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).
- 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.