FHA Closing Cost Grant — California

Up to $10,000 in Free Closing Cost Assistance

A true grant — no repayment, no second lien, no tax implications. Available on FHA loans in select California counties, including Orange County.

$10K Maximum Grant
$0 Repayment Required
FHA Loan Type
13 CA Counties Eligible
About This Program

What Is the FHA Closing Cost Grant?

Many buyers can qualify for a home loan but struggle to cover the out-of-pocket costs at closing. This grant program was designed specifically to solve that problem — providing up to $10,000 in closing cost assistance to eligible buyers purchasing with an FHA loan in qualifying California counties.

✅ It's a True Grant

Unlike a forgivable loan that requires a waiting period, this is a genuine grant. The funds are forgiven immediately at closing — there is no repayment requirement, ever. No second lien is placed on your property, and there are no tax implications.

🏡 Paired with an FHA Loan

The grant is layered onto an FHA purchase loan, which requires just 3.5% down. Together, these two programs can dramatically reduce the total cash you need to bring to the table on closing day.

📍 Location-Specific Eligibility

The grant is available in select California counties covered by the program's Community Reinvestment Act (CRA) assessment areas. Orange County — Jason's primary market — is eligible, along with 12 other California counties.

🔄 Not Just for First-Time Buyers

You don't need to be a first-time homebuyer to qualify. This program is open to anyone purchasing a primary residence in an eligible county — with one important restriction: you cannot own other residential property at the time of closing.

Grant Uses

What Can the Grant Cover?

Grant funds are applied toward your closing costs — not the down payment itself. Here's what they can be used for:

📄

Closing Costs

Title fees, escrow, underwriting, origination — the expenses that add up fast at the closing table.

🗓️

Prepaid Taxes & Insurance

Upfront property tax and homeowner's insurance deposits required at closing.

📉

Discount Points

Use grant funds to buy down your interest rate and lower your monthly payment.

🛡️

FHA Upfront Mortgage Insurance (MIP)

Cover the FHA upfront MIP premium, a 1.75% one-time fee required on all FHA loans.

Note: Grant funds are applied toward closing costs and cannot be used to cover the 3.5% FHA minimum down payment. The actual grant amount will depend on your total closing costs, up to a maximum of $10,000.

Eligibility Requirements

Do You Qualify?

The grant program has straightforward eligibility requirements. Review the checklist below to see if you're a fit.

✅ Requirements to Qualify

  • Purchasing a primary residence with an FHA loan
  • Property located in an eligible California county
  • Owner-occupied purchase (you will live there)
  • Minimum LTV of 80% (standard for FHA at 3.5% down)
  • No current ownership interest in another property
  • First-time and repeat buyers welcome
  • Eligible property types: SFR, 2–4 units, PUDs, FHA-approved condos

❌ Who Cannot Use This Grant

  • Refinance transactions (purchase only)
  • Buyers who currently own other residential property
  • Non-owner-occupied or investment purchases
  • Properties outside eligible counties
  • Conventional, VA, or USDA loans (FHA only)
  • Non-occupant co-borrowers
  • New condominium construction projects
Geographic Eligibility

Eligible California Counties

The grant is available to buyers purchasing in any of the following California counties. Orange County — including cities like Irvine, Anaheim, Huntington Beach, and Newport Beach — is fully eligible.

⭐ Orange
Los Angeles
Riverside
San Bernardino
San Diego
Ventura
Contra Costa
Napa
Placer
Sacramento
San Francisco
San Mateo
Santa Clara

Program availability is subject to change. Contact Jason to verify current eligibility for your specific property address.

The Process

How to Access the Grant

The grant is applied automatically at closing — there's no separate application. Here's how the process works.

1

Schedule a Quick Call

Connect with Jason to confirm you and your target property are eligible for the grant program.

2

Get Pre-Approved

Apply for an FHA loan. Jason will structure your file to include the grant from the start.

3

Shop with Confidence

Know exactly how much grant money you have toward closing before you make an offer.

4

Close & Keep It

At closing, grant funds are applied to your costs and immediately forgiven. No lien, no payback — ever.

Why Work with Jason

An Expert Who Knows These Programs Cold

Most lenders won't take the time to layer grant programs onto an FHA loan. Jason does — because he's a broker with access to these programs and the experience to structure them correctly.

Orange County Specialist

Jason is based in Orange County and knows the local market, eligible areas, and which programs apply to the neighborhoods you're shopping in.

Broker — Not a Bank

As an independent broker, Jason shops multiple lenders to find the best FHA rate for your situation, then layers the grant on top.

NMLS Licensed

Licensed in California and 9 other states. NMLS #1368625. Arbor Financial Group. Transparent, compliant, experienced.

Guidance from Start to Close

Jason walks you through every step — from confirming eligibility to structuring your loan so the grant is applied correctly at closing.

Common Questions

FHA Closing Cost Grant FAQ

Does the $10,000 grant really never have to be repaid?
Correct. This is a true grant, not a forgivable loan. The funds are forgiven immediately at closing — there is no waiting period, no lien recorded against your home, and no repayment obligation at any point in the future. There are also no tax implications for the recipient.
Can I use the grant for my down payment?
No — the grant is designated for closing costs, not the 3.5% FHA minimum down payment. You'll need to bring the down payment from your own funds or another approved source. However, by covering closing costs with the grant, you free up your savings for the down payment, making it easier to qualify.
Do I have to be a first-time homebuyer?
No. This grant is available to first-time and repeat buyers alike. The one key restriction is that you cannot own any other residential property at the time of closing — so if you currently own a home, you would need to sell it before using this program.
How do I know if my property is in an eligible county?
The eligible California counties include Orange, Los Angeles, Riverside, San Bernardino, San Diego, Ventura, Contra Costa, Napa, Placer, Sacramento, San Francisco, San Mateo, and Santa Clara. If your target home is in any of these counties and meets FHA property requirements, you're likely eligible. Contact Jason to confirm your specific address.
Can I combine this grant with other down payment assistance programs?
The grant is applied as a lender credit and is subject to FHA's interested party contribution (IPC) limits of 6%. It cannot be stacked with most other assistance programs simultaneously. Jason can help you evaluate which combination of programs provides the most benefit for your situation.
What types of properties qualify?
Eligible property types include single-family residences (SFR), 2–4 unit properties (primary residence), planned unit developments (PUDs), and FHA-approved condominium projects. New condominium construction projects are not eligible.
Can I use this grant more than once?
No — the grant may only be used once per borrower. It's designed to help homebuyers who have not previously benefited from the program get into homeownership, and cannot be used again on a subsequent purchase.

Find Out If You Qualify for the $10K Grant

It takes a few minutes to check eligibility. Jason will review your situation and let you know exactly how much you qualify for.

Jason Barlow | NMLS #1368625 | Arbor Financial Group | Licensed in CA, AZ, CO, FL, IL, MN, OR, WI, WA, AL
Grant programs are subject to change, availability, and lender approval. Not all applicants will qualify. Grant amount based on actual closing costs up to program maximum. Property must be located in an eligible CRA assessment area. FHA loan required. Equal Housing Lender.
This is not a commitment to lend. Terms and conditions subject to change without notice.

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