Attention all first-time homebuyers in California! Governor Newsom's California Housing Finance Agency (CalHFA) has launched the California Dream for All program, which offers down payment assistance of up to 20% to purchase a home in California, if you meet the qualifications.
In California's current housing market, it has become increasingly challenging for prospective homeowners to secure enough funds for a down payment. To address this issue, the California Dream for All program provides a shared appreciation product, where the state provides homebuyers with a down payment loan. The borrower agrees to repay the loan, plus 20% of the home's appreciation. The loan is repaid when the home is sold or transferred to a new lender.
The California Housing Finance Agency created the program to promote equitable access to homeownership and encourage families to generate and pass on wealth through home equity.
Benefits of the California Dream For All program:
- Lower monthly payment because you avoid paying private mortgage insurance(PMI)
- Lower monthly payment due to lower loan amount
- No monthly repayment of the silent 2nd assistance loan
- Homeowner doesn’t repay until they sell, refinance or transfer the property
Repayment of the Dream For All program loan:
The homebuyer will repay the original down payment loan, plus a share or percentage of the home appreciation, upon the sale or transfer of the home, or if the borrower refinances.
What does "shared appreciation" mean?
Shared appreciation (or shared equity) means since the California State Housing Finance Agency is investing with you to purchase a home, you will split the appreciation of the home when you sell, transfer ownership or refinance.
Eligibility Guidelines:
- First time homebuyer (anyone who hasn’t owned a home in the last 3 years)
- Minimum Credit Score: 660
- Maximum Debt-to-Income Ratio: 45%
- Property Type: SFR or Condo
- Min/Max CLTV: 70%/105%
- Non-occupied co-signers not allowed
- Cannot Exceed County Income Limit (click here to see the income limits in your county)
- CalHFA homebuyer education course required
- One year home warranty required
Important Notes:
- This program is soft launching this month and will begin accepting applications on March 27. Reach out to us so we can connect you with a lender who is offering this program.
- This program has limited funds so the sooner you apply, the better.
What should I do first?
Email, call or text us at leo@leopeak.com or 415-816-1469 to find out if this program is a good fit for you. There are also other down-payment assistance programs available to first-time homebuyers. We're experienced in navigating first-time homebuyer programs and are happy to answer any questions. We can help you figure out your next steps to prepare, if you're looking forward to purchasing your first home!
