Understanding the Requirements for First-Time and First-Generation Homebuyers

The California Dream For All Shared Appreciation Loan is designed to help first-time and first-generation homebuyers achieve their dream of homeownership. To qualify for this program, borrowers must meet several key eligibility criteria, including:

First-Time Homebuyer Requirement

All borrowers, including co-borrowers, must be first-time homebuyers. This means that none of the borrowers can have had an ownership interest in a principal residence or resided in a home owned by a spouse during the past three years.

First-Generation Homebuyer Requirement

At least one borrower must be a first-generation homebuyer. To meet this criterion, the borrower must not have been on title, held an ownership interest, or been named on a mortgage for a home in the United States within the last seven years. Additionally, to the best of the borrower's knowledge, their parents (biological or adoptive) must not currently have any ownership interest in a home in the United States, or if deceased, must not have had any ownership interest at the time of their death.

Individuals who have been placed in foster care or institutional care at any time also qualify as first-generation homebuyers.

Income Limits

To be eligible for the California Dream For All Shared Appreciation Loan, the borrower's household income must not exceed the CalHFA Dream For All income limits for the county in which they plan to purchase a home. These income limits are based on the county's median income and are designed to ensure that the program benefits low- and moderate-income homebuyers.

Additional Requirements

In addition to meeting the first-time homebuyer, first-generation homebuyer, and income limit criteria, borrowers must also:

  1. Be either a U.S. citizen, other U.S. National, or a "Qualified Alien" as defined by federal law
  2. Meet the credit, income, and loan requirements of CalHFA's first mortgage loan program, the CalHFA-approved lender, CalHFA's Master Servicer, and the mortgage insurer (if applicable)
  3. Occupy the purchased property as their primary residence within 60 days of closing

Helping You Navigate the Eligibility Criteria

At Tennant Lending, our experienced mortgage professionals are well-versed in the eligibility criteria for the California Dream For All Shared Appreciation Loan. We can help you determine if you meet the first-time homebuyer, first-generation homebuyer, and income limit requirements, as well as guide you through the additional criteria needed to qualify for this program.

As a CalHFA-approved lender serving Northern California, we are committed to helping you understand and navigate the eligibility criteria for the California Dream For All Shared Appreciation Loan. Contact Tennant Lending today to learn more about how we can help you achieve your homeownership goals.

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