Unraveling the FAQs About CalHFA's Dream For All Program
Are you a first-time homebuyer in California struggling to save funds for a down payment? The California Housing Finance Agency's (CalHFA) new Shared Appreciation Program might be an excellent opportunity to check out! This innovative down payment assistance program, the "Dream For All Shared Appreciation Loan," is designed to help Californians climb the property ladder. In this blog, I'll dive into the most frequently asked questions to help you understand the program better.
1. What is the Dream For All Shared Appreciation Loans?
The "Dream For All" Shared Appreciation Loan is a down payment assistance program for first-time California homebuyers. This loan is a monetary support system for homebuyers who may not have the funds required for a hefty down payment.
2. Who qualifies for the Dream For All Shared Appreciation Loan?
To be eligible for this loan, you must meet the following criteria:
- Be a first-time homebuyer – someone who hasn't owned a property for the past three years
- Have an annual household income below the program's limits
- Complete a comprehensive homebuyer education course
- Plan to occupy the home as your primary residence, with no non-occupying borrowers
3. How does the Dream For All Shared Appreciation Loan work?
This program provides first-time homebuyers with a loan for a portion of their down payment. The loan is interest-free for the entire term, saving borrowers significantly during the repayment period.
The most unique aspect of the Dream For All program is the "shared appreciation" component. When you sell transfer title, or refinance your home, you're required to share the appreciation value with CalHFA. The shared appreciation value is calculated based on a fixed percentage multiplied by the current market value increase. This repayment structure aims to assist CalHFA in sustaining and growing its down payment assistance program.
4. Can I combine the Dream For All Shared Appreciation Loan with other CalHFA programs?
Yes, eligible homebuyers can combine the Dream For All Shared Appreciation Loan with other CalHFA programs, such as the MyHome Assistance Program or the School Facility Fee Down Payment Assistance Program.
5. How much money can I loan from the Dream For All Shared Appreciation Loan?
The specific amount you're eligible to receive will depend on several factors, such as your credit score, income, and home price. The Shared Appreciation Loan allows you to borrow up to 20% of the sales price or appraised value, whichever is less.
6. How can I apply for the Dream For All Shared Appreciation Loan?
To apply for the Dream For All Shared Appreciation Loan, you must work with a CalHFA-approved lender. A complete list of participating lenders can be found on the CalHFA website. These approved lenders will guide you through the application and approval process, ensuring you meet all the necessary criteria.
The Dream For All Shared Appreciation Loan offers a lifeline for Californian first-time homebuyers, making it possible to buy a home without a large down payment. If you think this might be the right fit for you, reach out to a CalHFA-approved lender today and take the first step towards homeownership. With thorough research and careful consideration, you'll be well on your way to realizing your dream of homeownership! Good luck!
