What a CHDAP loans is

California Homebuyer's Downpayment Assistance Program (CHDAP)

Most lenders require home buyers to pay at least 20 percent of a home's purchasing price as a down payment to qualify for a mortgage. According to the Mortgage Insurance Companies of America, saving the money for a down payment is for many the biggest obstacle to home ownership. Add to this the closing costs of a mortgage, which can range from 3 to 6 percent of the sale price, and you can see why so many low-income workers struggle to buy their first home.

The CHDAP provides a deferred-payment junior loan – up to 3% of the purchase price, or appraised value, whichever is less, to be used for their down payment and/or closing costs. This program may be combined with a CalHFA or non-CalHFA, first mortgage loan.


Local Housing Development Corporations throughout California provide residents with down payment aid and affordable loans programs. For instance, the San Francisco Housing Development Corp. provides eligible applicants with three down-payment assistance programs: The City Second Loan Program, The Down-Payment Assistance Loan Program and the Extra Credit Teacher Program. The City Second Loan Program offers first-time home buyers of units in selected developments a no-interest, 40-year deferred loan of up to $100,000 or 30 percent of the buying price. The Down-Payment Assistance Loan Program offers first-time home buyers in San Francisco a deferred loan--also called a silent second loan--that requires no payments for 40 years. The principal loan amount and a share of the increase in value of the house must be paid at the end of the loan term, sale or rental of the property. The Extra Credit Teacher Program helps teachers, administrators, staff members and classified employees who work in high-priority schools across California with low-interest loans and down payment assistance grants.