California Dream for All Shared Appreciation Loan Program
CalHFA recently announced a new first-time homebuyer down payment assistance program that provides up to 20% for your down payment. The program is structured to assist first-time homebuyers in building sustainable homeownership.
Program Highlights:
Borrower receives 20% in down payment assistance from CalHFA
Assistance can be used for down payment and/or closing costs:
Example 1: 20% for down payment, no assistance for closing costs
Example 2: 17% for down payment + 3% for closing costs = 20% in total assistance
1:1 growth in equity share with CalHFA applies on the property
Example 1: 20% in assistance received = 20% equity share
Example 2: 10% in assistance received = 10% equity share
Assistance funds must be repaid in the future when the home is sold, refinanced, or reach the end of your 30-year loan term
There is a one-time exception to refinance without triggering repayment
Loan amount limit based on conforming loan limits
Interest rates for the program are set by CalHFA and change daily
Types of approved homes:
Single-family homes
Condos/townhomes (approval required)
Manufactured homes on owned land (no leased spaces)
Below-market-rate (BMR) homes
Eligibility:
Borrower must be a first-time homebuyer (not owned a home in the past 3 years)
Borrower(s) gross income must be below the limit for the county the home is purchased in
Maximum DTI (debt-to-income ratio) is 45-50% (depending on other qualifying factors)
Minimum credit score of 660-680
Conventional only (no FHA options)
