Is the down payment the one thing standing between you and a home in Burbank? You are not alone. In a high-cost market like Los Angeles County, even well-qualified buyers can struggle to bring in enough cash for the down payment and closing costs. This guide shows you how CalHFA down payment assistance can help, who qualifies, what the numbers look like for Burbank prices, and the steps to use it with confidence. Let’s dive in.
CalHFA basics for Burbank buyers
CalHFA offers a set of first-mortgage and junior loan options that can reduce your upfront cash needed to buy. The down payment help usually comes as a second loan, also called a subordinate lien, that covers part of your down payment and possibly some closing costs.
Two common assistance structures
- Deferred-payment junior loan: You make no monthly payments on this assistance while you live in the home. The balance is typically due when you sell, refinance, or pay off the first mortgage.
- Zero-interest junior loan: This option carries no interest. Payback usually happens when you sell, refinance, or pay off the first mortgage. Check specific terms for your program pairing.
Program names and pairings can change over time. The most commonly referenced options in public materials include MyHome Assistance and a zero-interest option that pairs with select CalHFA first mortgages.
Typical amounts and limits
Assistance amounts are often expressed as a percentage of the purchase price or appraised value, whichever is less. Public materials commonly describe amounts around the low single digits, such as about 3 to 3.5 percent, subject to program caps. Exact percentages, dollar caps, and pairing rules are set by CalHFA and can change. Your lender will confirm what is available for your situation.
Eligibility in Los Angeles County
CalHFA programs layer state rules with county-based limits. Since Burbank is in Los Angeles County, you will follow LA County criteria.
First-time buyer definition
You are usually considered a first-time homebuyer if you have not owned and occupied a home as your primary residence during the past three years. Some programs may offer exceptions for certain buyers, such as veterans. Confirm the definition for the program you choose.
Income and purchase price limits
CalHFA sets income and purchase price limits that vary by county and program. Los Angeles County limits are generally higher than many other areas of the state, but they still cap eligibility. Limits can change with program updates and federal adjustments, so your lender will review the latest figures with you.
Property and borrower requirements
- Owner-occupied only. You must live in the home as your primary residence.
- Eligible property types can include single-family homes, condos, and PUDs, depending on the first mortgage you choose.
- Credit score, debt-to-income ratio, and underwriting standards apply. CalHFA programs allow low down payments but still require that you qualify with a CalHFA-approved lender.
- Eligible borrowers include U.S. citizens, permanent residents, and other categories acceptable to CalHFA and the first-mortgage investor. Your lender will confirm acceptable documentation.
How the assistance works with your loan
CalHFA assistance is typically paired with a CalHFA first mortgage or an approved conventional or FHA loan, depending on the program.
Pairing with your first mortgage
Common pairings include CalHFA Conventional and CalHFA FHA first mortgages. Some assistance options require you to use a specific CalHFA first mortgage. Others may work with an approved conventional or government loan. Your lender will guide you to the right pairing.
What you can use the funds for
- Down payment only, to meet the minimum required by your first mortgage.
- Down payment and some or all closing costs, subject to program limits.
- In some cases, to buy discount points to reduce your interest rate, if the program allows it.
Repayment triggers to know
Most CalHFA junior loans have no monthly payment while you occupy the home. The balance typically comes due when you sell, refinance, or pay off the first mortgage. If you plan to refinance or take cash out later, expect to pay off the junior lien first.
Mortgage insurance and loan limits
If you use a conventional loan with less than 20 percent down, private mortgage insurance is usually required. That rule does not change just because you use DPA. Your loan must also meet conforming or FHA limits for the county, along with CalHFA program caps.
What the numbers look like in Burbank
Burbank is a high-cost submarket within Los Angeles County. Here is what a percentage-based DPA could look like at common price points:
- If your purchase price is $700,000:
- 3 percent assistance is $21,000
- 3.5 percent assistance is $24,500
- If your purchase price is $900,000:
- 3 percent assistance is $27,000
- 3.5 percent assistance is $31,500
- If your purchase price is $1,200,000:
- 3 percent assistance is $36,000
- 3.5 percent assistance is $42,000
These examples help you gauge scale. A DPA equal to about 3 percent can cover a minimum down payment target for certain low-down options, or free up cash for closing costs and reserves. For buyers aiming for 10 to 20 percent down, DPA is often one part of a broader plan that can include savings and gifts.
