, the program's requirements often make that decision for you. The best answer is a side-by-side comparison with real numbers — which is exactly what we do on our first call.

Ready to Find Out What You Qualify For?

Let's Figure Out Your Best Path to Your First Home

A free 15-minute call with Pete covers everything — your credit score, which programs you qualify for, how much you'll need out of pocket, and what your monthly payment looks like. No pressure. No commitment. Just a local lender who's helped hundreds of Shasta County buyers get into their first home.