TL;DR – Can You Get Help with a Down Payment in Lincoln, CA?
Absolutely. Homebuyers in Lincoln, CA—especially first-time and low-to-moderate income buyers—have access to multiple down payment assistance (DPA) programs through the state of California and local housing initiatives. These programs can help cover upfront costs and make homeownership possible even if you don’t have significant savings.
What Is Down Payment Assistance (DPA)?
Down Payment Assistance refers to grants or loans offered to help cover a portion of your down payment and/or closing costs when buying a home. Some DPA programs must be repaid, while others are forgivable if you stay in the home for a certain number of years.
There are three main types:
- Grants (free money)
- Deferred Loans (repaid when you sell or refinance)
- Forgivable Loans (cancelled after a set period)
Top Programs for Lincoln Homebuyers
California offers several down payment assistance programs that Lincoln residents can tap into. Here are the most valuable options:
1. CalHFA MyHome Assistance Program
Up to 3.5% of the home’s purchase price for down payment or closing costs
Must be a first-time homebuyer
Deferred-payment loan (repaid when you refinance, sell, or pay off)
Can be combined with CalHFA first mortgage loans
2. CalPLUS with ZIP Extra
Combines CalPLUS FHA loan with Zero Interest Program (ZIP) for closing costs
ZIP loan is a 0% interest second mortgage
Fixed-rate first mortgage with predictable monthly payments
3. Forgivable Equity Builder Loan
Provides up to 10% of the home price for down payment
Fully forgiven after 5 years if you remain in the home
Must be a first-time homebuyer earning less than 80% of area median income (AMI)
Note: Programs like the Forgivable Equity Builder Loan often run out of funding quickly, so be sure to reach out today to find out if it’s still available.
Who Qualifies for These Programs?
To qualify, Lincoln homebuyers generally must:
- Be a first-time homebuyer (defined as not owning a home in the past 3 years)
- Meet income limits (varies by program and county)
- Use the home as a primary residence
- Complete a homebuyer education course (often available online)
Use CalHFA’s income limit lookup tool here.
Lincoln vs. Other California Cities: How We Compare
Compared to many cities in California, Lincoln is more accessible for first-time homebuyers. While places like San Francisco or Los Angeles often exceed income and loan limits, Lincoln’s market fits well within the parameters of DPA programs.
- Median home price in Lincoln: Lower than major metros
- Qualifying income threshold: More attainable for middle-income households
These factors make Lincoln an ideal location to utilize CalHFA and state-sponsored assistance.
How Much Assistance Can You Actually Get?
Depending on the program and your qualifications, you could receive:
- $10,000–$20,000 with CalHFA MyHome
- Up to 10% of the purchase price with the Forgivable Equity Builder Loan
- Full closing cost coverage through ZIP assistance
These funds can be life-changing for those struggling to save while paying rent or dealing with student loans.
Step-by-Step: How to Apply for DPA in Lincoln
- Get Pre-Approved by a CalHFA-approved lender like Fairway Mortgage Lincoln
- Check Your Eligibility using CalHFA’s tools and your lender’s guidance
- Take a Homebuyer Education Course online or in-person
- Apply for the DPA Program in tandem with your primary mortgage
- Submit Documents & Sign Disclosures
- Close on Your Home!
Pro tip: Work with a local lender who knows the ins and outs of these programs. Fairway Independent Mortgage in Lincoln is an approved CalHFA lender.
Common Misconceptions About Assistance Programs
“I make too much money.” Many programs are available to middle-income households.
“It’s only for people buying in bad neighborhoods.” Not true—most homes in Lincoln qualify.
“It will hurt my chances of getting approved.” These programs are designed to help, not hinder.
FAQ: Down Payment Help In California
Q: Can I use more than one assistance program?
A: Yes, some can be layered (like MyHome + ZIP).
Q: Does this affect my mortgage rate?
A: Some programs like CalPLUS include slightly higher rates in exchange for assistance.
Q: What if I move before the loan is forgiven?
A: You’ll need to repay any remaining DPA balance at sale or refinance.
Q: Do I have to be a California resident?
A: You don’t need long-term residency, but the home must be in California and owner-occupied.
Final Thoughts: Your Next Step Toward Homeownership
Down payment assistance is not a handout—it’s a launchpad. With programs tailored to Lincoln’s real estate market, there’s no reason to let a lack of savings keep you from owning a home. Let local experts guide you through every step and help you unlock the support you’re eligible for.
