California Dream For All Shared Appreciation Loan

Video Spotlight | Eligibility | Next Steps | Program FAQ | Shared Appreciation

The Dream For All Shared Appreciation Loan is a down payment assistance program for first-time homebuyers to be used in conjunction with the Dream For All Conventional first mortgage for down payment and/or closing costs.

Upon sale or transfer of the home, the homebuyer repays the original down payment loan, plus a share of the appreciation in the value of the home.

Program Highlights

  • Offers up to 20% for down payment or closing costs, not to exceed $150,000
  • Homebuyer must register for a voucher. A randomized drawing will select registrants who will receive the voucher. This will not be first come, first served.

Eligibility

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Next Steps

In the next several weeks, the random selection process will take place at which time the status will be updated for all qualified applications to either:

  • Not Selected: You can still work with a CalHFA Approved Lender and explore other CalHFA down payment assistance options like MyHome and CalPLUS with ZIP.
  • Waitlist: check your voucher portal account periodically and monitor your email. If a voucher position becomes available and you are next on the waitlist, your status will change to Voucher Issued, and you will be notified right away by email.
  • Voucher Issued: You will see this status if you are randomly selected to receive a voucher! We will email detailed instructions and next steps to you along with your voucher.

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Program FAQ

California Dream For All Shared Appreciation Loan

When will I hear if I was successful in receiving a "Dream for All" voucher?
After April 29th, can I still update my application?
If my application is in "Not Selected" status, can I cancel my application and start a new one?

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Shared Appreciation

Shared Appreciation is a little more complex than a typical mortgage loan, so weíve put together a few examples for you.

Shared Appreciation Examples
Example 1
Example #1: Borrower is a moderate income homebuyer Image Borrower is a moderate-income homebuyer
  • Dream For All provides a loan for 20% of the home purchase price.
  • The homeowner pays back the original loan amount plus 20% of any appreciation in the value of the home.
Example 2
Example #2: Borrower income less than or equal to 80% AMI using the HomeReady Lookup Tool Image Borrower income less than or equal to 80% AMI using the HomeReady Lookup Tool
  • Reduced (0.75:1) program appreciation share
  • Program appreciation share is equal to 0.75 times the Shared Appreciation Loan Amount (i.e., the original principal amount) as a percentage of the home value
  • Dream For All provides a loan for 20% of the home purchase price.
  • The homeowner pays back the original loan amount plus 15% of any appreciation in the value of the home

 

 

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