One of the biggest barriers to buying a first home in Chico CA is the down payment. Even at Chico’s relatively accessible price points compared to coastal markets, coming up with 10–20% of a $450,000 home is a significant lift for most first-time buyers. The good news is that there are real programs designed to bridge exactly that gap.
CalHFA MyHome Assistance Program
This is the flagship California down payment assistance program for first-time buyers. MyHome provides a deferred-payment, low-interest loan that can be used toward your down payment or closing costs. You pay it back when you sell, refinance, or pay off your first mortgage — meaning it doesn’t add to your monthly payment now. Income limits apply and are based on county and household size, so verify current limits with a CalHFA-approved lender.
CalHFA Zero Interest Program
ZIP is specifically designed to cover closing costs, which are a separate hurdle from the down payment that first-timers sometimes forget to account for. It works in conjunction with CalHFA’s first mortgage products and charges zero interest on the deferred amount.
FHA Loans — Still a Strong Option
FHA financing requires as little as 3.5% down for buyers with qualifying credit scores, and the standards for credit and debt-to-income ratios are more flexible than conventional loans. For first-time buyers still building their financial profile, FHA can be the difference between buying now and waiting years to save more. The tradeoff is mortgage insurance, which adds to your monthly cost.
VA Loans — If You’ve Served
If you’re a veteran or active-duty military, a VA loan should be your first conversation. Zero down payment, no private mortgage insurance, competitive interest rates, and flexible qualification standards. Chico has a meaningful veteran community, and I work with VA buyers regularly.
USDA Loans — For Some Rural Adjacent Areas
For buyers open to properties just outside Chico’s city limits in qualifying rural areas, USDA loans offer zero-down financing. Some Butte County locations adjacent to Chico qualify. It’s worth checking if you’re open to a slightly more rural setting.
I’m Brandon K. Clark, Realtor with Century 21 Select Real Estate, Inc. (DRE# 01949153). Not every lender is equally fluent in these programs. I keep a short list of local lenders who know CalHFA cold. Reach out and I’ll connect you with the right person.
Brandon K. Clark, Realtor | B.S. in Management
Century 21 Select Real Estate, Inc. | DRE# 01949153