The Homebuyer’s Corner
What Is the Azusa CalHome Down Payment Assistance Program?
Written by Armando Novelo, NMLS 237243, a mortgage loan officer in West Covina with over 20 years of experience helping Southern California buyers.
The City of Azusa offers a down payment assistance program for first-time homebuyers through the state CalHome Program. Eligible buyers can receive a deferred-payment loan of up to $100,000 toward the purchase of a home within Azusa city limits. The loan has no monthly payment, and unlike a standard deferred loan that comes due entirely at sale, this one has a partial forgiveness structure built in that most buyers never hear about until they sit down with someone who has actually reviewed the program guidelines.
The City of Azusa runs this program in partnership with the California Department of Housing and Community Development, known as HCD. The funding comes from the state CalHome grant, which is why you will sometimes see the program referred to as the Azusa CalHome Program.
How the Azusa CalHome Loan Actually Works
The assistance comes in the form of a deferred-payment second mortgage. No monthly payments are required on the CalHome loan while you are living in the home. The full loan amount becomes due when you sell the property, transfer title, or no longer occupy it as your primary residence.
Here is the part that sets this program apart from most city assistance programs. The loan has a 20-year term and a built-in forgiveness structure that begins at year 11. Starting in year 11, 10 percent of the original principal is forgiven for each additional year that you own and continuously occupy the home. That means if you stay in the home for 20 years, the loan is fully forgiven at the end of the term.
In practical terms this means the longer you stay the less you owe. A buyer who receives $100,000 in assistance and stays 15 years would have 50 percent of the loan forgiven by that point. A buyer who sells after 8 years owes the full balance. The structure rewards long-term homeownership, which is exactly the intent of the program.
This is meaningfully different from the shared appreciation structure of programs like La Puente and California Dream For All, where the City takes a percentage of your equity growth at sale. The Azusa CalHome program does not share in your appreciation. It simply defers repayment of the original principal, then forgives it progressively the longer you stay.
Who Qualifies
The CalHome program is designed for low-income first-time homebuyers. Household income must not exceed 80 percent of the Los Angeles County area median income adjusted for household size. That threshold is lower than the income range for programs like West Covina's HAP or La Puente's assistance program, which both extend up to 150 percent AMI. CalHome is specifically targeted at households with more modest income levels.
First-time buyer status is required, meaning no ownership interest in residential property during the past three years.
HUD-approved homeownership counseling is required as part of the application process. We covered what that involves and how to complete it in this article, in the section explaining which programs require it.
The property must be located within Azusa city limits and must be your primary residence. The program also covers owner-occupied rehabilitation loans up to $100,000 for existing homeowners who need to make improvements to their property, though that is a separate application track from the purchase assistance.
A fixed-rate first mortgage is required. The CalHome loan sits behind it as a second lien.
What the Approval Process Involves
The City of Azusa administers this program directly and the application process includes participant eligibility review, property eligibility requirements, underwriting review, homebuyer education verification, and occupancy requirements. Each of those has documentation requirements and the program is not set up to accommodate incomplete submissions.
Funding is available on a first-qualified, first-served basis through the state HCD grant allocation. City programs like this can exhaust their current funding cycle and go dormant until new grant funding is awarded. Confirming current availability before you begin shopping for a home is essential. Contact the City of Azusa directly at 626-812-5200 to verify program status and request application materials.
I worked with a buyer in Azusa who had been renting in the Foothill area for four years and had never heard about this program. Her income fell just under the 80 percent AMI threshold and she qualified on the first review. The documentation process took time to organize but once we submitted a complete packet the approval came through cleanly. She used the CalHome loan alongside an FHA first mortgage and closed with significantly less out of pocket than she expected. What surprised her most was learning that if she stays in the home past year 10, the loan starts disappearing on its own.
How This Compares to Other SGV Assistance Programs
Azusa's CalHome program occupies a specific niche in the SGV assistance landscape. The $100,000 maximum is substantial but the income threshold at 80 percent AMI is stricter than some of the other city programs in the valley. It is built for buyers who genuinely need the help most, not just buyers who earn a working income but struggle to save.
The partial forgiveness structure starting at year 11 is the feature that makes it genuinely attractive for long-term homeowners. Programs with shared appreciation clauses require you to share your equity growth when you sell. This one does not. If you stay long enough, the debt goes away entirely.
For buyers who are evaluating multiple assistance options across different SGV cities, the right comparison comes down to income limit eligibility, how long you plan to stay, and whether a forgiveness structure or a shared appreciation structure fits your long-term plan better. That is a conversation worth having with a lender before you commit to any one program. We covered how the different program structures compare in this article, specifically in the section explaining silent second loans versus shared equity programs.
And for a broader view of what is available to first-time buyers across the SGV right now, this article covers the full landscape, in the section on city-level programs.
Armando Novelo, NMLS 237243, is a mortgage loan officer at Super Mortgage Bros, powered by Golden Empire Mortgage. He has been helping Southern California buyers and homeowners since 2002. His office is located in West Covina, CA.
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Article Published: July 28, 2026
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Armando Novelo
NMLS 237243
Super Mortgage Bros
1900 W. Garvey Ave S. #100
West Covina, CA 91790
Phone: (626) 200-1838
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