Benefits of the program

• No down payment required
• Lower payment due to the the 20% shared equity
• Qualify for more with the 20% down payment provided by CAlHFA
• No or very low monthly mortgage insurance premium (depends how you decide to use the 20% equity share)
• No up-front mortgage premium to be financed back into the loan

Eligibility

• All borrowers must intend to occupy the home as their primary residence.
• At least one borrower must be a 'first-generation homebuyer'.
• Defined as a person not having ownership interest or named on a mortgage to a home in the US for the last 7 years AND whose parents do not have any present ownership interest in a home in the US or, if deceased, whose parents did not have any ownership interest in the time of death. .OR. An individual who has at any time been place in foster care or institutional care.
• At least one borrower must be a current resident of California.
• All borrowers must be first time homebuyers.
• Defined as a person who has not owned and occupied a home in the last three years and has not lived in a home owned by a spouse in the past three years.
• Income must fall within CalHFA Income Limits. Download the income limits here --> CalHFA Income Limits
• CalHFA required a FREE online course that further explains the program. You can find that here: CalHFA DFA Education
• CalHFA also requires a first-time homebuyer course. This course is at a cost of $99 and does not need to be taken until you have been chosen by CalHFA to participate in the program. That course can be found here: CalHFA EHome Online Education

Shared Equity

The 20% down payment provided by CalHFA is considered 'shared equity'. Shared equity examples are:

Borrower is a moderate-income homebuyer

• Dream For All provides a loan for 20% of the home purchase price (up to $150,000)
  
• The homeowner pays back the original loan amount plus 20% of any appreciation in the value of the home
• Click for example

Borrower income less than or equal to 80% of the annual median income

• The program appreciation share is reduced to 75% of the original loan amount
• The homeowner pays back the original loan amount plus 15% of any appreciation in the value of the home.
• Click for example