City of Lancaster program

Lancaster CA First-Time Home Buyer Program 2026: $100,000 Deferred Loan Details

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

Short answer

The City of Lancaster, on its live program page, offers a zero-interest deferred second of up to $100,000. You still bring at least 3 percent of the price plus buyer closing costs. The city posted lottery results dated October 8, 2026. A lottery spot is not an approval, and assistance stops when the funding is gone. Confirm that page before you apply. Older flyers that say $150,000 are not the live page. 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

This is the city program only. Palmdale does not run this lottery. CalHFA, FHA, VA, and USDA are on the valley assistance guide. The Spanish overview is programas de enganche.

What the city page says

Zero-interest, deferred-payment second mortgage of up to $100,000.
At least 3 percent from you toward the down payment, plus buyer closing costs.
Lottery order is the review line. Placement is not approval. Funding can run out.
Nine documents. The city says an incomplete package is not accepted, with no exceptions.
Seasoned funds: 90 days, shown on statements, for the down payment and closing costs.

2026 income limits on the city table

Copied from the city page checked October 23, 2026. The city labels these low income, 80 percent of area median, based on 2026 median income for Los Angeles County, effective June 1, 2026. If the city changes the table, the city page wins.

City of Lancaster posted income limits. Not a determination that you qualify.

Household size	80 percent AMI, as posted
1	$93,300
2	$106,600
3	$119,950
4	$133,250
5	$143,900
6	$156,600
7	$165,250
8	$175,900

What this page will not treat as current

Older city brochures described assistance as the lower of 33 percent of the purchase price, the amount needed to keep a 40 percent front end ratio, or $150,000. The live page checked October 23, 2026 states up to $100,000 and does not restate those terms. Verify current terms with the City of Lancaster before you rely on a flyer.

I am Mike Watson, DRE #01712313, Keller Williams in Palmdale, licensed since 2005. I can show you Lancaster houses that might fit a first mortgage under this second. I cannot approve the city loan. Call or text (661) 733-2196. Career figures: 1,213+ closed transactions and $319M+. The as-of date is on the proven track record.

Sources

City of Lancaster First Time Home Buyer Program (Checked October 23, 2026)
City housing contact on that page (housing@cityoflancasterca.gov or 661-723-6000)

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 read the Lancaster first-time buyer program before you shop

The city reviews complete applications in lottery order until the money is gone. Placement is not approval.

Read the live city page, not a 2023 flyer. The page checked on October 23, 2026 says up to $100,000, zero interest, deferred. It also shows a line dated October 8, 2026 for lottery results. Ask whether a new round is open before you order transcripts.
Check the income table for your household size. The city posted 80 percent of area median income limits for 2026, effective June 1, 2026. A household over the line for its size is not in this program.
Build the nine-document package. The city says an incomplete package is not accepted, with no exceptions. Photo ID, tax transcripts, returns, pay stubs, bank statements, and seasoned funds are on that list.
Keep 3 percent plus closing costs in seasoned funds. The city second is extra help. It does not replace your 3 percent or your buyer closing costs. The city asks for 90 days of seasoning on those funds.
Get a first mortgage that can sit under the city loan. This is a second. You still need a first mortgage. Do not assume it stacks with CalHFA. Ask the city and the lender in writing. Palmdale addresses do not use this lottery.

Questions people ask

+Is the Lancaster first-time buyer loan really $100,000?

The live city page says a zero-interest, deferred-payment second of up to $100,000. Up to means the cap. It does not mean every file receives $100,000. Older city brochures described a higher cap of $150,000. Use the page that is up now: cityoflancasterca.org.

+Is the application still open after the October 8, 2026 lottery?

The page shows "October 8, 2026 - Lottery Results." It does not, in the text checked on October 23, 2026, say a new portal is open. Email housing@cityoflancasterca.gov or 661-723-6000 before you assume you can still submit.

+When do I pay the city loan back?

The live page calls it deferred and does not restate the due date, a term of years, or a forgiveness schedule. The live page does not describe a forgiveness schedule. Do not model forgiveness unless the current brochure says it in writing.

+Does the house have to be in the City of Lancaster?

This is a City of Lancaster program. Quartz Hill, Palmdale, Rosamond, and a Lancaster mailing address outside the city limits are the usual misses. The live page does not reprint every geographic rule in the summary. Confirm the parcel with the housing office before you write an offer.

+Can I use it on a manufactured home or with CalHFA?

The live page does not say park homes qualify. Do not plan on it. CalHFA MyHome is a different second on a CalHFA first mortgage. Assume they do not stack until both sides say so in writing. The comparison is on down payment assistance.

+What income qualifies in 2026?

The city table, labeled low income at 80 percent of area median for Los Angeles County and effective June 1, 2026, runs from $93,300 for one person to $175,900 for eight. Confirm the row for your household on the city page. A raise between application and closing can matter. Ask the city.

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