REDDING, Calif. — The California Dream for All program is reopening to assist first-generation, first-time homebuyers with their down payments.
The initiative offers a loan covering 20% of the down payment, which must be repaid upon selling or paying off the home, along with 20% of the home’s appreciation. Eric Johnson, a spokesperson for the California Housing and Finance Agency, said this money will be invested back into the program.
“That’s the great thing about this program. When you repay the loan, that money goes into a fund that’ll help future home buyers buy their first home, so it’s really a virtuous circle,” Johnson said.
First-time buyers, including those who haven’t owned a home in three years, must get pre-approved with an approved lender prior to applying. Mandy Phillips, Omega Mortgage Group branch manager, noted that this process is fairly quick.
“It’s generally pretty quick with most lenders that are approved for this program. For example, if I’m preapproving someone and they provide the documentation that has been requested, I can usually have their preapproval wrapped up within 48 hours,” Phillips said.
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The application window runs from Feb. 24 to March 16, with recipients selected via a lottery system. For more information, visit the California Housing Finance Agency website.