California Dream For All Shared Appreciation Loan

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

• One borrower must be a first-generation homebuyer.
• One borrower must be current resident of California.
• All borrowers must be first-time homebuyers.
• Income must meet CalHFA Income Limits for the county you are purchasing in.

Next Steps

1. Talk to a CalHFA Approved Lender who is offering the Dream For All program.
2. Work with your loan officer to determine what you need to do to secure a California Dream For All (DFA) Lender Pre-Approval Letter. You’ll need this letter in order to register for a DFA voucher.
3. Take the 1-hour California Dream For All education course which covers what shared appreciation is and how it affects your mortgage repayment. This course is delivered online and is free.
4. Gather documents:
• California Dream For All (DFA) Lender Pre-Approval Letter
• Government ID: Passports, driver’s license, state-issued ID, military ID, permanent residence cards, visas or employment authorization documents
• Foster care documentation (if applicable): Foster Care Verification Form/Letter or court documents
5. Sign up for our enews to get updates

Documents Needed

• California Dream For All (DFA) Lender Pre-Approval Letter
• Government ID: Passports, driver’s license, state-issued ID, military ID, permanent residence cards, visas or employment authorization documents
• Foster care documentation (if applicable): Foster Care Verification Form/Letter or court documents
• The DFA Voucher application will require information for both parents of the designated first-generation borrower(s) including:
  • Name
  • Date of birth
  • Date of death (if applicable)
  • Current address
• Proof of parent relationship
  • Birth Certificate
  • Adoption papers
• Sign up for our enews to get updates

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Video Spotlight

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Shared Appreciation Examples

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

Shared Appreciation Examples

Example 1
	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
	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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Interest Rate

What is the interest rate?
Interest rates will vary depending on your financial circumstances, lender fees, and other factors. Interest rates can also change daily. We recommend that you check with a CalHFA-approved loan officer to receive an accurate rate quote for this program.

CalHFA does not lend money directly to consumers. CalHFA works through and uses approved lenders to qualify consumers and to make all mortgage loans. The fees you pay could be different depending on the lender and the program. View sample Annual Percentage Rates (APRs) here.

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Homebuyer Education Requirement

CalHFA firmly believes that homebuyer education and counseling is critical to the success and happiness of a homeowner, and requires homebuyer education and counseling for first-time homebuyers using a CalHFA program.

Who has to take this Homebuyer Education and Counseling course?

Only one occupying first-time borrower on each loan transaction.

How do I take this education and counseling course?

• ONLINE: eHome's eight-hour Homebuyer Education and Counseling course is the only online course accepted by CalHFA. (fee: $100) Other online courses like Frameworks and HomeView are not acceptable because they do not provide a one-hour, 1-on-1 counseling follow-up session.

OR

IN-PERSON or VIRTUAL: Live Homebuyer Education and Counseling in-person or virtually though NeighborWorks America or any HUD-Approved Housing Counseling Agency
(fee: varies by agency)

AND

California Dream For All Shared Appreciation Loan Education

• ONLINE: The California Dream For All education is free and online only.

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