Contra Costa First Time Buyer Programs & East Bay Options

Dreaming of buying in Concord or across the Oakland–Hayward–Berkeley area but worried about the down payment? You are not alone. Many East Bay buyers use first‑time buyer programs to bridge the gap and get into a home sooner. In this guide, you will learn what programs exist, how they work in Contra Costa and nearby cities, what it takes to qualify, and the exact steps to get pre‑approved. Let’s dive in.

Program types you can use

CalHFA statewide options

California Housing Finance Agency (CalHFA) programs are designed for first‑time and low‑to‑moderate income buyers. You apply through a CalHFA‑approved lender and complete required homebuyer education. CalHFA offers first‑mortgage options you can pair with down payment and closing cost assistance. These typically include deferred or low‑interest second loans, such as MyHome or other forgivable or deferred assistance.

For Contra Costa buyers, CalHFA is a common path because it can work with FHA, VA, USDA, and conventional options offered through CalHFA. The big benefit is lower cash to close with structured assistance layered in.

Federal loans for first‑time buyers

• FHA: Allows down payments as low as 3.5% for qualifying buyers. FHA is known for flexible credit standards, though it includes mortgage insurance premiums.
• VA: Offers zero‑down financing for eligible veterans and active service members. Many East Bay lenders are experienced with VA loans.
• USDA: Provides zero‑down loans in eligible rural areas with income limits. Many parts of Contra Costa and Alameda counties are not USDA‑eligible, but some fringe areas may qualify.
• Conventional 3% down: Fannie Mae’s HomeReady and Freddie Mac’s Home Possible allow 3% down for eligible low‑income borrowers. These programs come with income limits, homebuyer education, and owner‑occupancy rules.

Down payment assistance basics

Down payment assistance (DPA) comes in a few forms:

• Grants that do not require repayment, though these are less common.
• Deferred second loans with low or zero interest that you repay when you sell, refinance, or pay off the first mortgage.
• Forgivable second loans that are forgiven after a set period of owner occupancy.

Most DPAs are recorded as a second mortgage and must be paired with an eligible first mortgage. Your lender must accept the second lien, so confirm lender participation early.

Mortgage Credit Certificates

Mortgage Credit Certificates (MCCs) create a federal tax credit based on a percentage of your annual mortgage interest. This reduces your federal tax liability and can increase your effective qualifying income. MCCs are usually for first‑time buyers, have income and purchase price limits, and are issued by a local government or housing authority. You apply through a participating lender or the issuing agency.

Local programs to check in the East Bay

Contra Costa County

Look for countywide first‑time homebuyer support funded through programs like HOME or CDBG, which often provide DPA with income and purchase price limits. These programs typically define a first‑time buyer as someone who has not owned a principal residence in the last three years and require homebuyer education.

City of Concord

Check Concord’s housing or community development pages for any first‑time buyer assistance and education resources. If the city is not running its own DPA at the moment, it may direct you to county programs or partner agencies.

City of Oakland

Oakland has historically offered city‑level down payment assistance and an MCC program through its Housing & Community Development department. Programs usually set specific income limits, owner‑occupancy requirements, and sometimes lists of participating lenders or approved condos. Review the current DPA type and any MCC availability before you apply.

City of Berkeley

Berkeley’s housing department may offer local counseling and targeted assistance. The city often focuses on affordability tools tied to income and purchase price limits. If a DPA is available, expect owner‑occupancy and education requirements.

Richmond, Antioch, and Hayward

These cities have at times offered local assistance or linked to countywide options. Because details change, confirm current availability, income limits, and how the assistance is structured.

Nonprofit counseling and education

HUD‑approved housing counseling agencies in the East Bay offer workshops, credit coaching, and help navigating DPA or MCC options. These agencies can also provide the homebuyer education certificate many programs require.

Who qualifies and property rules

First‑time buyer definition

Most programs define a first‑time buyer as someone who has not owned a principal residence within the last three years. Some exceptions exist, such as certain veteran provisions. Always confirm the exact definition for your program.

Income and price limits

Many DPAs, MCCs, and conventional low‑down programs have household income limits based on area median income. Some also set maximum purchase prices. Limits vary by program, family size, and location, and they are updated annually.

Owner‑occupancy requirements

Almost all first‑time buyer assistance requires you to live in the home as your primary residence for a set period. This can be at least one year or longer, especially if a DPA is forgivable over time.

Credit, DTI, and reserves

FHA loans tend to allow lower minimum credit scores than conventional loans, though lenders can set higher internal minimums. Conventional options like HomeReady and Home Possible allow 3% down with mortgage insurance and possible lender overlays. CalHFA programs have specific minimum credit standards and must be used with CalHFA‑approved lenders. Debt‑to‑income limits vary, and some lenders allow higher DTI with strong compensating factors.