How to interpret the numbers
- If you are using FHA or a low-down conventional loan, a DPA near 3 percent may allow you to meet the minimum down payment and keep cash in reserves. Your monthly payment will still reflect the loan size and any required mortgage insurance.
- If you are targeting 10 to 20 percent down to lower your rate or remove PMI on a conventional loan, CalHFA DPA will not usually cover the entire gap. It can still reduce the out-of-pocket amount when combined with other sources.
Step-by-step: Using CalHFA in Burbank
A smooth process starts with the right team and timeline. Here is a simple roadmap.
- Get prequalified with a CalHFA-approved lender
- Ask the lender to review your profile against CalHFA first mortgage options and the matching DPA.
- Request a side-by-side estimate that shows loan terms with and without the assistance.
- Complete the applications
- Fill out the lender’s mortgage application and the CalHFA DPA application.
- Provide income documents, asset statements, ID, and authorization for a credit check.
- Underwriting and approvals
- The lender underwrites your first mortgage and confirms you meet CalHFA DPA rules.
- Some programs require homebuyer education. Complete it as early as possible if needed.
- Closing day
- The junior loan is finalized and recorded along with your first mortgage.
- Funds are applied to your down payment and allowed closing costs per program rules.
- After closing
- Maintain owner-occupancy and follow any program conditions so your assistance stays in good standing.
Documents you will likely need
- Recent pay stubs and W-2s or tax returns
- Bank and asset statements
- Government-issued photo ID
- Gift letter and proof of funds if using gift money
- Certificate of homebuyer education if required by your program
Timeline and education tips
- Coordinate DPA approval with your rate lock and closing. DPA paperwork can be a prerequisite for closing.
- Finish homebuyer education early so it does not slow the file.
- Work with a lender and escrow team experienced with CalHFA to reduce delays.
Planning tips and common pitfalls
A little planning goes a long way when you add a junior loan.
- Budget for mortgage insurance if your down payment is under 20 percent on a conventional loan. DPA does not remove PMI on its own.
- Expect to pay off the junior lien if you refinance or sell. This can affect cash-out plans.
- Stay within program income and purchase limits. Precheck these with your lender before you write offers.
- Keep your documents current and consistent. Missing pages or expired statements can delay closing.
Can you combine DPA with gifts or other aid
Often, yes. Many buyers pair CalHFA assistance with gift funds from family. Some programs can also work with other assistance, as long as the lender and CalHFA approve the mix. Be sure your lender reviews all sources up front so your file is structured correctly.
Ready to explore your options
If you want a clear plan for buying in Burbank with down payment help, let’s talk through the numbers, the pros and cons, and a timeline that fits your goals. For a friendly, step-by-step conversation, connect with Michael Mucino. We are here to help you move forward with confidence.
FAQs
Who counts as a first-time buyer for CalHFA programs
- Usually someone who has not owned and occupied a primary residence in the last three years, with possible exceptions depending on the program.
How much CalHFA help can I get in Burbank
- Assistance is commonly described in the low single digits of the price, such as about 3 to 3.5 percent, subject to program caps and lender confirmation.
Will I have a monthly payment on the assistance
- Many CalHFA junior loans are deferred with no monthly payment, and the balance is typically due when you sell, refinance, or pay off the first mortgage.
Does CalHFA remove private mortgage insurance
- No. If your conventional loan is above 80 percent loan-to-value, PMI usually applies even with DPA. FHA loans have their own mortgage insurance rules.
Can I use CalHFA with an FHA or conventional loan
- Yes, assistance is often paired with eligible CalHFA first mortgages, including FHA or conventional options, subject to program rules.
Will a junior lien affect future refinancing
- Yes. You will usually need to pay off the junior lien to refinance, which can limit cash-out options.
What property types are allowed in Burbank
- Owner-occupied homes that meet program and lender guidelines, which may include single-family homes, condos, and PUDs, subject to the first mortgage rules.
