CalHFA Set to Offer Families Up to 20% Down Through Shared Equity Program. 

The California Housing Finance Agency (CalHFA) has launched a new program called Dream for All, which aims to make homeownership more affordable for low- and moderate-income Californians. The shared appreciation program provides loans for up to 20% of the purchase price (down payment). 

Key Features

• Dream for All loans 20% of the home purchase price.
• The loan limit is $726,200, which yields an estimated purchase price of $907,750.  ($181,550 Down Payment Loan)
• CA has initially allocated $500,000,000 correction - the amount was reduced to $350,000,000 for this program before launch, and we expect this to go fast.
  
• The income limits vary by county.  In Placer County, for example, the limit is $202,000. (CalHFA Income Limits by County)

How it Works

The program's implementation goals are to increase access to homeownership for low- and moderate-income Californians, provide wealth accumulation through homeownership opportunities, ensure recyclability of funds, minimize financial risk to the consumer, State, and Agency, and ensure long-term operational and administrative viability.

Additional Features Include: 

• The homeowner pays back the original loan plus 20% of any appreciation in the home's value.
• The program includes a subordinate second mortgage, down payment and closing cost assistance, and an effective interest rate on loans equal to the average annual home value appreciation.
• Homebuyers only make payments once they sell, refinance, or transfer the property.
• Homebuyers are expected to complete a brief educational program. 

In conclusion, Dream for All is an excellent program that allows low- and moderate-income Californians to achieve affordable homeownership. If you're a homeowner seeking down payment assistance, please get in touch with one of our team members with questions or for help.