Calculating Your Repayment Amount Based on Income and Home Appreciation

When you decide to sell, refinance, or transfer your home, or if you pay off your first mortgage, you will need to repay your California Dream For All Shared Appreciation Loan. The amount you'll need to repay consists of two parts: the original loan amount and a share of your home's appreciation. The percentage of appreciation you'll share depends on your Area Median Income (AMI) at the time you obtained the loan.

Repayment for Borrowers with Income Under 80% AMI

If your income was under 80% of the AMI when you obtained your California Dream For All Shared Appreciation Loan, you will share 15% of your home's appreciation. For example, if your original loan amount was $80,000 and your home appreciated by $200,000, your shared appreciation would be calculated as follows:

$200,000 (home appreciation) x 0.15 (15% share) = $30,000 (your shared appreciation)

In this scenario, you would repay the original $80,000 loan amount plus $30,000 in shared appreciation, for a total of $110,000.

Repayment for Borrowers with Income Over 80% AMI

If your income was over 80% of the AMI when you obtained your California Dream For All Shared Appreciation Loan, you will share 20% of your home's appreciation. For example, if your original loan amount was $100,000 and your home appreciated by $200,000, your shared appreciation would be calculated as follows:

$200,000 (home appreciation) x 0.20 (20% share) = $40,000 (your shared appreciation)

In this scenario, you would repay the original $100,000 loan amount plus $40,000 in shared appreciation, for a total of $140,000.

Appreciation Share Cap

To ensure affordability and limit the total amount you'll need to repay, the California Dream For All Shared Appreciation Loan program caps your shared appreciation at 2.5 times the original loan amount. This means that, even if your home experiences significant appreciation, you will never be required to pay more than 2.5 times your original loan amount in shared appreciation.

Tennant Lending: Your Partner in Understanding Shared Appreciation Loans

At Tennant Lending, we understand that the concept of shared appreciation loans may be new to many homebuyers. That's why our knowledgeable mortgage professionals are here to help you understand the repayment terms of the California Dream For All Shared Appreciation Loan and how they may impact your long-term homeownership costs.

As a CalHFA-approved lender serving Northern California, we are committed to providing you with the information and guidance you need to make informed decisions about your home financing options. Contact Tennant Lending today to learn more about the California Dream For All Shared Appreciation Loan and how we can help you navigate the repayment process.

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