First-time buyers in the Antelope Valley

Down Payment Assistance in Lancaster and Palmdale (2026)

By Mike Watson, Realtor, DRE #01712313. Updated September 2026.

Short answer

Lancaster reopened its First-Time Home Buyer Program on September 28, 2026. The city offers a zero-interest deferred second of up to $100,000. You still bring at least 3% down plus your own closing costs. Only the first 30 complete applications enter a lottery, and a lottery spot is not an approval. CalHFA MyHome is the year-round state option. Dream For All is not taking new registrations. This is not a loan quote.

Talk to Mike

Call or text (661) 733-2196

Mike follows up personally. You get the same agent who writes the offer, not a junior handoff.

mike@avwatson.com

Most Antelope Valley buyers do not need 20% down. They need the right program for the house they can actually insure, and they need to know which help is open this month. Lancaster's city program is open again. Palmdale buyers are usually on CalHFA, FHA, VA, or conventional. Dream For All is a 2026 story only if you already hold a voucher.

The programs, side by side

Checked against the agency pages on September 29, 2026. "Up to" means the cap, not a promise you will be awarded the cap.

Program	What it is	Cash you still bring	Status in the AV
Lancaster FTHB	Zero-interest deferred second, up to $100,000	At least 3% of the price, plus buyer closing costs	Open Sept 28, 2026. First 30 complete applications, then a lottery. City of Lancaster only.
CalHFA MyHome	Deferred simple-interest second. Up to 3.5% on FHA, or 3% on conventional, VA, or USDA, of price or value, whichever is less.	MyHome can cover down payment and closing costs. You still need reserves the lender asks for. It is not zero interest. The public rate sheet showed 1% in September 2026.	Year-round, through a CalHFA-approved lender, on a CalHFA first mortgage.
Dream For All	Shared appreciation, up to 20% and not over $150,000	Depends on the voucher and the first mortgage	2026 portal closed March 16, 2026. Vouchers went to applicants. Not a new registration.
LACDA HOP	Deferred second with shared equity, up to $100,000 or 20% of price, whichever is less	At least 1% from the buyer, not counting closing costs	Unincorporated L.A. County and participating cities. Do not assume Lancaster or Palmdale is on the list.
FHA	First mortgage. 3.5% minimum down with a 580 credit score. 10% down if the score is 500 to 579. Lender overlays are often stricter.	Down payment plus closing costs, unless a second or a seller credit covers part	Works on most site-built houses and on some manufactured homes that are real property.
VA	First mortgage. 0% down with entitlement. Funding fee unless you are exempt. The fee can often be financed.	Often just closing costs	The usual loan for Edwards and veteran Plant 42 buyers. The house still has to pass the VA appraisal.
USDA	First mortgage. 0% down in an eligible rural area, with income caps	Often just closing costs. The guarantee fee is usually financed.	Address-level. A Palmdale or Lancaster city name does not answer it.
Conventional 3%	First mortgage. Standard first-time minimum is often 3%, not 20%	3% plus closing costs. Mortgage insurance until you have equity.	Open. No lottery. Income limits depend on the product, not on a city drawing.

Cash to close on a $400k, $450k, or $500k house

These rows are illustrations for a stick-built house with no seller credit, no gift, and no assistance award. They are not a Loan Estimate. Closing costs move with the lender, the title company, and the rate. Use the cost sheet on this site for a specific address.

Price	3% conventional down	3.5% FHA down	Plus typical buyer costs	Lancaster program, if awarded
$400,000	$12,000	$14,000	About $8,000 to $12,000	You still bring the 3% ($12,000) and your closing costs. The city second is extra help, not a replacement for the 3%.
$450,000	$13,500	$15,750	About $9,000 to $13,500	Same rule. Up to $100,000 does not mean the file gets $100,000.
$500,000	$15,000	$17,500	About $10,000 to $15,000	A max award would be 20% of this price. The city can award less, or nothing, after the lottery.

VA with full entitlement and USDA on an eligible address can show $0 on the down-payment line. Budget the closing-cost column anyway unless the seller is paying it. A disabled veteran who is exempt from the VA funding fee is in a different file than a first-use buyer who finances the fee. Ask the lender which one you are.

Lancaster's program, in the city's own words

On September 28, 2026 the city posted that it is accepting the first 30 complete applications for a zero-interest, deferred-payment second of up to $100,000. You contribute at least 3% toward the down payment and you must have the cash for buyer closing costs. One week after the portal closes, an auditable lottery sets review order. The city publishes results by PIN. Names stay off the website. Funding stops when the money is gone. Housing staff: housing@cityoflancasterca.gov or 661-723-6243.

