CalFHA Dream For All Shared Appreciation Loan

CalHFA Dream For All Shared Appreciation Program.

CalHFA announced their new Dream For All program, a shared appreciation loan of up to 20% of the sales price available to moderate to higher income first time homebuyers. 

The CalPlus ZIP loan for closing costs and their MyHome loan for down payment assistance have been offered by CalHFA for decades.  Though the programs have helped thousands of families purchase their first home, the lower income limits and smaller loan amounts left some out in the cold. smaller amounts  

The Dream For All program, which will be available beginning March 27, 2023, is the solution for borrowers making more money but who need to assistance with down payment.

This program will offer borrowers  up to 20% of the sales price or appraised value (whichever is less) in exchange for a share of the appreciation when the home is sold.

The full program guidelines have not been released yet, but this is what we learned from the Program Bulletin released on March 6th: 

Income Limits

This program will be available to homebuyers with income of up to 150% of the area median income. What do those limits look like? 

San Diego County: $160,350
Riverside County: $131,100
LA & Orange Counties: $146,850
Imperial County: $95,850

How It Can
Be Used

The funds from the shared appreciation loan can be used towards your down payment and or closing costs and must be used along with a CalHFA first mortgage.  The program cannot be combined with the CalPlus ZIP or My Home programs.

How It Works

You and CalHFA will split the appreciation of your home once you sell it. The split will depend your income as it relates to the Area Median Income at the time of purchase.

Those making 80-150% will pay back the original principal balance plus a percentage equal to the percentage provided at closing.

Borrower who were at less than 80% of AMI will pay the original principal balance plus a .75:1  split based on the percentage provided at closing.

Example of CalHFA Dream For All shared appreciation loan payback for less than 80% AMI

It is expected that the Dream For All first mortgage will follow similar credit score and debt to income ratio requirements as the CalPlus program.  For those unfamiliar with those requirements, here is an overview

Property TypeCredit ScoreMax DTI
Single Family Detached & Condos68045.00%
Manufactured Homes68045.00%

Ready to find out more?

There is only one way to find out if this program, or one of the many others I have access to, is the right one for you. 
Get PreApproved by me!

Reach out to me if you are ready to make your dream home a reality.

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