Saving for a down payment can feel like the biggest roadblock to buying a home. If you are looking in Riverside, you actually have more options than you might think. Programs at the state, federal, county, and city levels can reduce upfront costs and help you qualify sooner. In this guide, you’ll learn what first-time buyer programs exist in Riverside County and the City of Riverside, how they work together, and the steps to get pre-approved. Let’s dive in.
First-time buyer programs at a glance
State: CalHFA
The California Housing Finance Agency (CalHFA) is a primary resource for first-time buyers statewide, including Riverside County. CalHFA offers first mortgages along with down payment and closing cost assistance that can pair with FHA, VA, USDA, or conventional loans through participating lenders. You can review current program descriptions and find lenders on the CalHFA website.
Federal mortgages and credits
- FHA loans require as little as 3.5 percent down with qualifying credit.
- VA loans allow 0 percent down for eligible service members, veterans, and some surviving spouses. Learn basics on the VA home loan page.
- USDA loans offer 0 percent down in eligible rural census tracts. Check program details with USDA Rural Development.
- Conventional 3 percent down options include Fannie Mae HomeReady and Freddie Mac Home Possible. These can sometimes pair with state or local assistance.
- Mortgage Credit Certificates (MCCs) may be available through local issuers and provide a federal tax credit. Availability varies by location.
Local city and county assistance
The City of Riverside and Riverside County periodically use federal HOME and CDBG funds to offer down payment assistance, forgivable second loans, or closing cost help. Program cycles and funding change over time, so always check the City’s official site and the County’s housing or community development pages for current status. Start at the City of Riverside website and the Riverside County site.
Nonprofit and lender-based options
Habitat for Humanity affiliates and community development organizations sometimes offer affordable homeownership opportunities or assistance for income-eligible buyers. Many local banks and credit unions also provide first-time buyer incentives, lender credits, or proprietary down payment assistance. These can often be combined with CalHFA or local programs when rules allow.
How programs can stack
Many Riverside buyers combine assistance to lower cash to close. A common path is pairing a CalHFA first mortgage with CalHFA down payment help. In some cases, you can add city or county assistance or a lender credit. Stacking depends on each program’s rules, income and price limits, and whether the property meets guidelines. Because these details change, confirm eligibility and combinations with a CalHFA-participating lender and the program administrator before you write offers.
CalHFA options to explore
CalHFA’s offerings evolve, but several themes remain constant for first-time buyers in Riverside County:
- First mortgage programs: CalHFA works through approved lenders that offer FHA, VA, USDA, and conventional options.
- Down payment assistance: The MyHome Assistance Program has historically provided a second loan to help with down payment and closing costs. Terms vary and may be deferred or repayable under certain conditions.
- Blended products: Some CalHFA options package a first mortgage with assistance for a single close.
- MCCs: In some cases, an MCC may be available through local issuers, reducing federal tax liability.
What to verify with your lender
- Which CalHFA first mortgage fits your situation.
- Current assistance amounts and any caps.
- Whether the assistance is deferred, forgivable over time, or due on sale or refinance.
- Income and purchase price limits for Riverside County.
- Homebuyer education requirements.
For official program details and a list of participating lenders, start at CalHFA’s website.
City and County help in Riverside
Local assistance is designed to expand access to homeownership for income-eligible households:
- Funding sources: Programs are often supported by federal HOME and CDBG funds.
- Typical features: Forgivable second mortgages or deferred-payment loans, purchase price and income limits, and required owner occupancy.
- Education: Many programs require a homebuyer education certificate from a HUD-approved counselor.
- Property standards: Single-family homes and some condos may be eligible, subject to program rules and inspections.
- Timing: Funding is limited and often first come, first served or lottery-based. Buying readiness improves your chances.
Start by checking current availability and application steps with the City of Riverside and Riverside County. Some programs require you to use approved lenders or attend specific classes, so verify steps early.
Nonprofits, credit unions, and community lenders
Nonprofit providers in Riverside County may offer low-interest seconds, closing cost grants, or affordable homeownership opportunities that require participation or sweat equity. Local banks and credit unions sometimes provide reduced fees, rate discounts, or proprietary assistance for first-time buyers. Ask any lender whether they participate in CalHFA and which assistance options they can package for you.
Homebuyer education and counseling
- Many programs require education through a HUD‑approved agency. You can find options and get your certificate through the HUD counseling locator.
