CalHFA will begin accepting pre-approvals for this program in late March or April 2024. Funds are very limited, so it’s important to get in touch with an approved lender or broker as soon as possible.
What is the CalHFA Dream For All Shared Appreciation Loan program?
The Dream For All Shared Appreciation Loan is a California Housing Finance Agency (CalHFA) down payment assistance program for first-generation homebuyers. The shared appreciation loan provides 20% of the purchase price towards down payment and/or closing costs.
Upon sale or transfer of the home, the homebuyer repays the original down payment loan, plus a share of the appreciation in the value of the home. Those repayments are then used to fund future homebuyer down payments.
Funds are limited
Funds for this program are very limited, so it’s important to get in touch with an approved lender (such as Network Mortgage) as soon as possible to check your eligibility and complete the necessary paperwork.
CalHFA will begin accepting pre-approval certifications from lenders in late March or April 2024. A lottery will be conducted to determine which applicants will be eligible for down payment funds.
- Dream For All provides a loan for 20% of the home purchase price.
- No payments are required on the 20% loan.
- Flexible credit requirements.
- Lower monthly payments thanks to the larger down payment.
- Can help homebuyers purchase a home that they otherwise couldn’t afford.
- Program is for first-time homebuyers purchasing an owner-occupied property anywhere in California.
- At least one borrower must be a current California resident.
- At least one borrower must be a first-generation homebuyer.
- Program is only available through a CalHFA-approved lender or mortgage broker working through an approved lender.
- Borrower must meet CalHFA credit, income and loan requirements.
- Borrower must complete a homebuyer education course before closing.
- The home must be purchased as a primary residence and remain owner-occupied.
What is a first-generation homebuyer? A “first-generation homebuyer” is a borrower whose parents have not owned a home within the previous seven (7) years. Sound weird? We agree — Give us a call, we’ll explain it.
How to get started
- Talk to a CalHFA-approved lender who is offering the Dream For All program.
- Work with your lender to secure a California Dream For All (DFA) Lender Pre-Approval Letter. You’ll need this letter in order to register for a DFA voucher in late March or April 2024.
We can help
A shared appreciation mortgage (SAM) is a little more complex than a typical mortgage. As a CalHFA-approved broker, Network Mortgage can help clear away the jargon and explain these loans in simple terms. So when you’re ready, just give us a call and we’d be happy to explain them to you.
Frequently asked questions
01. What is the maximum loan amount for the Shared Appreciation Loan?
The maximum loan amount is up to $150,000 or 20% of the sales price or appraised value, whichever is less.
02. Do all borrowers have to be first-generation homebuyers?
No, only one borrower has to meet the definition of a first-generation homebuyer, meaning the borrower’s parents have not owned a home within the previous seven (7) years.
03. What is the minimum combined loan to value (CLTV)?
The CTLV must be between 95.00% and 105.00%.
04. Do all borrowers have to be a current California resident?
No, only one borrower has to be a current California resident.
05. What are the income limits for the Shared Appreciation Loan?
Income cannot exceed CalHFA Dream For All income limits.
06. Are borrowers required to make monthly payments on the Shared Appreciation Loan?
No, payments are not made on the down payment funds from this program. The loan is re-paid when the home is sold or title transferred.
07. Does CalHFA allow borrowers to make payments on the Shared Appreciation Loan?
Yes, however payments are applied to the principal balance only and do not affect the shared appreciation portion. However, paying off the principal balance in full will trigger the repayment of the shared appreciation portion.
08. Does the Shared Appreciation Loan need to be combined with a CalHFA first mortgage?
Yes, the Shared Appreciation Loan must be paired with a Dream For All first mortgage.
09. What CalHFA first mortgage loans are eligible to use with the Dream For All Shared Appreciation loan?
The Shared Appreciation Loan may only be combined with a Dream For All Conventional loan.
10. Can the MyHome Assistance Program be combined with the Shared Appreciation Loan?
No, the MyHome Assistance Program may not be used with the Shared Appreciation Loan.
11. Does the borrower need to be a first-time homebuyer for the Shared Appreciation Loan?
Yes, all borrowers must be first-time homebuyers.
12. What areas of California are eligible for CalHFA Financing?
Properties located anywhere within the state of California may be eligible for the program.
13. Is homebuyer education required on CalHFA loan programs?
Yes. In addition to the Homebuyer Education and Counseling required for the Dream For All Conventional first mortgage, at least one borrower must take additional CalHFA homebuyer education specifically for shared appreciation loans.
14. Can the borrower receive cash back from the Shared Appreciation Loan?
No, cash back from the Shared Appreciation Loan is not allowed.
15. Is there a cap on the amount of appreciation that the borrower will owe on the Shared Appreciation Loan?
Yes, there is a cap on the amount of appreciation owed; the most a borrower will ever repay is 2.5 times the original loan amount.
- CalHFA: California Dream For All Shared Appreciation Loan
- CalHFA: Dream For All Shared Appreciation Loan Program Handbook (96 KB PDF)