For many potential homebuyers in Murrieta and Temecula, the biggest obstacle isn't necessarily qualifying for a mortgage payment.

It's coming up with the down payment and closing costs at the same time.

That's why California buyers should understand programs available through the California Housing Finance Agency, better known as CalHFA.

CalHFA currently offers several first-mortgage and subordinate-financing programs that can help eligible buyers bridge the gap between having enough income to afford a home and having enough cash saved to close.

But there's something important to understand from the beginning:

Down-payment assistance is not automatically free money.

Depending on the program, assistance can be structured as a subordinate loan that eventually must be repaid.

Here's what Murrieta, Temecula and Riverside County buyers should know in 2026.

MyHome Can Help With the Down Payment

CalHFA's MyHome Assistance Program provides a deferred-payment junior loan.

When MyHome is paired with an eligible CalHFA FHA first mortgage, CalHFA currently states that assistance may be available for up to the lesser of 3.5% of the purchase price or appraised value. With eligible conventional financing, the maximum is generally the lesser of 3% of the purchase price or appraised value.

That can make a significant difference.

Suppose an eligible buyer purchases a $500,000 home using an FHA structure.

A 3.5% down payment equals:

$500,000 × 3.5% = $17,500

Instead of automatically assuming that $17,500 must come entirely from the buyer's savings, we can determine whether MyHome could potentially help.

The assistance is a junior lien, however—not simply a grant. Payments are deferred, and repayment can be triggered by events such as selling, refinancing or paying off the first mortgage.

CalHFA MyHome Assistance Program

What About Closing Costs?

The down payment is only one part of buying a home.

Buyers may also need money for closing costs and prepaid expenses such as homeowners insurance, property taxes and escrow funding.

CalHFA's CalPLUS FHA program combines an FHA-insured 30-year fixed first mortgage with CalHFA's Zero Interest Program, or ZIP, for eligible closing costs. CalHFA describes the CalPLUS first-mortgage rate as slightly higher than its standard FHA program because of the assistance structure.

CalHFA also offers CalPLUS Access FHA, which can be combined with MyAccess for eligible down-payment or closing-cost assistance.

This is why I don't like looking at down payment in isolation.

The better question is:

How much total cash will I need to successfully complete the purchase?

Then we can determine which combination of the buyer's funds, allowable assistance and potentially seller-paid costs makes sense.

Who Counts as a First-Time Homebuyer?

Here's another misconception.

You don't necessarily have to be buying the first home you've ever owned.

For CalHFA's first-time-buyer programs, CalHFA generally defines a first-time homebuyer as someone who has not owned and occupied their own home during the previous three years and has not lived in a home owned by a spouse during that period, subject to program exceptions.

So someone who owned a home years ago, sold it, and has been renting for more than three years could potentially qualify as a first-time buyer again.

That's worth checking before assuming you're ineligible.

Income Limits Still Apply

CalHFA isn't simply a loan program available to every California buyer regardless of income.

Income limits apply and can vary by program and county.

CalHFA's current 2026 income limits for its first and subordinate mortgages became effective June 30, 2026.

Rather than relying on an old income-limit chart found online, I recommend checking the current limit for the exact program and county when you are ready to apply.

Current CalHFA income limits

Homebuyer Education Is Part of the Process

CalHFA requires qualifying first-time homebuyers using its programs to complete approved homebuyer education and counseling.

CalHFA currently states that only one occupying first-time borrower per transaction must complete the education requirement.

For online education, CalHFA currently accepts its designated eHome course, which includes the required counseling component. Approved live options are also available through qualifying counseling agencies.

I actually consider this valuable.

Buying a home isn't just about getting approved. Buyers should understand the mortgage payment, taxes, insurance, maintenance expenses and responsibilities that come after closing.

Assistance Can Affect the Mortgage Rate

This is one area buyers sometimes overlook.

Down-payment assistance can reduce the amount of money you need upfront, but that doesn't necessarily mean it produces the lowest possible mortgage rate.

CalHFA's official rate sheet shows that rates vary depending on the first-mortgage and assistance combination, and CalHFA specifically describes CalPLUS products as having a somewhat higher rate than its standard first mortgage. Rates can change daily.

As of CalHFA's latest published rate sheet dated September 10, 2026, for example, its conventional first mortgage without CalHFA DPA showed a 6.875% standard rate, while the conventional option with CalHFA DPA showed 7.000%. Those are CalHFA program rates on that specific date—not a PCM quote and not necessarily the rate available when you apply.

For broader context, Freddie Mac reported that the national average 30-year fixed mortgage was 6.76% on September 10, 2026, with the 15-year average at 6.09%. Freddie Mac's figures are national conventional-market averages and should not be interpreted as CalHFA, FHA or individual borrower quotes.

Freddie Mac mortgage-rate survey

The Murrieta Market May Give Buyers More Room to Negotiate

The latest local numbers also deserve attention.

Over the three months ending August 2026, Murrieta's median sale price was approximately $656,565, down 2.0% year over year. Homes were taking about 47 days to sell, and approximately 35.6% of homes had price reductions.

That doesn't mean every seller will negotiate or pay buyer closing costs.

But it does suggest buyers shouldn't automatically approach today's market as though every home will receive ten offers on the first weekend.

A properly structured offer may sometimes include seller concessions where permitted, which could potentially work alongside the buyer's financing strategy.

Compare Assistance With Using Your Own Funds

If you have enough money for your down payment and closing costs, CalHFA isn't automatically the better choice.

We should compare both scenarios.

For example:

Option A: Lower-rate mortgage using more of your own money.

Option B: CalHFA financing using assistance and preserving more of your savings.

The second option could require less cash upfront but potentially produce a higher monthly payment or leave subordinate financing that must eventually be repaid.

Neither is automatically right or wrong.

The correct answer depends on your savings, emergency reserves, income, purchase price and future plans.

Let's Calculate What You Actually Need to Buy

If you're considering buying a home in Murrieta, Temecula, Riverside County or elsewhere in California, don't assume you need tens of thousands of dollars sitting in the bank before talking to a mortgage professional.

And don't assume down-payment assistance is automatically your best option either.

At Premiere Capital Mortgage, we can compare the available structures and show you:

Purchase price → first mortgage → down-payment requirement → available assistance → estimated closing costs → estimated cash to close → estimated monthly payment.

Then you can decide whether buying now makes financial sense.

John F. Lawrence
Premiere Capital Mortgage
Murrieta, California
951-634-9284
PCMloans.net

This article is for educational purposes only and does not constitute a commitment to lend, an interest-rate quote or a guarantee of financing. CalHFA programs, rates, income limits, assistance amounts, fees and underwriting requirements are subject to change. Down-payment assistance may be structured as subordinate financing that must eventually be repaid. Eligibility depends on the borrower, property, lender and applicable program requirements.