California Dream for All Program

A California state program launched in 2022 to make homeownership more accessible to low and moderate-income Californians through shared appreciation loans.

Geographic Scope: California residents only

Program Type: Shared appreciation loan for down payment assistance

Key Features

• Covers up to 20% of home purchase price
• No monthly interest payments required on the shared appreciation loan
• Reduces primary mortgage amount, potentially lowering monthly payments
• May help borrowers avoid costly primary mortgage insurance (PMI)
• Potential to secure better interest rates
• Self-sustaining program (not funded by California taxpayers)

Eligibility Requirements

• Residency: Must be a California resident with current residency documentation
• First-Time Homebuyer Status: Cannot have owned a home in the last 3 years
• Financial Need: Must demonstrate financial need as low or moderate-income Californian
• Credit Score & DTI Ratio: Must meet specific requirements based on credit score and debt-to-income ratio
• Property Types: Single Family Residences (SFR), Condos, or Manufactured homes
• Homebuyer Education: Must complete two-step CalHFA homebuyer education course

What the Program Does NOT Fund

• Non-occupied co-signers are not allowed
• Cannot be combined with other CalPLUS ZIP or MyHome Assistance programs
• Not available for non-first-time homebuyers

Program Status

• As of April 7, 2023, all funds for the program have been reserved
• Additional funds may become available in the future
• Recommend monitoring official channels for reopening announcements

Background

• Designed to be self-sustaining through returns on shared equity appreciation
• Successfully garnered significant attention and appreciation since inception

Application Process

1. Verify Eligibility: Ensure you meet all eligibility criteria, including being a first-time homebuyer and California resident
2. Check Credit Score and DTI Ratio: Verify your credit score and debt-to-income ratio meet program-specific requirements
3. Select Property Type: Choose appropriate property (SFR, Condo, or Manufactured home)
4. Complete Homebuyer Education: Complete the two-step CalHFA homebuyer education course
5. Apply for Loan: Apply with the CalHFA DFA Conventional 1st loan

Required Materials

• Residency documentation
• Financial documents (organized and current)
• Credit score verification
• Debt-to-income ratio documentation
• Property information
• Proof of homebuyer education course completion

Important Notes

• Always read program fine print and understand exclusions before applying
• Act quickly when funds become available, as they are reserved on first-come basis
• Sign up for official CalHFA notifications to be informed when program reopens or new funds are allocated
• Consult official CalHFA website for most current application procedures