20% Down Payment Assistance Program (Update)
As of January 18, 2024, program details for the California Dream for All Shared Appreciation 20% Down Payment Assistance Loan Program have been released and is scheduled to launch in April 2024.
Many of you may recall the Cal HFA Dream for All Shared Appreciation 20% Down Payment Assistance Program from last year, which depleted its $300 million budget in just 11 days.
This year, the California Housing Finance Agency has made changes to reach a more diverse group of borrowers across the state. Unlike the previous first-come-first-serve basis, the program will now use a lottery system. The upcoming round will focus on first-generation homebuyers, ensuring an equitable distribution of loans.
Interested homebuyers can start working with an approved loan officer or lender now, preparing to submit applications in April for this lottery. As many of you know, purchasing a home for the first time can be challenging, with the down payment being the most formidable obstacle.
The state will provide up to 20% of the purchase price or $150,000, whichever is lower. The loan, repayable with a share of the home's appreciation upon sale, reinvests into the program for others to benefit. Officials estimate that 1700 to 2000 lottery winners will receive vouchers, with a 60-day window to spend on their home purchase.
It's crucial to note that not every lender is approved to participate in this program. Feel free to contact me for more information on qualifying for this program. Allow me to connect you with an approved lender and assist you in starting your application today.
