The Dream for All program is a great opportunity for first-time homebuyers.
California is making homeownership more accessible to home buyers by bringing back the California Dream for All program which will open in April 2024 and closes in May. The California Dream for All Program, or Shared Appreciation Loan, is a state-sponsored initiative that was launched last year. It became popular, especially for first-time home buyers, because it provides up to 20% of the purchase price or $150,000, whichever is lower in the future when the owner sells the property.
The loan would then get repaid, plus a share of the home’s appreciation. Last year’s program ran out of the $300 million set aside for the assistance in just 11 days, and over 21 people were able to use the program to buy a home in California.
For this year’s relaunch, California will be adding $250 million in assistance, providing a chance for many first-time buyers to achieve their dream of homeownership. Applicants will be chosen through a lottery system and a voucher will be given to be used within 60 days. To have a better chances of being chosen, take note of the following qualifications:
- First time homeowners in California, or if you did, it must have been sold at least three years ago.
- Intending to live in the purchased home as your primary residence
- Working with state approved lenders and complying with their requirements
- Income should be at or below 120% of the area’s median income (down from 150% last year).
“California will be adding $250 million in assistance, providing a chance for many first-time buyers to achieve their dream of homeownership.”
This is a great opportunity because when the homeowner sells the house, the state will portion back 15% or 20% of any appreciation of the home, depending on your income, and in turn use that money to help out the next first-time homebuyer. In the event that your home hasn’t gone up in value but you still want to sell, you’d be responsible for paying back the original 20% loan.
If you are planning to buy a home this year and see that you qualify for the program, we highly recommend you speak with a state approved lender as soon as possible to discuss your eligibility and get your application ready for the launch this April.
We can also connect you with a local lender who can guide you through the process. All you need to do is give us a call or send us an email. Don’t miss out on this opportunity to own your dream home in California. Contact us today to get started.