California Dream For All Assistance Program

The California Dream for All homebuyer assistance program is a shared appreciation down payment assistance program that provides 20% down payment of assistance, in the form of a silent second loan, to qualified first time buyers.

The Dream For All (DFA) down payment assistance program is an example of how the state of California is helping California homebuyers gain access to affordable financing, increase homeownership, and helping people create generational wealth.

**DON’T MISS OUT**  The DREAM FOR ALL down payment assistance program will be available the spring of 2023.  Due to Gov Newsom’s severe $700 million dollar budget cut to the DFA program, they are anticipating this program will only have enough funds to help approximately 2,300 families.  To get on the waiting list, and prequalified, fill out this Homebuyer Assistance Prequal form and choose “Dream For All’ in the drop down for loan program type.

The DFA fund homebuyer assistance program is not a handout or a subsidy that will be a burden on the California tax payer because it will be self sustaining from the returns on the shared equity.

Benefits of the California Dream For All Assistance Program:

  • Lower monthly payment because you avoid paying private mortgage insurance(PMI)
  • Lower monthly payment due to lower loan amount
  • Increased buying power due to larger down payment and lower payment
  • No monthly repayment of the subordinate silent 2nd assistance loan
  • Homeowner doesn’t repay until they sell, refinance or transfer the property
  • Increased access to homeownership for moderate income Californians

Repayment of the Dream For All Assistance Loan

Upon sale, transfer of the home, or if the borrower refinances, the homebuyer will repay the original down payment loan, plus 20% of the increased value (appreciation) of the home.

Effective interest rate on the DFA assistance loan is equal to the average annual appreciation of the homes value.

What does Shared Appreciation Mean?

It’s not a bad thing.  Shared appreciation (or shared equity) just means that since the California State Housing Finance Agency is investing (partnering) in your ability to purchase a home that is both affordable and will build generational wealth for you, that you will split or share a small percentage of the increase in the value of the home when you sell, transfer ownership, or refinance.

There are 2-3 private ‘shared equity’ or ‘shared appreciation’ type homebuyer programs but they all take a larger share of your equity/appreciation.  This is a much better program.

Pro rata share of appreciation cannot exceed 2.5% that of the original loan amount.

Below is an example of what the shared appreciation would look like on a $500,000 home purchase over 15 years.

Below is what a $500,000 purchase might look like if the homeowners sells after 5 years.

Dream For All Eligibility & Qualifying Criteria:

  • First time homebuyer (anyone who hasn’t owned a home in the last 3 years)
  • Minimum Credit Score: 640
  • Maximum Debt-to-Income Ratio: 45%
  • Property Type: SFR or Condo
  • Non-occupied Co-signers not allowed
  • Cannot Exceed County Income Limit
  • CalHFA Homebuyer Education Course Required
  • One Year Home Warranty required

Find downpayment assistance programs

Get the Facts & Know Your Options

Do you have questions like this?
– Are there other homebuyer assistance options you should consider?

– Which assistance program is the best?

– Which program provides the lowest rate and/or lowest payment?

– Which assistance program will help you qualify for more?

This is what I do.  I help you figure all this out AND get you preapproved for the homebuyer assistance program that you think is best for you.

Most lenders you speak to have no clue what assistance programs are available to you and/or they are unable to offer them to you.  Most loan officers simply don’t have the resources, experience, or knowledge to answer these questions with certainty.  In fact, many of them will lie to you and claim you aren’t eligible or will do everything in their power to make an assistance program appear to be of the devil.

How to Apply for the Dream For All Assistance Program

If you would like to get preapproved to learn about which home loan or homebuyer assistance program will benefit you the most, fill out this Down Payment Assistance Prequal Form.


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