3 Contracts, 2 Fall-Outs, and One Perfect Home With CalHFA Down Payment Assistance

Buying your first home can feel out of reach, especially when you’re trying to figure out how much you need upfront.

Many buyers assume they need a large down payment, but that’s not always the case.

I’m Amy DeBusk, a Branch Manager with over 25 years of experience, and I’ve helped many buyers use programs like CalHFA to make homeownership possible sooner than they expected.

In this post, I want to walk you through a real success story and what it shows about buying a home with down payment assistance in California.

The Truth About Buying a Home in California Right Now

It’s Common to Write More Than One Offer

Tyler and Elizabeth did everything right.

They got pre-approved, started shopping, got into contract, and were moving forward. Getting pre-approved early gives you a clear understanding of what’s possible before you start making offers.

Then the inspections came in, and the home revealed issues that could have become major expenses later.

This is something I want every first-time buyer to understand:

Falling out of contract is not failure.
It’s protection.

Especially when you’re buying a home, you want to go into it with confidence, clarity, and long-term peace of mind.

The Situation: Starting Point

Like many first-time buyers, this client wasn’t sure how to bridge the gap between saving for a down payment and actually moving forward.

They had questions about:

• how much they needed upfront
• what programs were available
• and whether buying was realistic

This is a very common starting point for buyers exploring CalHFA programs.

The Challenge

One of the biggest challenges was understanding how to structure the purchase using available assistance programs.

Many buyers assume they need a large down payment, when in reality, programs like CalHFA can significantly reduce upfront costs.

The key was identifying the right combination of loan and assistance options.

Contract #1: The Inspection Revealed Major Plumbing Concerns

Tyler and Elizabeth got into contract on their first home, and the excitement was real.

But once the home inspection came back, there were serious issues, including:

• Old pipes
• Pipes reportedly wrapped around a tree
• A situation that could have turned into a very expensive repair after closing

At that point, the decision was simple.

They chose to walk away instead of stepping into an expensive unknown.

That was a smart move.

Contract #2: Unsafe Chimney and Sellers Would Not Negotiate

Tyler and Elizabeth stayed focused and got into contract again, but this time the issue wasn’t plumbing.

It was the chimney.

The inspection revealed the chimney was unsafe and needed repairs, and the numbers only made sense if the sellers were willing to help. Tyler and Elizabeth needed a larger credit to cover the repair costs and keep the deal financially safe.

Here’s what they were facing:

• Chimney flagged as unsafe during the inspection
• Repairs needed to avoid a future safety and liability issue
• They needed about a $20,000 seller credit to make the deal work
• One of the sellers refused to negotiate on price or offer support

So once again, they made the smart decision to walk away.

That takes discipline and emotional control, especially when you’re already imagining yourself in the home. But this is exactly how successful buyers protect their finances, avoid getting trapped in a bad deal, and stay positioned for the right opportunity when it shows up.

Contract #3: The One That Was Meant to Be

FHA + CalHFA Down Payment Assistance + A Permanent Rate Buydown

After two contracts falling out, a lot of people would start to feel discouraged.

Tyler and Elizabeth did not.

They kept going.

And the third home was the one.

They purchased their first home in Citrus Heights, CA using:

• FHA first mortgage
• CalHFA Down Payment Assistance (DPA)
• A permanent rate buydown so their payment stayed comfortable long term

This was a beautifully structured loan strategy and a perfect example of what we do here at Amy DeBusk Home Loans, located in Roseville, CA.

We help first-time buyers not only get approved, but make sure the payment and plan fits their real life.

Why This Story Matters So Much for First-Time Buyers

Tyler and Elizabeth’s journey is exactly why I love working with first-time buyers. Their experience is a great reminder that buying your first home is rarely a straight line, but with the right plan and the right support, it is completely achievable.

Here are the biggest lessons I want every first-time buyer to take from their story:

1. The right home is worth waiting for

It’s easy to feel pressured when you’ve been searching for a while, but the right home is more than just a “yes” on paper. It’s where you’ll build your daily life, your routines, and your future. Settling too quickly can lead to regrets later, so patience can truly pay off.

2. Inspections don’t just “help”… they protect you

A home can look perfect during a showing, but inspections reveal what you can’t always see, like roof issues, plumbing concerns, foundation problems, or electrical hazards. Even when it’s disappointing, finding out early can save you thousands of dollars and major stress after you move in.

3. Negotiations are a huge part of the process

Many buyers think the price is the only thing being negotiated, but the contract terms matter just as much. Repairs, credits, timelines, and lender requirements all have to work together. A solid loan strategy and smart negotiation can make the difference between a deal falling apart or crossing the finish line smoothly.

