For many hopeful homebuyers in Santa Clara County, the down payment is one of the biggest barriers to homeownership. With median home prices still hovering near the $1.4 million mark in many Silicon Valley communities, even a traditional 20% down payment can feel out of reach. But if you’ve been putting off buying your first home because of this hurdle, there’s good news: 2025 brings several down payment assistance (DPA) programs designed to help buyers in Santa Clara County step into homeownership more affordably.

At RoosterListing, we believe in not just showing you listings but making homeownership accessible. In this guide, we break down what’s available, who qualifies, and how you can take advantage of these local, state, and federal programs.

Why Down Payment Assistance Matters in Santa Clara County

The high cost of real estate in Silicon Valley means many qualified buyers struggle to save the 5-20% typically required for a down payment. Even a 5% down payment on a $1 million home is $50,000, not including closing costs. Down payment assistance programs can bridge this gap by offering grants, deferred-payment loans, or even forgivable loans that reduce your upfront costs.

2025 Down Payment Assistance Programs Available in Santa Clara County

CalHFA MyHome Assistance Program

Offered through the California Housing Finance Agency (CalHFA), the MyHome program continues to be a reliable option for first-time homebuyers statewide, including Santa Clara County.

• What it offers: Up to 3.5% of the purchase price or appraised value (whichever is less) for down payment or closing costs.
• How it works: It’s a deferred-payment junior loan. No payments are required until you sell, refinance, or pay off your first mortgage.
• 2025 update: Income limits for Santa Clara County were raised to $310,000 for a household of up to 2 people and $362,000 for larger households, making it accessible to many middle-income buyers.

Good for: First-time buyers with steady income who need help covering upfront costs.

Santa Clara County Mortgage Credit Certificate (MCC) Program

MCC program can free up cash for buyers. It reduces federal income taxes, which can then be applied toward mortgage payments or savings.

• What it offers: A federal tax credit of up to 20% of your annual mortgage interest.
• How it works: Helps reduce tax liability, leaving you with more monthly cash.
• New allocation funding for MCCs was approved in Santa Clara County this year.

Good for: Buyers who expect to stay in their home long-term and want extra annual tax relief.

Empower Homebuyers SCC (Santa Clara County Down Payment Assistance Loan)

This locally funded program offers direct down payment support specifically for homes purchased within Santa Clara County.

• What it offers: Up to 17% of a home’s purchase price as a shared appreciation loan.
• How it works: No monthly payments. designed to help middle-class families, tech employees, teachers, and first responders plant roots in the communities they serve. When you sell, refinance, or pay off your mortgage, along with a percentage of your home’s appreciated value, the loan is repaid.
• 2025 update: Income limits increased to 120% of area median income (approximately $198,000 for a household of two), expanding eligibility for middle-income households.

Good for: Buyers with steady income and minimal savings looking to reduce their primary mortgage loan amount and monthly payments.

Workforce Housing Programs (Employer-Based Assistance)

Several Silicon Valley tech companies and major employers now partner with housing agencies to offer DPA grants and forgivable loans to their employees.

• What it offers: Varies by employer, often $20,000 to $50,000 in assistance.
• 2025 update: New partnerships with public sector employers. (Like local school districts and healthcare providers) launched in 2025, expanding access beyond tech employees.

Good for: Employees of participating companies, especially educators, nurses, and first responders.

Who Qualifies for Down Payment Assistance?

While eligibility criteria vary, most programs require buyers to:

• Be a first-time homebuyer (defined as not having owned a home in the past 3 years)

• Live in the purchased property as their primary residence

• Fall within program income limits, adjusted for family size and Santa Clara’s cost of living

• Complete an approved homebuyer education course

Some programs, like Empower Homebuyers SCC, also have purchase price limits. For 2025, this cap is $1,500,000 in Santa Clara County.

How to Apply

• Check eligibility for one or more programs based on your income, home price, and residency plans.

• Work with an approved lender many DPA programs require you to use participating lenders trained in these specialized loans.

• Complete a homebuyer education course (online or in-person options available).

• Gather documentation: tax returns, pay stubs, proof of funds, and credit reports.

• Apply early — some funds are limited and operate on a first-come, first-served basis.

Final Thoughts

If you’ve been dreaming of owning a home in Santa Clara County but worried about the steep down payment. 2025’s expanded assistance programs might be your ticket in. These resources aren’t just for the lowest-income buyers. They’re designed to help middle-class families, tech employees, teachers, and first responders plant roots in the communities they serve.