CalHFA Dream For All Program

The California Dream For All program makes its return in 2024, following its highly successful debut last year. Originally, the program swiftly distributed its approximately $300 million funding within a mere 11 days. Now, with a newly allocated $250 million, it aims to continue assisting first-time home buyers in California.

For those unfamiliar with the initiative, here's a brief overview: The program offers assistance to first-time home buyers in California by providing loans for up to 20% of the home's cost, or a maximum of $150,000. However, there are important conditions attached. While the loan does not require immediate repayment, it is to be repaid, without interest, upon the sale of the home. Additionally, borrowers are obligated to repay 20% of any appreciation in the home's value, hence the term "Shared Appreciation Loan." For instance, if a home is purchased for $600,000 and sold a decade later for $700,000, the borrower would repay the initial $120,000 down payment, along with an additional $20,000 (20% of the $100,000 appreciation).

Eligibility criteria for the program include California residency, first-time home buyer status, and a maximum income threshold set at 120% of the area's median income. Furthermore, at least one applicant must be a first-generation home buyer, meaning their parents do not currently own a home in the United States.

A notable change in the 2024 application process is the switch from a first-come, first-served basis to a lottery system. This alteration eliminates the need for applicants to rush their submissions at the program's opening, allowing them until the end of April to submit their applications through their lenders.

For those seeking more detailed information on the program, feel free to reach out via phone or email