4. Down payment assistance can completely change what’s possible

One of the biggest challenges for first-time buyers is coming up with the upfront costs. That’s why programs like CalHFA can be a game-changer for eligible buyers. When used correctly, down payment assistance can reduce the barrier to entry and help buyers become homeowners sooner than they thought possible. Understanding how these programs work together can open up more options than you might expect.

If down payment assistance is something you’re curious about, make sure you read our previous blog: The Ultimate 2026 CalHFA Guide for First-Time Homebuyers

5. Staying committed is what gets you to the finish line

The truth is, almost every buyer hits a moment where they feel discouraged, especially when a deal doesn’t work out. But the buyers who win are the ones who stay consistent, keep learning, and keep moving forward. With the right team behind you, the right home will come along.

Ready to start your own homebuyer journey?

If you’re thinking about buying your first home and you want a clear plan (even if you’re not sure where to start), Amy would love to help.

Visit talkingwithamy.com to schedule a quick call and get your questions answered with zero pressure.

Watch the Full Interview With Tyler & Elizabeth

We recorded a full interview where Tyler and Elizabeth walk you through the real behind-the-scenes of their first-time homebuying journey. They share what the process was actually like, what surprised them the most, and how they stayed confident even when things didn’t go as planned.

In the video, you’ll hear about:

• What it felt like getting into contract for the first time

• Why they chose to walk away after the inspections

• How they handled negotiations and unexpected roadblocks

• What finally made the right home “click”

• The moment they got the keys and realized… this was really happening

If you’re a first-time buyer, their story will make you feel more prepared, more encouraged, and a lot less alone in the process.

Watch the Video Interview

Their Favorite Moment in Their New Home

When I asked them about their favorite moment so far, their answer was everything.

They said they had a picnic in the backyard with their dogs. They were laying in the grass and had this realization:

“This is ours.”

Not rented.
Not temporary.
Not someday.

Home.

That is why I love what I do.

What I’m Seeing Right Now in California

Across California, many buyers are turning to programs like CalHFA because of rising home prices and the challenge of saving for a down payment.

In markets like Sacramento and surrounding areas, these programs are helping buyers move forward sooner rather than waiting years to save.

Thinking About Buying Your First Home in Citrus Heights or the Greater Sacramento Area?

If you’re exploring homeownership and you’re not sure where to start, you are exactly where you need to be.

I help first-time buyers create a clear plan from the beginning, including:

• FHA and Conventional options
• CalHFA down payment assistance
• payment planning and rate buydown strategy
• credit improvement guidance when needed
• step-by-step support through the entire process

📞 Call or Text: (916) 705-2557
📧 Email: amy.debusk@apmortgage.com
🌐 Website: amydebuskhomeloans.com
📅 Book a Call: talkingwithamy.com

❓FAQs: First-Time Homebuyer Questions (Citrus Heights, CA)

For many CalHFA programs, the minimum credit score is typically 640, but requirements can vary depending on the exact CalHFA program, loan type, and automated underwriting findings. Some buyers may need higher scores based on their overall profile, so it’s always best to review options with a mortgage professional.

Yes. Many first-time buyers use CalHFA down payment assistance paired with an FHA first mortgage, as long as they meet program guidelines, income limits, and other requirements. This combination can be a great solution for buyers who want a smaller down payment and a clear path into homeownership.

On an FHA loan, the maximum seller contribution is typically up to 6% of the purchase price, depending on the structure of the transaction and what the credit is being applied toward. Seller credits are commonly used for closing costs, prepaid items, and sometimes interest rate buydowns when allowed.

Down payment assistance can help cover:

• your down payment
• certain closing costs
• prepaid items like homeowners insurance and property taxes

Depending on the program, it may be structured as a loan, a deferred-payment second mortgage, or a forgivable option. The exact benefit depends on the program guidelines and borrower eligibility.

Falling out of contract can feel disappointing, but it can also be a major blessing in disguise. Inspection issues, pricing challenges, or safety concerns may protect you from buying a home that would cost more long-term. Many successful first-time buyers get into contract more than once before the right home comes together.

Potentially, yes. Depending on the transaction, buyers may be able to structure a permanent rate buydown using available credits (including seller credits, when permitted) to reduce their interest rate and improve monthly affordability. This is something we help plan carefully so the numbers make sense and the payment stays comfortable.

In many cases, yes. CalHFA typically defines a first-time homebuyer as someone who has not owned a home in the last 3 years. However, there are exceptions in certain situations and certain program variations. This is something we can confirm quickly when we review your scenario.

The fastest way is to use our free tool and then confirm eligibility with our team. We built a Down Payment Assistance GPT to help first-time buyers explore options, ask the right questions, and get clarity fast.

• Visit our First-Time Home Buyer Hub for step-by-step guidance
• Use our Down Payment Assistance GPT tool to explore options and build confidence
• Book a call with our team when you’re ready to map out your personalized plan