CALLING ALL FIRST TIME HOME BUYERS
NEW CALHFA LOAN PROGRAM
CALIFORNIA
DREAM FOR ALL
What is the California Dream For All Program?
20% down payment assistance is in the form of a silent second loan. The Dream For All home loan and assistance program is another example of how the state of California is helping homebuyers gain access to affordable financing, increase homeownership, and creating generational wealth.
California Dream for All is a new program offered by the state of California that provides first time homebuyers or anyone who has not owned a home in the past 3 years with down payment money toward their home. Homebuyers receive a shared appreciation loan to help them reach a down payment of at least 20% of their home’s purchase price. This California housing program both reduces the primary mortgage loan and helps homebuyers avoid private mortgage insurance and higher interest rates.
The Benefits
Lower monthly payment because you avoid paying private mortgage insurance (PMI)
Lower monthly payment due to lower loan amount
Increased buying power due to larger down payment and lower payment
No monthly repayment of the subordinate silent 2nd assistance loan
Homeowner doesn’t repay until they sell, refinance or transfer the property
Repayment
Upon sale, transfer of the home, or if the borrower refinances, the homebuyer will repay the original down payment loan, plus a share or percentage of the home appreciation
What Does Shared Appreciation Mean?
Shared appreciation (or shared equity) just means that since the California State Housing Finance Agency is investing (partnering) in your ability to purchase a home that will build generational wealth for you, that you will split or share a small percentage of the increase in the value of the home when you sell, transfer ownership, or refinance
How Much Appreciation Is Split or Shared
The percentage of appreciation that is split or shared with the state housing authority when you sell or refinance depends on what your income is:
80%/20% Split = Borrowers with income between 80% to 150% of the AMI keep 80% of the home appreciation
85%/15% Split = Borrowers with income under 80% AMI keep 85% of the home appreciation
Visual Examples of the Dream For All Program
Example: Shared appreciation example with a $500,000 purchase price and after the homeowner sells after 5 years.
