3 of the Best First-Time Home Buyer Grants & Programs in California

Living in California has its perks -- good weather, great beaches -- but buying your first home in the Golden State can be tough. After all, this is the most populous state of all 50 with roughly 39 million people calling it home, and its average home value is more than double the national average: $741,790 versus $348,100, according to Zillow.

It's a challenge, but first-time home buyers can find some relief through specialty programs that lower the amount of down payment you need or help you with closing costs. If you need some help buying your first home in Cali, let's take a look at three of the top first-time home buyer programs in the Golden State.

1. Forgivable Equity Builder Loan

What is it? A forgivable loan that gives home buyers up to 10% of the home's purchase price. The loan is forgiven after five years, as long as you live in the home as a primary residence.

How does it help? This is perhaps one of the most generous loan programs available. As long as you meet requirements, you can get up to 10% of your home's purchase price -- essentially a 10% down payment -- as a loan that can be forgiven after five years. Once the five years are up, you'll have 10% of your home's equity.

Who's it for? First time home buyers who plan to occupy the home as a primary residence and complete a home buyer education course. Applicants must also meet income requirements.

2. MyHome Assistance Program

What is it? A deferred loan that helps you with closing costs or down payment. You can receive up to 3.5% of the purchase price or appraised value (whichever is less) if you're financing with a government loan (FHA), or up to 3% on a conventional loan.

How does it help? The program can help you put more money down or pay closing costs. The loan doesn't have to be repaid immediately, only when the home is sold or refinanced or the first mortgage is paid off. The loan does accrue interest, however.

Who's it for? First-time home buyers who plan to occupy the home as a primary residence and who have completed a home buyer education counseling course. Applicants also have to meet certain income limits to qualify and the home must meet property requirements.

3. CalHFA Zero Interest Program

What is it? A second mortgage that offers up to 3% of your first mortgage in closing cost and down payment assistance.

How does it help? Like MyHome Assistance, the Zero Interest Program gives you a deferred loan to help you cover necessary costs with buying your first home. The difference, however, is that this loan doesn't accrue interest. You'll pay the loan if you sell, refinance, or pay off your first mortgage, but you won't have to pay any more than what you borrow.

Who's it for? First-time home buyers and disaster victims who are buying a principal residence.

Still need help buying your first home?

If you're interested in the programs above, reach out to a local mortgage lender and see if they offer them. You can also check out federal first-time home buyer programs, as well as low- or no-down-payment mortgages, such as:

• FHA
• VA
• USDA

These programs can help qualified home buyers finance homes with mortgages that have lower barriers to entry, such as lower credit score and down payment requirements. Better yet, you can use these loans with any of the programs mentioned above. It may not make homes in California cheaper, but a combination of these two can certainly bring homeownership within reach.