Don’t know anything about the CalFHA program, but if it’s just the issue of the down payment, you can still use FHA, just have to be a little more creative about it (and pressure the sellers).
FHA still allows “gift” programs to provide the purchasers 3% down payment, essentially allowing the seller to pay that mandatory 3% down. Google “Nehemiah” for one of the main programs that do this. Essentially how it works is the program gives you the 3% to put down towards the property to satisfy the FHA’s requirement, then after closing, the seller gives that 3% amount to Nehemiah. Kind of snarky, but still completely legal (for how much longer is unknown, as there have been some attempts to close this loophole).
Given the market today, it should be fairly easy to talk any seller into this 3% concession, and as a bonus, you’d start your homeownership with at least a little equity cushion.
