The biggest hurdle for many hopeful first-time home buyers, whether it\u2019s a starter home in Sacramento or the dream home near Folsom Lake\u2014 isn\u2019t the monthly mortgage payment. It\u2019s the down payment.<\/p>\n
With an average sale price of $535,000 in Sacramento saving 20% seems impossible for many.<\/p>\n
Fortunately, the State of California is bringing back its popular, game-changing program. The CalHFA Dream For All Shared Appreciation Loan is returning for 2026, and for eligible Sacramento-area buyers, it could mean up to $150,000 in down payment assistance.<\/p>\n
Before you jump in, note that it is a structured lottery system with specific eligibility requirements that differ from other programs.<\/p>\n
What is the \u201cDream for All\u201d Program?<\/p>\n
The California Dream for All (DFA) program provides first-time buyers with a loan for up to 20% of the home\u2019s purchase price (or appraised value) to be used for the down payment and\/or closing costs.<\/p>\n
The funding cap is $150,000.<\/p>\n
What does \u201cShared Appreciation\u201d mean?<\/p>\n
This loan differs from traditional home loans\/mortgages:<\/p>\n
No Monthly Payments: That\u2019s right. You don\u2019t make any payments on the 20% assistance loan while you live in the home.<\/p>\n
Repayment: You repay the original amount borrowed plus a share of the home\u2019s appreciation only when you sell, refinance, or transfer the home.<\/p>\n
How it Works: Generally, if you receive 20% assistance, you pay back 20% of the home\u2019s increased value at the time of sale.<\/p>\n
For example:<\/p>\n
For example: You buy a home for $500,000. Dream for All provides a 20% down payment loan of $100,000. You take out a standard mortgage for the remaining $400,000. Because you have a full 20% down, you usually avoid paying monthly Mortgage Insurance (PMI), saving you hundreds every month.<\/p>\n
Fast forward 5 years, and you sell the home for $600,000. The home has appreciated by $100,000. From the sales proceeds, you would pay the state back their original $100,000 loan, plus 20% of the appreciation ($20,000). You keep the other $80,000 of profit, plus all the equity you built by paying down your primary mortgage. It\u2019s a win for you and for the state.<\/p>\n
Am I Eligible in the Sacramento Region?<\/p>\n
To qualify for this specific program in 2026, you must meet these key criteria:<\/p>\n
1. The \u201cFirst-Generation\u201d Requirement<\/p>\n
At least one borrower must be a First-Generation Homebuyer. This means you have not owned a home in the last 7 years and, to the best of your knowledge, your parents do not currently own a home in the United States.<\/p>\n
2. 2026 Income Limits<\/p>\n
The Dream for All program has strict income caps than. For the 2026 round, the maximum household income is:<\/p>\n
Sacramento County: $191,000<\/p>\n
Placer County: $191,000<\/p>\n
El Dorado County: $191,000<\/p>\n
Yolo County: $215,000<\/p>\n
The 2026 Roadmap: How to Enter the Lottery<\/p>\n
Unlike previous years, this is a randomized lottery. There is no advantage to applying the first minute the portal opens, but you must be prepared before the window closes.<\/p>\n
Step 1: Get Your \u201cDFA\u201d Pre-Approval (Required) You must work with a CalHFA-approved lender to get a specific \u201cDFA Lender Pre-Approval Letter\u201d. You cannot enter the lottery without this document.<\/p>\n
Step 2: Complete Homebuyer Education You must complete 8 hours of standard homebuyer education plus a specialized, free 1-hour online session on Shared Appreciation.<\/p>\n
Step 3: Register for the Lottery The registration portal opens February 24, 2026, and closes at 5:00 PM on March 16, 2026.<\/p>\n
Step 4: The Selection CalHFA will randomly select applicants and establish a waitlist for each region. If selected, you will have 90 days to find a home and get under contract.<\/p>\n
Ready to Enter the Lottery?<\/p>\n
The clock is already ticking. You need that specialized Pre-Approval Letter in hand before the portal opens on February 24th.<\/p>\n