California is helping more new homebuyers with down payments. Who qualifies?
Need help with home down payments?
The California Housing Finance Agency’s Dream For All Shared Appreciation Loan program is reopening applications.
The program gives first-generation homebuyers up to 20% of the home’s purchase price or appraised value to help cover the down payment.
According to the state housing finance agency, the shared appreciation loan is capped at $150,000, or 20% of the home’s sale price or estimated value — whichever is lower.
To make sure funds are distributed fairly, applicants will be chosen through a random selection process, according to a Jan. 16 news release.
The program is projected to help about 2,000 households — including buyers who are already on the Dream For All waitlist, the agency said in the news release.
In 2026, the state housing agency expects to make $150 million to $200 million available for potential applications.
“The California Dream For All program has already helped thousands of Californians buy their first home,” CalHFA Executive Director Tony Sertich said in the Jan. 16 news release.
As homeowners repay their loans, Sertich said, those funds are “reinvested into the program to create a cycle that will continue far into the future, planting the seeds of generational wealth to help keep the California dream alive.”
Here’s what to know about the program:
Who is eligible to apply for home loan assistance?
Due to strict guidelines from state lawmakers, this year’s loans are limited to first-generation homebuyers.
According to the California Housing Finance Agency, a first-generation homebuyer is someone who has not owned a home in the past seven years and whose parents do not currently own a home in the United States — or did not at the time of their death.
People who were placed in foster care also qualify, the state agency said.
California’s Dream For All Shared Appreciation Loan program is designed for homebuyers who plan to buy and live in a home in California. The property must be owner-occupied, meaning it can’t be rented out, according to the agency.
To qualify for the Dream For All Shared Appreciation Loan program, the following must be true:
- One borrower must be a first-generation homebuyer.
- One borrower must be a current resident of California.
All borrowers must also be first-time homebuyers and meet income limits for the county where they’re purchasing housing.
For example, residents of Sacramento, Placer and El Dorado counties who make more than $191,000 a year are not eligible to participate in the program.
When can I apply for down payment assistance program?
The California Housing Finance Agency will begin accepting applications on Tuesday, Feb. 24.
To apply, buyers must meet eligibility requirements and work with one of the agency’s approved lenders to obtain a pre-approval letter before submitting an application.
Applicants will also need to provide additional documents, including a government-issued ID, such as a passport, and information about their parents, such as a birth certificate.
When is the last day to apply?
The last day to apply for the Dream For All Shared Appreciation Loan program is Monday, March 16.
