The State of California offers a new program to help first-time homebuyers

The California Housing Finance Agency (CalHFA) under Governor Newsom is launching a new program to benefit first-time homebuyers. The California Dream for All program will provide homebuyers who meet the qualifications with down payment support on the purchase of a California home. The program offers upwards of 20 percent of the purchase price or appraised value (whichever is lower) in the form of a shared-appreciation loan. The loan can be utilized as a down payment or towards closing costs.

As home prices have continued to escalate throughout California, it has become increasingly difficult for homeowners to secure sufficient funds for a down payment. Conventional home loans often require a 20 percent down payment from the buyer. Anything less generally results in a higher interest rate and, potentially, the requirement for Private Mortgage Insurance (PMI), which significantly increases costs.

The California Dream for All program provides a lending vehicle to avoid that situation. Used in conjunction with a Dream For All Conventional mortgage, the program is a shared appreciation  product where the State of California provides the homebuyer a down payment loan. The homebuyer agrees to repay the loan plus 20 percent of the appreciation of the home value. The homebuyer pays when they sell or transfer the home to a new lender.

Home equity is a proven vehicle for families to generate and pass on wealth. The California Housing Finance Agency developed the program in an effort to improve equitable access to homeownership.

You may be eligible if you:

  •     Are a first-time homebuyer
  •     Have a household income at or below the CalHFA Income Limits (varies by county)
  •     Use a Dream For All Conventional First Mortgage
  •     Complete a CalHFA-approved first-time homebuyer education and counseling course

UC Santa Cruz employees have access to Landed, which is a company that can help first-time homebuyers navigate the process and take advantage of the California Dream For All program.  For more information, please see California Dream For All or visit CalHFA

Set to launch on March 27, 2023, the California Dream for All program has limited funds, and demand is expected to be high.