How These Definitions Impact Your Eligibility for the California Dream For All Shared Appreciation Loan

When applying for the California Dream For All Shared Appreciation Loan, it's essential to understand the difference between a first-time homebuyer and a first-generation homebuyer. While all borrowers must meet the first-time homebuyer criteria, at least one borrower must also qualify as a first-generation homebuyer.

First-Time Homebuyer Definition

To be considered a first-time homebuyer for the Dream For All program, all borrowers must meet the following criteria:

  1. Have not had an ownership interest in a principal residence within the past three years.
  2. Have not resided in a home owned by a spouse during the past three years.

This means that if you or your spouse have owned a home or had an ownership interest in a principal residence within the last three years, you do not qualify as a first-time homebuyer for this program.

First-Generation Homebuyer Definition

In addition to meeting the first-time homebuyer criteria, at least one borrower must also be a first-generation homebuyer. To qualify as a first-generation homebuyer, the borrower must meet one of the following criteria:

  1. Have not been on title, held an ownership interest, or been named on a mortgage for a home in the United States within the past seven years, and to the best of their knowledge, their parents (biological or adoptive) do not currently have any ownership interest in a home in the United States.
  2. If the borrower's parents are deceased, they must not have had any ownership interest in a home in the United States at the time of their death.
  3. The borrower has at any time been placed in foster care or institutional care (a type of out-of-home residential care for large groups of children by non-related caregivers).

Why the First-Generation Homebuyer Requirement Matters

The California Dream For All Shared Appreciation Loan program aims to promote homeownership among individuals who may not have had the same opportunities or support to purchase a home as others. By requiring at least one borrower to be a first-generation homebuyer, the program helps level the playing field and provides a path to homeownership for those who may have faced additional barriers.

How Tennant Lending Can Help You Navigate the Dream For All Program

At Tennant Lending, our experienced mortgage professionals are well-versed in the California Dream For All Shared Appreciation Loan program and can help you determine if you meet the first-time and first-generation homebuyer requirements. We'll work with you to gather the necessary documentation and guide you through the application process, ensuring that you have the best possible chance of qualifying for this unique homeownership opportunity.

Don't let uncertainty about your eligibility keep you from pursuing your dream of homeownership. Contact Tennant Lending today to learn more about how we can help you navigate the California Dream For All Shared Appreciation Loan program and take the first step toward owning your own home.

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