The California Dream For All Shared Appreciation Loan Program is a down payment assistance program designed to help first-time homebuyers in California realize their dream of homeownership. This program is designed to work alongside the Dream For All Conventional first mortgage for down payment and/or closing costs.
The way it works is that upon the 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. This means that the homebuyer can receive assistance with their down payment while still being able to benefit from any appreciation in the value of their home.
Before applying for the CalHFA Dream For All Shared Appreciation Loan, it's important to review the eligibility requirements. Borrowers must be first-time homebuyers who plan to occupy the property as their primary residence. Non-occupant co-borrowers are not allowed, and borrowers must meet CalHFA income limits for this program. Additionally, CalHFA borrowers must complete two levels of homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
For properties to be eligible for the CalHFA Dream For All Shared Appreciation Loan Program, they must be single-family, one-unit residences, including approved condominiums/PUDs. Guest houses, granny units, and in-law quarters may also be eligible, and manufactured housing is permitted. Condominiums must meet the guidelines of the first mortgage, and in the case of conflicting guidelines, the lender must follow the more restrictive ones.
The interest rate for the CalHFA Dream For All Shared Appreciation Loan is the same as the first mortgage, and the repayment terms are set at the time of origination. With the CalHFA Dream For All Shared Appreciation Loan, first-time homebuyers in California can achieve their dream of homeownership with the added benefit of down payment assistance and shared appreciation.
As a mortgage specialist, I strongly encourage first-time homebuyers in California to explore the CalHFA Dream For All Shared Appreciation Loan Program. With down payment assistance and shared appreciation, this program can help make homeownership more accessible and affordable. Don't let the barrier of a large down payment hold you back from achieving your dream of homeownership. Contact us today to get your application started.