Dream For All Shared Appreciation Loan down payment assistance program

The California Housing Finance Agency, also known as CalHFA, is rolling out a new down payment assistance program for moderate income and low income first-time home buyers which is known as the “Dream for All Shared Appreciation Loan.” It provides the qualified borrower with the 20% down payment in exchange for a share of the appreciation in value of the home. When the borrower eventually sells the property, they will repay the original down payment loan plus a share of the appreciation in the value of the home.

There are a handful of requirements that a borrower must meet, plus a few property requirements. In general, the borrower must be a first-time buyer, occupy the property that they are buying as their primary residence, complete a couple of homebuyer education counseling courses, and not exceed CalHFA and Fannie Mae AMI income limitations. The property must be a single-family, one-unit residence. No duplexes, triplexes nor 4-plexes. But, a property with a guest house, granny unit, or in-law quarters may be eligible. Manufactured housing is also permitted, and condominiums qualify as long as they meet already existing guidelines of the first mortgage. In any case where there are conflicting guidelines for a borrower or for the property being purchased, the lender must follow the more restrictive guideline.  

This Shared Appreciation loan is more complex than a typical mortgage loan, so CalHFA put together two slides demonstrating the shared appreciation model.

A moderate income borrower will share 20% of the appreciation back to the program.

A low income borrower will share 15% of the appreciation back to the program.

If you are interested in learning more about this program and determining if it can help you in your goals of owning your first home, reach out to me and I’d be happy to put you in contact with a phenomenal loan officer expert.

Mark Delgado, Realtor and Broker Associate with Coldwell Banker Realty, can be reached at 916.705.2298 or you can email him at mark.delgado@cbnorcal.com