Dream For All | Shared Appreciation Loan (2024)

FAQs

Who qualifies for the California Dream for All program? ›

Eligibility. One borrower must be a first-generation homebuyer. All borrowers must be first-time homebuyers. Income must meet CalHFA Income Limits for the county you are purchasing in.

A shared appreciation mortgage (SAM) is when the borrower or purchaser of a home shares a percentage of the appreciation in the home's value with the lender. In return for this additional compensation, the lender agrees to charge an interest rate that is below the prevailing market interest rate.

Program Summary

The California Dream for All Program provides first time home buyers with an eye popping 20% down payment assistance loan at 0% interest. No monthly payments. You pay the money back when you sell, refinance a 2^nd time or pay the loan off after 30 years.

Revised Program Eligibility and Key Program Highlights

Furthermore, the program has broadened its reach by lowering the income eligibility threshold from 150% to 120% of the area median income. Borrowers must have a minimum credit score of 680.

Interest-Free Dream Loan

The Dream loan will provide a loan for 20% of the purchase price to be used for the down payment or closing costs. This is an interest-free loan; only the principal amount will need to be repaid, plus 15% to 20% of the home's appreciation.

Shared appreciation mortgages offered through affordable home-buying programs can make homeownership more accessible to lower-income buyers by reducing upfront costs and down payment requirements. Sometimes, using a SAM can reduce the size of your primary mortgage and make it easier to qualify for financing.

Most homebuyers rely on traditional mortgage loans to purchase real estate. But buyers willing to give up some of their future equity, may have other options to consider. A shared appreciation mortgage (SAM) allows buyers to leverage their home's future value for more affordable financing.

Appreciation Loan provides up to 20% down payment and shares in up to 20% of the home price appreciation. (1:1) program appreciation share: Program appreciation share is equal to the Shared Appreciation Loan amount (i.e., the original principal amount) as a per- centage of the home value.

While you can make payments on the loan to reduce accrued interest, or principal, no payments are required until the loan is called due, at maturity of the first, sale of the property, transfer of title, a refinance or assumption of the first.

What is the debt to income ratio for California Dream for All? ›

Applicants must also have a credit score of 680 and a debt-to-income ratio of no more than 45%. Read the full list of eligibility requirements for California Dream for All (PDF).

California Dream For All Mortgage Program 2023. Update September 16, 2024: The California Dream For All is coming back! See below for details.

Income limits vary by county. For example, applicants in Marin, San Francisco and San Mateo counties cannot earn more than $277,000. Santa Clara County has the highest income limit – $287,000. Applicants must also pass a background check, must be pre-approved and complete an online homebuyers course.

Due to extremely high demand, the California Housing Finance Agency (CalHFA) used a random selection process to ensure all 18,000 applicants had an equal chance at receiving funding from the $255 million available from the second round of Dream For All.

The California Dream Act allows undocumented and nonresident students (US citizens and eligible non-citizens) who qualify for a non-resident exemption under Assembly Bill 540 (AB 540) to receive certain types of financial aid such as: private scholarships, state administered financial aid, California College Promise ...

The California Dream Act allows undocumented students, Deferred Action for Childhood Arrivals (DACA) recipients (valid or expired), U Visa holders and students under Temporary Protected Status (TPS), who qualify for a non-resident exemption under Assembly Bill 540 (AB 540), Senate Bill 2000 (SB 2000) and Senate Bill 68 ...

All borrowers must occupy the property as their primary residence within 60 days of closing. Income must be less than or equal to 120% of the area median income. Borrowers must be U.S. citizens or a Qualified Alien, and at least one borrower must be a California resident.

Qualifications. Dream recipients live in the United States, including Alaska, Hawaii and Puerto Rico, are 18 and older, are diagnosed with a life limiting illness with a life expectancy of 12 months or less, and lack the resources to fulfill the Dream themselves.