A buyer texted me this week with two great questions. What tax credits or incentives are there for first-time buyers in California? And if she buys with someone who has also never owned, do they still qualify?
A lot of what's online describes programs that ran out of money years ago, so here's what is actually available right now in LA.
01 · Tax creditsWhat helps at tax time
Mortgage Credit Certificate (MCC) LIMITED FUNDS
The one real tax credit, and almost nobody has heard of it. An MCC turns 15 to 20 percent of the mortgage interest you pay into a federal tax credit, every year you have the loan. A credit comes straight off your tax bill, which beats a deduction. Funding is limited, and selling within nine years can trigger a recapture tax in some cases.
Bigger federal deductions AVAILABLE
The cap on deducting state and local taxes, including property tax, jumped from $10,000 to $40,000 for 2025 through 2029. Mortgage insurance is deductible again starting in 2026 for households under about $100,000. Both only help if you itemize, so have your CPA run it both ways.
The $15,000 federal credit NOT LAW
You may have seen headlines. It's a proposal stalled in Congress, so don't wait on it.
02 · Down payment helpWhere the bigger money is
CalHFA MyHome OPEN
A deferred loan of up to about 3 percent for down payment and closing costs, paired with a CalHFA first mortgage. Works anywhere in California. Repaid when you sell or refinance.
CalHFA Dream For All CLOSED FOR 2026
Up to 20 percent of the price (max $150,000) in exchange for a share of your future appreciation. The 2026 lottery closed in March, so watch for a 2027 round. At least one buyer must be first generation.
City of LA: LIPA and MIPA LIMITED ROUNDS
0 percent deferred loans of up to $161,000 (lower income) or $115,000 (moderate income) for homes inside City of LA limits. Reservations open a few times a year and go fast.
LA County HOP FIRST COME, FIRST SERVED
A 0 percent deferred loan of up to $100,000 or 20 percent of the price in unincorporated LA County and participating cities. Requires an eight hour homebuyer class.
GSFA Platinum OPEN
Up to 5.5 percent toward down payment and closing costs, and you don't have to be a first-time buyer.
03 · Buying togetherWhat if you buy with someone else?
Good news here. "First-time buyer" usually just means you haven't owned a home you lived in during the past three years. If neither of you has, you both qualify, and CalHFA actually requires that every borrower be first-time. A few things to know:
- Your incomes get added together, which can push you over some program limits.
- You both need to live there for most programs. A parent co-signing from their own home won't work with CalHFA.
- You both need to qualify on credit.
- If one of you owned within the last three years, GSFA Platinum is still an option.
- Not married? Put it in writing. Agree on how you'll hold title and what happens if one of you wants out.
04 · My takeHow I'd approach it
Start with a lender who is approved for CalHFA, GSFA, City of LA and LA County programs, because only approved lenders can submit these applications. Find out what you qualify for before you pick neighborhoods, since location decides which programs apply. And run the numbers on any shared appreciation loan, because in a rising market it can cost more than it looks.
Want to know which programs you qualify for?
Send me your rough household income and the areas you're looking at, and I'll point you in the right direction.
Call or text 310.363.1416 Browse homes05 · FAQQuick answers
Is there a first-time homebuyer tax credit in California in 2026?
No. The closest thing is a Mortgage Credit Certificate, a yearly federal credit on part of your mortgage interest.
Can two first-time buyers buy together and still qualify?
Yes. Both of you usually need to live in the home, and your combined income has to fit the limits.
What if one of us owned a home before?
More than three years ago usually still counts as first-time. More recently, look at GSFA Platinum.
Is Dream For All open?
Not right now. The 2026 round closed in March.
Jeremiah Vancans · Vancans Group at Compass · DRE #01944484 · 310.363.1416
Program details and funding change often. This is general information as of November 2026, not tax, legal or lending advice. Confirm current terms with an approved lender and your tax professional.