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California Relaunches Dream for All Program to Assist First-Time Homebuyers
The California Housing Finance Agency (CalHFA) has announced that it will be administering an additional round of applications for the California Dream For All Shared Appreciation Loan Program, an initiative I created through the 2022-23 State Budget. Home equity has proven to be one of the strongest ways for families to build and pass on intergenerational wealth.
The program provides first-time homebuyers with up to 20% of the home purchase price to be used as a down payment and/or closing costs assistance, up to $150,000. The state will be repaid the loan plus a share of the home’s appreciation when the home is sold again, and the repayment would go into a revolving fund to allow other future homebuyers to take advantage of the program.
Last year, $300 million was set aside for the program, and it was so popular that the funds were exhausted within just eleven days.
An additional $220 million has been allocated for the Dream for All program in the 2023-24 State Budget. This next round of funding will target first-generation homebuyers, with an equitable distribution to different regions of the state, and will prioritize homebuyers in the lower tiers of income eligibility.
Homebuyers must first find a state-approved lender and register with CalHFA. The application period will open in April and buyers will have a month to submit their application. CalHFA will use a lottery to allocate a number of vouchers for each region of the state based on its share of the state’s households. An estimated 1700 - 2000 vouchers will be distributed and must be used within 90 days.
- Each borrower must be a first-time homebuyer and least one borrower must be a first-generation home-buyer, defined as someone who has never owned a home and whose parents did not own a home, or someone who grew up in foster care.
- All borrowers must occupy the property as their primary residence within 60 days of closing.
- Income must be less than or equal to 120% of the area median income.
- Borrowers must be U.S. citizens or a Qualified Alien, and at least one borrower must be a California resident
For details and to sign up for CalHFA’s program updates go to: https://www.calhfa.ca.gov/dream
Senator, 39th District