California Dream For All Program: A Path to Homeownership

Mar 29

By Eli Fletcher, Fletcher Real Estate Team

A Unique Opportunity for First-Time Homebuyers

Homeownership in California can feel out of reach for many, especially with rising prices and competitive markets. But what if there was a way to get up to 20% assistance for your down payment or closing costs? That’s exactly what the California Dream For All Shared Appreciation Loan aims to do! This program is designed to help first-time homebuyers bridge the financial gap and step into homeownership with greater ease. Let’s break it down so you know exactly how it works, who qualifies, and what to do next.

What Is the California Dream For All Program?

The California Dream For All Shared Appreciation Loan is a down payment assistance program designed for first-time homebuyers. It works in conjunction with the Dream For All Conventional first mortgage to help cover down payment and/or closing costs.

Here’s how it works:

Eligible buyers can receive up to 20% assistance for their down payment or closing costs (capped at $150,000).
The loan isn’t free money—it must be repaid when the home is sold or transferred.
When repaying, homebuyers will owe the original loan amount plus a share of the home’s appreciation in value.

This program allows buyers to get into a home sooner without struggling to come up with a massive down payment upfront.

Who Is Eligible?

Not everyone can qualify for this program, so let’s look at the key requirements:

First-time homebuyer: All borrowers must be first-time homebuyers, meaning they haven’t owned a home in the last three years.
First-generation homebuyer: At least one borrower must be a first-generation homebuyer (meaning their parents or legal guardians did not own a home during the borrower’s lifetime or lost a home due to foreclosure).
Income limits: Borrowers must meet CalHFA income limits for the county in which they’re purchasing.
Voucher Registration: Buyers must register for a voucher to be considered. This is not a first-come, first-served process; registrants are chosen through a randomized drawing.

Next Steps: What to Do If You Applied

If you’ve already applied, here’s what you need to know:

Check your status on the DFA portal: All applications have been reviewed, and voucher statuses have been updated. Log in to see where you stand.
If you were not selected: You can still explore other CalHFA down payment assistance programs like MyHome and CalPLUS with ZIP.
If you’re on the waitlist: Keep checking your portal and emails. If a voucher position opens up, you’ll be notified and your status will change to Voucher Issued.
If you received a voucher: Congratulations! You will receive detailed instructions via email on the next steps. Be sure to complete the 1-hour California Dream For All education course online. This course is free and explains the concept of shared appreciation and how it impacts your mortgage repayment.

Understanding Shared Appreciation

One of the most unique aspects of this program is the shared appreciation repayment model. Here’s a simple breakdown of what it means:

Let’s say you receive 20% in assistance for your home purchase.
If your home increases in value by $100,000, you will repay the original loan amount plus 20% of that appreciation ($20,000).
If your home decreases in value, you only repay 20% of the new, lower appreciation amount.

This structure ensures the program remains sustainable while helping future homebuyers access assistance.

Final Thoughts

The California Dream For All Program is a fantastic opportunity for eligible first-time homebuyers to overcome financial barriers and achieve homeownership. While the shared appreciation model means you’ll eventually repay more than just the loan amount, the benefit of getting into a home sooner rather than later often outweighs the cost.

If you’re looking to buy in Bay Area real estate, this could be the boost you need! Whether you were selected for a voucher or are considering other options, it’s essential to work with the best real estate agent to guide you through the process. As your favorite realtor, we’re here to help you navigate this program and find the right home for you. Reach out today, and let’s make your homeownership dreams a reality!