Shared Appreciation Loan
The Dream For All Shared Appreciation Loan is a down payment assistance program for first-time homebuyers to be used for down payment and/or closing costs. The Dream For All Shared Appreciation Loan is a down payment assistance program for first-time homebuyers to be used for down payment and/or closing costs.
Features & Eligibility
The DPA Second Mortgage provided through the California Housing and Finance Authority and is available for Purchase transactions as a deferred 30-year Second Mortgage Loan with a 30-year term and a zero percent note rate. It accrues no interest, has no monthly payments, but is due and payable upon sale, refinance or payoff of the First Mortgage. The program features:
- Financial assistance up to 20%, to use for down payment and/or closing costs
- First time homebuyers only
- Flexible income limits (low-to-moderate income)
- Statewide eligibility
- Primary residence only
- Single family homes and Fannie Mae approved condominiums and manufactured homes allowed
- Used in conjunction with the Dream For All Conventional first mortgage for down payment and/or closing costs.
- Homebuyer education counseling required prior to closing
Shared Appreciation
Upon the sale or transfer of the home, the original down payment assistance plus a share of the appreciation in the value of the home, based on the homebuyer’s income, is paid back from the proceeds of the sale:
Moderate income: Borrower income greater than 80% AMI
- (1:1) program appreciation share
- Dream For All provides a loan for 20% of the home purchase price.
- The homeowner pays back the original loan amount plus 20% of any appreciation in the value of the home.
Lower income: Borrower income less than or equal to 80% AMI
- Reduced (0.75:1) program appreciation share
- Program appreciation share is equal to 0.75 times the Shared Appreciation Loan Amount (i.e., the original principal amount) as a percentage of the home value
- Dream For All provides a loan for 20% of the home purchase price.
- The homeowner pays back the original loan amount plus 15% of any appreciation in the value of the home
How do I apply for this loan program?
Since CalHFA is not a direct lender, our mortgage products are offered through private loan officers who have been approved & trained by our Agency. These loan officers can help you find out more about CalHFA’s programs and guide you through the home buying process.Fill out the form below to be contacted by a participating lender and learn more:
CalFHA Dream For All Program Paused Effective 4/7/2023
CalHFA launched their Dream for All product on March 27, 2023 and has had an enormous response from California first-time homebuyers! We have just been advised from CalHFA that all funds currently available for the Dream For All Shared Appreciation Loan have been reserved as of 4/7/2023. At this time any Dream For All loans not currently locked with CalHFA will not be available to proceed with the product.
You are encouraged to consider other products with down payment assistance. To learn more about the products available to you, please complete the form below:
