Eaton and Palisades fire survivors who lost their homes can now apply for state-backed financing to lower the cost of rebuilding.

Gov. Gavin Newsom launched the $100 million Disaster Rebuilding Assistance Program (DRAP) on Thursday, Sept. 17. The California Housing Finance Agency (CalHFA) administers the program, which was funded through the state's fiscal year 2026-27 budget.

The program offers two tools. Interest rate buydowns use upfront state funds to reduce borrowing costs. Loan-loss guarantees let lenders extend credit more broadly by lowering their risk, according to the governor's office.

Rebuilding has been slow. A July 2026 survey of 2,000 survivors by the nonprofit Department of Angels found two-thirds remained displaced. Nearly half had depleted savings, and the typical homeowner faced a $500,000 rebuilding gap. L.A. County data cited in that report showed only 125 new residential units had been constructed out of 6,746 structures damaged or destroyed in the Eaton Fire area.

The governor's office said the separate CalAssist Mortgage Fund had awarded $54 million in mortgage relief to 1,575 households as of Sept. 14, with 76% of those funds going to Eaton Fire homes. Local building departments had issued 8,450 permits for fire-affected properties as of the week of Sept. 17.

Newsom first announced the program during his State of the State address earlier in 2026. Officials said it was developed in response to feedback from Eaton and Palisades fire survivors.

California Housing and Homelessness Agency Secretary Tomiquia Moss said in a statement that the state will continue investing in financial assistance to help wildfire survivors rebuild and recover.

The program targets low- and moderate-income homeowners. Income limits vary by county and loan type. To qualify, a homeowner's primary residence must have been destroyed or damaged by a qualified disaster between Jan. 1, 2023, and Jan. 8, 2025. The owner must have lived in the home at the time and must plan to move back within 60 days of construction completion, according to the CalHFA program page.

Eligible property types include single-family homes, condos, planned unit developments, one-to-four unit properties, accessory dwelling units and permanently affixed manufactured homes.

CalHFA does not lend directly. Homeowners must apply through an approved construction lender. At launch, Guild Mortgage is the only listed participating lender.

The program launched two days after Newsom signed wildfire-related bills in Altadena on Tuesday, Sept. 15, including legislation by Assemblymember John Harabedian targeting smoke remediation and mortgage protections, as we reported Sept. 15.

Homeowners can find program details and lender contacts on the CalHFA program page.