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CalHFA, California’s leading housing finance agency, has exciting news for first-time homebuyers in the state. On March 27th, 2023, CalHFA will introduce the Dream For All Shared Appreciation Loan, a down payment assistance program designed to help first-time homebuyers achieve their dream of homeownership.

The Dream For All Program was established by the 2022-23 State Budget, which allocated funds to CalHFA to administer the program with broad parameters and specific requirements. The program aims to improve equitable access to homeownership for all Californians, as home equity has proven to be one of the strongest ways for families to build and pass on intergenerational wealth.

Here are some key highlights of the Dream For All Shared Appreciation Loan program:

  • Required First Mortgage: Dream For All Conventional First Mortgage
  • Dream For All Shared Appreciation Loan amount: Up to 20% of the sales price or appraised value (whichever is less)
  • Income Limits: Income cannot exceed CalHFA Income Limits, which range from $282,000 to $300,000 in the Bay Area.
  • Repayment: Upon sale or transfer of the home, the homebuyer repays the original down payment loan, plus a share of the appreciation in the value of the home. Most buyers will pay between 15% and 20% of the appreciation gained in the home, depending on their income in relation to the Area’s Median Income (AMI).

To be eligible for the program, homebuyers must meet certain requirements, including being a first-time homebuyer and using the loan for the down payment and/or closing costs of the Dream For All Conventional First Mortgage.

The Dream For All Shared Appreciation Loan is an incredible opportunity for first-time homebuyers in California to achieve their dream of homeownership. With up to 20% of the sales price or appraised value available for down payment assistance, this program can make all the difference in securing a home in a competitive market.

If you’re a first-time homebuyer in California and interested in the Dream For All Shared Appreciation Loan, don’t hesitate to reach out to CalHFA for more information. This program could be the key to unlocking your dream of homeownership.

Keywords: CalHFA, Dream For All, Shared Appreciation Loan, first-time homebuyers, homeownership, down payment assistance, California, intergenerational wealth, equity, Bay Area.

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