Cal-HFA Dream For All Shared Appreciation Loan
Overview of the Cal-HFA 20% Down Payment Program
California Housing Finance Agency (Cal-HFA) shared Appreciation Loan is a down payment assistance program for first-time homebuyers to be used for down payment and/or closing costs of purchasing a home. When the home is sold several years later, homebuyer must repay the original down payment loan (e.g., 20%), plus a share of the appreciation in the value of the home. The program is designed for moderate and low income Californians, as defined in the following sections. In addition, the 2024 program requires the buyer to be a First-Generation homebuyer, which I discuss further on this page. The following diagram depicts the concept of Shared Appreciation.
Program Eligibility
- The borrower must be First-time homebuyer. A first-time homebuyer is defined as someone who has not owned and occupied their home in the last three years, and who has not lived in a home owned by a spouse in the past three years.
- At least one of the borrowers must be First-generation homebuyer. The first-gen homebuyer is someone who:
- Has not been on title, held an ownership interest or have been named on a mortgage to a home (on permanent foundation and owned land) in the United States in the last 7 years, AND;
- To the best of the homebuyer’s knowledge whose parents (biological or adoptive) do not have any present ownership interest in a home in the United States.
- Max borrower down payment is 5%. CalHFA’s max down payment and/or closing cost is 20% or max $150,000.
- Must meet CalHFA income limits for low and moderate income levels. Area Median Income (AMI) [click to download PDF table] is used to determine the type of assistance program:
- Moderate Income category is one that is between 80% to 120% of the AMI
- Low Income category is one that is under 80% of the AMI
- Borrower must get pre-approved by a licensed loan officer. The loan officer will complete and sign a 1-page pre-approval form [see PDF here] for the borrower. Borrower needs this pre-approval letter/form in order to register for the program in early April 2024.
- Borrower must take the 1-hour California Dream For All education course online. This is a FREE online course. Visit www.calhfadreamforall.com to enroll for this course.
2024 Program Timeline
- Borrower must get pre-approved by a licensed loan officer by the end of March 2024. The 1-page pre-approval form [see PDF here] will be needed in order to register for the program in early April 2024.
- Borrower must take the 1-hour California Dream For All education course online by the end of March 2024. This is a FREE online course. Visit www.calhfadreamforall.com to enroll for this course.
- You must register for the Cal-HFA Shared Appreciation Program online starting in early April 2024.
- It is said that the registration will remain open for ~20 days. The sooner you register, the better.
- In Late April 2024, there will be a lottery to draw names for the program. If your name is drawn, you will receive a voucher for the 20% down payment assistance program.
- The voucher is valid for ~90 days to be used towards purchase of a primary residential home by qualified borrower.
- The Cal-HFA will audit candidates’ eligibility. If you do not meet the program criteria, your application will be voided.
Get Your Cal-HFA Pre-Approval Letter
Are you interested in this program and are eligible for it? Let me prepare and sign your Pre-Approval letter today.
Use the link below to start your Cal-HFA pre-approval process. The link takes you to my secure portal where you can create your private account and fill out your basic information (name, employment, income, etc). It is easy and secure. I will contact you if I need additional information. It is FREE & No Obligation. I do NOT run credit for this letter.