Property types allowed

Eligible properties typically include single‑family homes, condos, planned unit developments, and sometimes 2–4 unit properties. Condos may need to appear on an approved list or meet program and insurer standards. Multi‑unit properties can be eligible for FHA or conventional financing if you will live in one unit, but check DPA rules before writing an offer.

Homebuyer education and gifts

Many programs require you to complete a homebuyer education course before closing. Certificates are valid for a limited time. Gift funds are often allowed, though the source and documentation must meet program rules. Some programs allow non‑occupant co‑borrowers, while others do not.

MCC tax credit notes

An MCC provides a dollar‑for‑dollar reduction in your federal tax liability based on a percentage of mortgage interest. You must have tax liability to benefit, and some programs allow unused credits to carry forward. The exact credit percentage and limits depend on the issuing agency.

Pre‑approval steps that work

Step‑by‑step process

1. Review eligibility and options. Start with CalHFA, HUD, and local city or county housing department pages for Contra Costa, Concord, Oakland, Berkeley, Richmond, Antioch, and Hayward.
2. Register for a HUD‑approved homebuyer education class. Many programs require the certificate before you can use DPA.
3. Contact multiple mortgage lenders. Include CalHFA‑approved lenders and local institutions experienced with DPA and MCC programs.
4. Get a full pre‑approval that includes your intended assistance. Confirm that your lender accepts the second lien if you plan to use a DPA.
5. Apply for local DPA or an MCC at the right time. Some issuers require applications once you are under contract, while others have different steps.
6. Complete inspections, any condo or HOA approvals, and education certificates well before closing.

Documents to prepare

• Government ID and Social Security number
• Recent pay stubs and last two years of W‑2s or 1099s
• Last two years of federal tax returns
• Bank statements and asset documentation for the past two to three months
• Gift letters and documentation if funds are being gifted
• A list of all monthly debts, including student loans and auto loans
• Proof of homebuyer education completion if available

Questions to ask lenders

• Are you approved for CalHFA and any local DPA or MCC programs I am considering?
• Is the DPA forgivable or deferred, and when is it repaid?
• What are the income and purchase price limits for this program?
• What owner‑occupancy or resale rules should I know about?
• Are condos or 2–4 unit properties eligible under this program?
• How is the DPA structured at closing, and will a second lien be recorded?

Timeline realities

• Homebuyer counseling can take 1 to 8 hours, and certificates may take time to process.
• DPA and MCC applications can add 2 to 4 weeks to underwriting and closing, depending on the jurisdiction.
• Lenders with more overlays or complex financing may have longer processing times.

Tips for small investors

Most first‑time buyer assistance and many CalHFA programs require you to occupy the home. If you want to build long‑term wealth, consider purchasing a 2–4 unit property and living in one unit. That can meet owner‑occupancy rules while creating rental income from the other units. If you plan renovations, FHA 203(k) or other rehab financing can be an option when you will live in the home, but verify the occupancy rules and DPA compatibility. If you intend to rent the entire property, you will likely need standard conventional financing without DPA.

Common pitfalls to avoid

• Assuming every lender accepts every DPA. Lender participation varies.
• Waiting too long to verify condo or HOA eligibility. Some programs require specific approvals.
• Missing the homebuyer education requirement. This can delay closing.
• Overlooking income and purchase price caps. These can differ from county AMI numbers and change each year.

Make your East Bay plan

Buying your first home in Concord or across the Oakland–Hayward–Berkeley corridor is possible with the right preparation. Start by mapping your eligibility, completing homebuyer education, and securing a pre‑approval that reflects any DPA or MCC you plan to use. When you are ready to shop, choose properties that fit program rules and timelines so your financing stays on track.

If you want a calm, local perspective on neighborhoods, HOA rules, and the steps from offer to closing, reach out. As a Contra Costa‑focused agent, I keep the process clear and practical so you can move forward with confidence. Contact Kailani Kimoto to talk through your goals and next steps.

FAQs

Can I combine DPA with a 3% down conventional loan?

• Yes. Many DPAs are designed to pair with 3% down options like HomeReady or Home Possible or with CalHFA first mortgages, but confirm lender acceptance and program rules.

Are condos or multi‑unit homes eligible for first‑time programs?

• Sometimes. Condos often require program or insurer approval, and 2–4 unit properties may be eligible if you will live in one unit and meet DPA and loan requirements.

Will using DPA increase my monthly payment?

• It depends on the structure. Deferred or forgivable seconds often do not add a monthly payment, but they can be due at sale or refinance and affect long‑term costs.

Do these programs limit how I can sell later?

• Some DPAs require repayment when you sell or refinance, and a few include resale restrictions. Review the specific terms before you commit.

What credit score do I need as a first‑time buyer?

• Requirements vary. FHA typically allows lower minimum scores, while conventional and CalHFA programs may set higher minimums and lender overlays.

Can investors use first‑time buyer assistance?

• Generally no. Most DPAs and MCCs require owner‑occupancy. If you live in one unit of a 2–4 unit property, some programs may allow it under owner‑occupant rules.