Sacramento, California – California is bringing back a well-known homeownership program that helps first-time buyers with their down payments. This gives many families another chance to buy a home in one of the most expensive housing markets in the country.
The California Housing Finance Agency runs the Dream For All Shared Appreciation Loan program. It will start taking applications again on February 24 and will stop taking applications on March 16.
The initiative is aimed to assist first-generation Californians overcome one of the largest challenges to buying a home: accumulating enough money for a down payment. Eligible buyers can get assistance of up to 20% of a home’s purchase price or appraised value. That support can drastically reduce the upfront costs of buying a home and make monthly mortgage payments more bearable.
State housing authorities say the initiative has already played an important role in extending access to homeownership. Since its start, Dream For All has helped thousands of residents acquire their first homes. Under the program’s structure, buyers repay the aid loan when the home is sold or refinanced, allowing the state to recycle those funds back into the program and support future buyers.
Demand for the help is projected to be high again this year. Because available money is limited, CalHFA has verified that candidates would be picked through a random selection procedure rather than on a first-come, first-served basis. Officials believe this strategy is meant to guarantee fairness, considering that interest in the program is expected to surpass the amount of money available.
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For the 2026 fiscal cycle, the government predicts that between $150 million and $200 million will be available statewide. At least 10% of the funds will be earmarked for applicants who live in Qualified Census Tracts, a condition set by Governor Gavin Newsom to help direct aid toward communities that have historically experienced challenges to homeownership.
Once the application window closes, CalHFA will examine and audit applications. Applicants who gain conditional approval will have 90 days to find and acquire a home. During that period, buyers must work within the program’s parameters and complete the acquisition with an approved lender.
Participation in the program needs considerable preparation. CalHFA says candidates must negotiate with a lender that is approved by the agency and acquire a pre-approval letter before applying. Required documentation includes a government-issued identification and information relating to the applicant’s parents, demonstrating the program’s focus on first-generation homebuyers. A detailed checklist of essential resources is accessible on the Dream For All website.
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The shared appreciation loan structure offers extra financial benefits beyond the down payment itself. According to the agency, members can avoid private mortgage insurance and benefit from cheaper monthly housing costs. A 2022 analysis completed for the California State Treasurer’s Office indicated that the program saves the typical buyer roughly $1,200 per month, a considerable savings for households dealing with high housing expenses.
Income limits apply and vary significantly by county, reflecting changes in local housing markets. Current limitations range from about $148,000 in Del Norte County to $168,000 in Los Angeles County, with higher caps in locations such as Santa Clara County, where the limit reaches roughly $309,000.
As applications reopen, housing advocates and state officials alike say the program reflects a renewed effort to make homeownership more attainable, particularly for families that have not historically had the ability to develop wealth through owning a home.