Low income, 80% of area median. City of Lancaster table, 2026 median income for Los Angeles County, effective June 1, 2026.

Household size	Income limit
1	$93,300
2	$106,600
3	$119,950
4	$133,250
5	$143,900
6	$156,600
7	$165,250
8	$175,900

A 2023 city news post described assistance up to $150,000 or 40% of the price, a $570,000 price cap, and forgiveness after year six. That is not the page that went live with this reopening. If a lender quotes the old cap, open the current city page next to the loan estimate. The document list on the current page is specific: three years of returns and transcripts, three months of stubs and statements, and 90 days of seasoned funds.

CalHFA MyHome, and why it is not the Lancaster loan

MyHome is statewide, including Los Angeles County and Kern County. On an FHA CalHFA loan it is up to 3.5% of the price or the appraised value, whichever is less. On conventional, VA, or USDA it is up to 3%. Payments are deferred until you sell, transfer, refinance, or pay off the first mortgage. It accrues simple interest. CalHFA's public rate sheet listed MyHome at 1% when checked in September 2026. Combined loan-to-value cannot exceed 105%. You have to be a first-time buyer, live in the house, use a CalHFA first mortgage, and finish homebuyer education. CalHFA does not lend to you directly. A CalHFA-approved lender does.

On a $450,000 FHA purchase, 3.5% is $15,750. That is the assistance cap for MyHome on that price, not a check for $100,000. People mix the two programs up because both are called down payment help. The city loan is the large one, and it is a lottery inside Lancaster. MyHome is the smaller one, and it is how most of my Palmdale and Quartz Hill first-time buyers actually close when they want a deferred second.

Dream For All in Los Angeles County

Dream For All can be the largest state check: up to 20% of the price, capped at $150,000, repaid with a share of the appreciation when you sell or pay off the first mortgage. One borrower has to be a first-generation homebuyer. All borrowers have to be first-time buyers. One borrower has to live in California now. Income has to fit CalHFA's Dream For All county table, which is a different table from MyHome and a different table from Lancaster. The application period is closed. If you applied, log into the voucher portal. If you did not apply, do not pause a 2026 purchase waiting for a round CalHFA has not opened.

Moderate-income borrowers repay the original loan plus the same percentage of appreciation. CalHFA's own example: a 20% Dream For All loan means you repay that loan plus 20% of the appreciation. Borrowers at or under 80% of area median can have a reduced share. Read the examples on calhfa.ca.gov/dream before you treat it as a grant. It is not a grant.

Los Angeles County HOP, and where it does not reach

LACDA's Home Ownership Program, HOP80 and HOP150, is a deferred second with shared equity, up to $100,000 or 20% of the price, whichever is less. The agency page updated the income guidelines effective August 24, 2026. A 4-person household was listed at $133,250 for 80% of area median and $162,150 for 150%. You generally cannot have owned a home in the last three years, you occupy the house, and you put in at least 1% of your own money, not counting closing costs. Eligible locations are unincorporated Los Angeles County and participating cities. Lancaster has its own city program. Palmdale is an incorporated city. Check the eligible-location list on lacda.org with the lender. A Lancaster mailing address in unincorporated county is not the same as a house inside the city, and the reverse is also true.

LACAHSA, the county's newer housing agency, has discussed a separate down payment product for later in 2026. That is a proposal with a launch target, not a portal you can use today. Do not spend the money in your head.

Who this fits, and who it frustrates

The Lancaster lottery fits a household that is already documented: tax transcripts, seasoned savings, and a house inside the city under the income cap. It frustrates anyone who hears "$100,000 free" and has a week to write an offer on a Palmdale house. Palmdale, Quartz Hill, and Rosamond are not in that drawing.

VA fits buyers with entitlement who can accept the appraisal and the condition rules. It frustrates buyers who need the seller to paint, reroof, and replace the HVAC before a government appraiser will sign off, on a house priced like a retail flip. USDA fits income-qualified buyers on an eligible map. It frustrates anyone who picked a west Palmdale ZIP because a friend said the whole valley is rural. FHA fits credit that is not conventional-clean and a house that can pass the appraisal. Conventional 3% fits buyers over the assistance income caps who still should not drain a 20% down payment.

I have closed 1,210+ transactions in this valley since 2002. The file that falls apart is the one that picks the program after the offer, or picks the house outside the map. Call or text (661) 733-2196 before you write. If you want the same page in Spanish, use the enganche guide.