- Counseling also helps with budgeting, credit, and post-purchase planning.
Who qualifies and what you need
Eligibility varies by program, but most share these basics:
- Income limits tied to area median income and household size.
- First-time buyer definition, often no homeownership in the past three years.
- Minimum credit score and debt-to-income guidelines based on the loan program.
- Owner-occupancy and property type rules.
- Homebuyer education requirements.
Documents to gather for pre-approval and assistance
- Photo ID and Social Security numbers for all borrowers.
- Recent pay stubs, W-2s or 1099s, and federal tax returns.
- Bank statements and a list of assets and debts.
- Explanations for any credit issues.
- Documentation for any gift funds or grants.
- Homebuyer education certificate, when required.
Your lender will give you a specific checklist for the mortgage and any down payment assistance you apply for.
Benefits and tradeoffs to weigh
Benefits
- Lower upfront cash needed for down payment and closing costs.
- Ability to enter the market sooner rather than waiting to save more.
- Some programs offer lower interest rates or payment assistance.
- Education and counseling can strengthen long-term success.
Tradeoffs
- Second mortgages may need to be repaid when you sell or refinance. Review terms carefully.
- Additional assistance can affect your total debt and future refinance options.
- Income and purchase price caps may narrow your search.
- Forgivable loans often require you to stay in the home for a set period.
- Some sellers prefer faster timelines, so choose an experienced team that can manage program steps efficiently.
Step-by-step: Getting pre-approved in Riverside
- Learn local limits and timelines
- Check state options and participating lenders on CalHFA’s website.
- Contact the City of Riverside and Riverside County to confirm whether local programs are accepting applications.
- Complete homebuyer education
- Take a HUD-approved course and obtain your certificate. Start at the HUD counseling locator.
- Choose an experienced lender
- Ask if they participate in CalHFA and which assistance programs they can combine.
- Confirm current rates, fees, and assistance terms.
- Gather documents and confirm eligibility
- Provide pay stubs, tax returns, bank statements, and any gift or grant documentation.
- Verify income and purchase price limits for the programs you plan to use.
- Apply for assistance
- Some city or county programs require a separate application or waitlist. Submit early once you have pre-approval.
- Coordinate with your real estate agent
- Make sure your agent understands program timelines, appraisal requirements, and seller expectations so your offer stays competitive and compliant.
Real-world scenarios to consider
- CalHFA plus FHA: You use an FHA first mortgage and CalHFA down payment help. Your cash to close is reduced, and you complete required education before making offers.
- VA plus local help: As an eligible veteran using a VA loan with 0 percent down, you apply for local assistance to cover part of your closing costs if allowed by program rules.
- USDA in eligible areas: If the property is in an eligible rural census tract, you use a USDA loan with 0 percent down and add state or lender assistance if permitted.
- Conventional 3 percent with assistance: You choose a conventional 3 percent down product and combine it with CalHFA or a local second to reach your target price point.
Each path has different income limits, property rules, and timelines. Confirm details with your lender and the program administrators before you open escrow.
Work with a local guide
Buying your first home in Riverside should feel achievable and well organized. With the right plan, you can combine the best of state, federal, and local assistance and move forward with confidence. If you want a step-by-step game plan tailored to your budget, timeline, and preferred neighborhoods, connect with Casey Garduno to schedule a free consultation. You will get clear next steps, introductions to experienced lenders, and local guidance from offer to keys.
FAQs
Do I have to be a first-time buyer to use Riverside assistance?
- Many programs target first-time buyers, but definitions vary and some options exist for veterans or targeted areas, so check each program’s rules.
Can I combine CalHFA with FHA, VA, or USDA loans in Riverside County?
- Many CalHFA options are designed to pair with FHA, VA, USDA, or conventional loans, but always confirm combinations with a participating lender.
How long does local down payment assistance approval take in Riverside?
- Timelines vary by program and funding cycle, so plan for extra time to complete homebuyer education and any city or county approvals.
Are down payment assistance funds taxable income?
- Assistance is usually structured as a loan or a forgiven loan rather than taxable income, but confirm your situation with a tax professional.
What documents do I need to start a DPA application in Riverside?
- Expect ID, pay stubs, tax returns, bank statements, asset and debt lists, any gift or grant letters, and a homebuyer education certificate if required.
