California Dream for All: How to apply for 3rd round of home down payment assistance
The California Housing Finance Agency’s Dream For All program will begin accepting loan applications on Feb. 24 through March 16.
Updated: 5:30 PM PST Feb 4, 2026
Applications will begin to be accepted in February for the next round of funding for a down payment assistance program to help California first-time homebuyers.The California Housing Finance Agency’s Dream For All program will begin accepting loan applications on Feb. 24 through March 16. The Dream for All program lends borrowers up to 20% of a home’s price, up to $150,000. When the buyer sells or refinances, they repay the original loan amount, plus 15% or 20% of the appreciated value to the state of California, depending on whether the homeowner was a moderate-income or low-income borrower. That money is used to fund the next round of down payment assistance.The state says that these loans can help some first-generation homebuyers eliminate the need for mortgage insurance. According to the nonprofit organization California Forward, the program saves the average homeowner about $1,200 per month. CalHFA says they expect to make $150 million to $200 million available in 2026. At least 10% of the funding will go to applicants in a qualified census tract. Who is eligible for the program? At least one borrower must be a first-generation homeowner and a current resident of California. All borrowers must be first-time homebuyers. These are the borrower income limits by county in KCRA 3’s coverage area:Amador: $174,000Butte: $153,000Calaveras: $160,000El Dorado: $191,000Nevada: $197,000Placer: $191,000Sacramento: $191,000San Joaquin: $165,000Solano: $197,000Stanislaus: $156,000Sutter: $156,000Tuolumne: $160,000Yolo: $215,000Yuba: $156,000How does the application process work? Not everyone who applies will get the loan. There’s a randomized drawing to choose who receives a voucher. About $313 million in loans have been awarded so far from two earlier rounds, according to the state. That includes 2,601 loans that have closed, as of Jan. 25. If a homebuyer is selected, they are given a loan voucher and have 90 days to shop for a home. They can also apply for another 90-day extension. If they decide not to move forward, others from a waitlist are given the voucher.But those applied for the program in a previous round and weren’t selected still need to reapply for the newest round. What do you need to apply? The state says prospective homebuyers need to work with a CalHFA approved lender who can secure a lender pre-approval letter before they apply. Applicants also need to take a free, one-hour online education course about the program. Other documents that are needed include a government ID, parent information or foster care documentation, if applicable.For more information, click here. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
Applications will begin to be accepted in February for the next round of funding for a down payment assistance program to help California first-time homebuyers.
The California Housing Finance Agency’s Dream For All program will begin accepting loan applications on Feb. 24 through March 16.
The Dream for All program lends borrowers up to 20% of a home’s price, up to $150,000. When the buyer sells or refinances, they repay the original loan amount, plus 15% or 20% of the appreciated value to the state of California, depending on whether the homeowner was a moderate-income or low-income borrower.
That money is used to fund the next round of down payment assistance.
The state says that these loans can help some first-generation homebuyers eliminate the need for mortgage insurance. According to the nonprofit organization California Forward, the program saves the average homeowner about $1,200 per month.
CalHFA says they expect to make $150 million to $200 million available in 2026. At least 10% of the funding will go to applicants in a qualified census tract.
Who is eligible for the program?
At least one borrower must be a first-generation homeowner and a current resident of California. All borrowers must be first-time homebuyers.
These are the borrower income limits by county in KCRA 3’s coverage area:
Amador: $174,000Butte: $153,000Calaveras: $160,000El Dorado: $191,000Nevada: $197,000Placer: $191,000Sacramento: $191,000San Joaquin: $165,000Solano: $197,000Stanislaus: $156,000Sutter: $156,000Tuolumne: $160,000Yolo: $215,000Yuba: $156,000How does the application process work?
Not everyone who applies will get the loan. There’s a randomized drawing to choose who receives a voucher.
About $313 million in loans have been awarded so far from two earlier rounds, according to the state. That includes 2,601 loans that have closed, as of Jan. 25.
If a homebuyer is selected, they are given a loan voucher and have 90 days to shop for a home. They can also apply for another 90-day extension. If they decide not to move forward, others from a waitlist are given the voucher.
But those applied for the program in a previous round and weren’t selected still need to reapply for the newest round.
What do you need to apply?
The state says prospective homebuyers need to work with a CalHFA approved lender who can secure a lender pre-approval letter before they apply.
Applicants also need to take a free, one-hour online education course about the program.
Other documents that are needed include a government ID, parent information or foster care documentation, if applicable.
For more information, click here.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel