Dream for All – Removing Barriers to Homeownership

The California Housing Finance Agency has launched the Dream for All program, a shared appreciation loan with down payment assistance program for first-time homebuyers. The state is paying for some or all of the upfront costs of buying a home – in exchange for a share in the home’s value. The loans can be used to fund down payments and closing costs – including interest rate buydowns. The state plans to provide $300 million worth of down payments for an estimated 2,300 first-time homebuyers.

How Does it Work?

Upon sale, refinance, or transfer of the home, the borrower will owe the state the original amount the state invested, plus a percentage of the home’s increase in value. The loans will cover as much as 20% of a home purchase. If the original loan was 20% of a home’s value, the seller would owe the state the original loan plus 20% of its increased value, though that amount would be capped at 250% of the original loan amount. The shared appreciation that is given to the state, will go back into the program to help fund a first home purchase for the next borrower.

A social equity feature of the program will be included for those who earn as much as 80% of the area median income. They will get to keep more of their equity when they sell, refinance, or transfer their properties than others with higher incomes. Also, about 10% of the initial state funds, or $30 million, will be reserved for those lower-income borrowers.

This program that will help change people’s lives for the better and make the dream of homeownership a reality while helping more families build their generational wealth.

Program Eligibility Requirements

  • Only those who earn 150% or less of the median income of others in their county qualify. The income limits for San Diego County are generous at $211,000 annually.
  • Be a first-time homebuyer. A first-time homebuyer is defined as someone who has not owned or occupied their own home in the last three years.
  • Occupy the property as a primary residence; non-occupant co-borrowers are not allowed.
  • CalHFA borrowers must complete two levels of homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.

Property Requirements

  • Be a single-family, one-unit residence, including approved condominium/PUDs.
  • Guest houses, granny units and in-law quarters may be eligible.
  • Manufactured housing is permitted.
  • Condominiums must meet the guidelines of the first mortgage.

This program is creating incredible opportunities by removing the most cumbersome barriers on the path of becoming a homeowner. The best financial investment is real estate. Are you ready to begin building your wealth?

Although CalHFA does not accept applications directly, a CalHFA approved Lender will need to qualify you for a home loan. Each loan program that CalHFA offers to homebuyers can have different criteria for income limits, minimum credit scores, citizenship etc.

If you’re interested in learning more about this program, we’ll be happy to connect you with our CalHFA lender partner to begin your qualification today.

More information on the Dream for All program can be found at: https://www.calhfa.ca.gov/dream/index.htm