Loan Term and Payment Deferral

The California Dream For All Shared Appreciation Loan is designed to help first-time, first-generation homebuyers achieve their dream of homeownership. One of the key features of this loan is its term and payment structure.

Matching the First Mortgage Term

The term of the Dream For All loan is set to match the term of the CalHFA first mortgage, with a maximum term of 30 years. This means that if your first mortgage has a term of 30 years, your Dream For All loan will also have a term of 30 years.

Deferred Payments

Another important aspect of the Dream For All loan is that payments are deferred for the life of the first loan. This means that you will not be required to make monthly payments on your Dream For All loan as long as your first mortgage remains active.

Repayment Triggers

While you won't have to make monthly payments on your Dream For All loan, there are certain events that will trigger repayment of the loan principal and any shared appreciation:

  1. Transfer of title
  2. Sale of the property
  3. Payoff of the first loan
  4. Payoff of the subordinate loan principal balance
  5. Refinance of the first loan (see the "Refinancing and Re-subordination" section for more details)
  6. The formal filing and recording of a Notice of Default (unless rescinded)

It's important to note that the Dream For All loan is not assumable, meaning that if you sell your home, the new buyer cannot take over your Dream For All loan.

Tennant Lending: Your Guide to the Dream For All Loan

At Tennant Lending, we understand that navigating the homebuying process can be challenging, especially when it comes to unique programs like the California Dream For All Shared Appreciation Loan. Our experienced mortgage professionals are here to help you understand the terms and conditions of this loan and guide you through the application process.

We'll work with you to ensure that you meet all the eligibility requirements, including the first-time and first-generation homebuyer criteria, and help you find the right CalHFA first mortgage to pair with your Dream For All loan.

Contact Tennant Lending today to learn more about how the California Dream For All Shared Appreciation Loan can help you achieve your homeownership goals.

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