Sources

City of Lancaster, First Time Home Buyer Program (page checked September 29, 2026; program reopened September 28, 2026)
CalHFA Dream For All (portal closed March 16, 2026; voucher update May 20, 2026)
CalHFA MyHome Assistance Program (program page and May 2022 handbook still cited by CalHFA; rate sheet checked September 2026)
LACDA Home Ownership Program (income guidelines effective August 24, 2026)

This is general information from a local Realtor, not legal, tax, or lending advice. Dollar amounts, income limits, rates, and lottery status change. Confirm the current rules with the agency and a licensed lender before you write an offer or rely on a payment.

How to use the Lancaster first-time buyer program

The City of Lancaster is taking the first 30 complete applications, then drawing a lottery for review order. A spot in line is not a loan approval.

Check the city limit and the income table. The house has to be in the City of Lancaster, not just a Lancaster mailing address. Household income has to fit the 80% of area median table the city posted for 2026.
Build a complete package. The city lists nine items, including photo ID for every adult, three years of tax returns and official transcripts, three months of pay stubs, three months of bank and asset statements, and proof of seasoned funds for your 3% and closing costs. The city says an incomplete package is not accepted. There are no exceptions.
Submit while the portal is inside the first 30. Applications go through the Neighborly Software portal on the city website. The portal closes automatically once 30 complete applications are in.
Wait for the PIN and the drawing. You get a private identification number. One week after the portal closes, the city runs an auditable lottery and publishes placement by PIN only, not by name.
Get a first mortgage that can sit under the city second. The city loan is a deferred second. You still need a first mortgage, at least 3% of the price from you, and enough cash for buyer closing costs. Lottery order is the review line until the money is gone.

Questions people ask

+How much do I need to buy a house in Palmdale in 2026?

On a $400,000, $450,000, or $500,000 Antelope Valley house, a conventional 3% down payment is $12,000, $13,500, or $15,000. FHA at 3.5% is $14,000, $15,750, or $17,500. Buyer closing costs often add about 2% to 3% before any seller credit. VA and USDA can be zero down when you and the property qualify, and the cash need is then mostly closing costs. Palmdale does not have Lancaster's city second. Run the address on the buyer cost sheet. These are illustrations, not a quote.

+Does Lancaster still have a down payment program?

Yes, as of September 28, 2026. The City of Lancaster reopened the First-Time Home Buyer Program that day: a zero-interest deferred second of up to $100,000, a 3% buyer contribution, and a lottery of the first 30 complete applications. Read the live page at cityoflancasterca.org before you apply. Older flyers described a higher cap. Use the page that is up now.

+What is CalHFA Dream For All in Los Angeles County?

Dream For All is a CalHFA shared-appreciation loan for first-generation homebuyers, up to 20% of the price and not over $150,000, paired with a Dream For All conventional first mortgage. The 2026 registration portal closed March 16, 2026. CalHFA said on May 20, 2026 that the next round of vouchers had been released to people who already applied. It is not an open application. Los Angeles County buyers use the same statewide program. Check calhfa.ca.gov/dream if you already have a portal login.

+Can I use down payment assistance on a manufactured home?

Sometimes, and often no. The Lancaster city page does not say park homes or manufactured housing qualify. FHA, VA, and USDA can finance some manufactured homes that are real property on a permanent foundation and meet that program's property rules. Chattel loans on park homes are a different product and usually cannot use these seconds. Ask the city housing office and the lender before you spend money on an inspection. See the manufactured home guide.

+Is USDA or FHA the better loan in the Antelope Valley?

USDA is 100% financing for income-qualified buyers when the address is in an eligible rural area. FHA is 3.5% down in cities and in rural areas, with mortgage insurance. A west Palmdale tract is often an FHA or conventional file, not USDA. Parts of the east valley, Rosamond, and unincorporated pockets can be USDA. Eligibility is the address, not the city name. The ZIP market pages on this site flag USDA when that ZIP is eligible. Income caps still apply.

+Can I stack the Lancaster program with CalHFA?

Do not plan on it. Lancaster's loan wants second position. CalHFA MyHome also wants second position on a CalHFA first mortgage, and the combined loan-to-value cap on MyHome is 105%. Dream For All is its own first-mortgage program, not a second you add to a city loan. Assume the programs do not stack until the city and a CalHFA-approved lender both say, in writing, that this file can.

+Who does not qualify for the Lancaster program?

Households over the posted income limits, buyers who cannot document the 3% plus closing costs with seasoned funds, incomplete applications, and buyers whose house is outside the city. Lottery placement itself is not approval. The live page does not restate every rule from older PDFs, including how the city defines a first-time buyer this round. Ask housing@cityoflancasterca.gov or 661-723-6243 before you order transcripts.

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