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Financing • March 27, 2023

CalHFA Dreams for All Shared Appreciation Program

by Jessica Perla

California Down Payment Assistance Program for first-time buyers just became available again.  Called CalHFA Dreams for All Shared Appreciation Program, first-time buyers can get up to 20% in a down payment on the purchase price in assistance. 

 

Requirements:

How it works: Upon sale or transfer of the home, the homebuyer repays the original down payment loan plus a share of the appreciation in the home’s value.

 

Example 1: Borrower income between 80% and 150% AMI using the HomeReady® Lookup Tool • 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 home’s value.

Example 2: Borrower income less than or equal to 80% AMI using the HomeReady® Lookup Tool • 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 home’s value.

 

Shared Appreciation Cap: The amount of the shared appreciation is capped at 2.5 times the original principal amount. • Example: Original Shared Appreciation Loan = $100,000 o Original loan amount times 2.5 = $250,000 o Maximum amount due at time of payoff = $350,000 (maximum appreciation plus original loan amount)

 

Why? 

 

Home equity has proven to be one of the strongest ways for families to build and pass on intergenerational wealth. CALHFA is committed to improving equitable access to homeownership for all Californians.

 

Contact Me, and I can connect you with a CalFHA-approved lender, and together, we can help you purchase a home.

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