Registration for the California Dream for All Program opened on Tuesday, February 24, according to the California Housing Finance Agency.
The program provides substantial financial support for first-time homebuyers. It offers up to 20% assistance for down payment or closing costs, capped at $150,000 per applicant. Unlike traditional first-come, first-served programs, qualified applicants will be selected through a random drawing.
Specific eligibility requirements govern program participation. One borrower must be a first-generation homebuyer, all borrowers must be first-time homebuyers and one borrower must be a California resident. Additionally, household income must fall within the county limit where the applicant intends to purchase.
Prospective buyers must understand the significant financial obligation associated with the program. When homeowners sell, transfer, or pay off their first mortgage in full, they must repay the original down payment loan plus a share of the home’s appreciation.
“So basically, if you purchased the home you know, $700,000 today, and later on down the road you find that the home is appreciated you know to $800,000 so if you sell the house and you gain you know, two to three hundred thousand dollars from it 15-20 percent of that equity is going to go back to the program because that actually helps fund it more again in the future,” said Raul Lopez, a real estate professional.
The program works best for buyers with long-term homeownership plans. “I think this program is going to be for someone who intends to be in the home for a long period of time, possibly their forever home. It really just depends. I think if you’re trying to use this program to move with the next three to five years, I think you should reconsider your options then but I think if your intent is to stay within 15-20 years, I think this program is definitely for you,” Lopez said.
Selected applicants must meet a compressed timeline to complete the purchase. After qualification, buyers have just 90 days to find and secure a home using their voucher.
Registration for the California Dream for All Program will close on Monday, March 16.
The City of San Diego is also offering financial assistance to middle-income San Diegans trying to buy their first home. Through the San Diego Housing Commission First-Time Homebuyer Middle-Income Program, eligible first-time homebuyers can receive $40,000 in down payment assistance and an additional $10,000 grant to cover closing costs.
The program supports households earning between 80% and 150% of the Area Median Income. For example, a family of four earning between $132,400 and $196,200 may qualify. The program is available for homes with a maximum sales price of $1,250,000, and applicants must meet eligibility requirements, including a minimum credit score of 640 and at least two years of consistent work history.
Residents interested in the San Diego Housing Commission’s program can learn more here. For more information on the California Dream for All Program, click here.