A New Opportunity for First-Time, First-Generation Homebuyers
The California Dream For All Shared Appreciation Loan is an exciting new program designed to help first-time, first-generation homebuyers achieve their dream of homeownership. Set to launch in 2024, this innovative loan offers up to 20% of the purchase price (not exceeding $150,000) to assist with down payment and closing costs.
How the Shared Appreciation Loan Works
When you take advantage of the California Dream For All Shared Appreciation Loan, you receive funds to help with your down payment and closing costs. Upon selling or transferring your home, you repay the original loan amount plus a portion of your home's appreciated value. This shared appreciation model allows the program to assist more homebuyers in the future.
Eligibility Requirements
To qualify for the California Dream For All Shared Appreciation Loan, you must meet the following criteria:
- At least one borrower must be a first-generation homebuyer
- All borrowers must be first-time homebuyers
- Your income must fall within the CalHFA Income Limits for the county where you plan to purchase your home
Preparing for the Application Process
To get ready for the California Dream For All Shared Appreciation Loan application process, follow these steps:
- Consult with a CalHFA Approved Lender offering the Dream For All program
- Work with your loan officer to obtain a California Dream For All (DFA) Lender Pre-Approval Letter
- Complete the mandatory 1-hour California Dream For All education course, which covers shared appreciation and its impact on your mortgage repayment
- Gather necessary documents, including your DFA Lender Pre-Approval Letter, government ID, proof of current address, and foster care documentation (if applicable)
A Unique Opportunity for California Homebuyers
The California Dream For All Shared Appreciation Loan presents a unique opportunity for first-time, first-generation homebuyers to overcome the hurdle of saving for a down payment and closing costs. By providing up to 20% of the purchase price, this program makes homeownership more accessible for many Californians.
At Tennant Lending, we are excited to help our clients navigate this new program and achieve their homeownership goals. As a trusted mortgage lender in Northern California, we are committed to providing the guidance and support you need throughout the homebuying process.