CA Dream For All shared appreciation home loan provides up to 20% down payment assistance

Published on

Photo credit California Housing Finance Agency

STATEWIDE – The California Housing Finance Agency (CalHFA), announced March 26, that the California Dream For All (DFA) loan information is now posted on their website. The first-time homebuyers program provides up to 20% down payment assistance in return for a share of the appreciation in the home’s value.

The state plans to provide $300 million in payments to help 2,300 low to moderate income first-time buyers. 

The DFA Appreciation Loan is to be used in conjunction with the DFA Conventional first mortgage for down payment and closing costs. Upon sale or transfer of the home, the homebuyer repays the original down payment loan, plus a share of the appreciation in the value of the home.

Photo credit: California Housing Finance Agency

How the loan works

CalHFA provides examples of how the program works. 

A low income borrower who purchases a home for $500,000 would receive $100,000 for the downpayment and closing costs. After 5 years of appreciation, CalHFA estimates the new home value at $640,000. If the borrower decides to sell, they would owe the $100,000 and 15% of the appreciation – $121,000 total. Their homeowner equity would amount to $149,000.

In the same scenario, a moderate income borrower would owe $100,000 and 20% of the appreciation, in this case, $128,000 total. The home equity would amount to $142,000.

Photo credit: California Housing Finance Agency

Other details

Repayment of the DFA principal and any share of the appreciation on the Shared Appreciation Loan is due and payable at the earliest of the following events:

  • Transfer of title 
  • Sale of the property 
  • Payoff of the first loan 
  • Payoff of the subordinate loan principal balance 
  • Refinance of the first loan – see program handbook for details 
  • The formal filing and recording of a Notice of Default (unless rescinded)

RELATED: WISH grant provides first time homebuyers up to $22,000 for downpayment

There is a cap on the amount of appreciation owed. The most a borrower will ever repay is 2.5 times the original loan amount. If the appreciation of the property is zero or less, no additional monies would be due.

For more information about the California Dream For All Shared Appreciation Loan visit


Latest articles

Smoke advisory due to Vista fire in effect until July 10

SAN BERNARDINO COUNTY – The Mojave Desert Air Quality Management District (MDAQMD) is advising...

CA private industry lost 154,000 jobs while the public sector gained ​​361,000 jobs

CALIFORNIA – The California Legislative Analyst Office (LAO) published a report, July 1, with...

Victorville offering free kitchen food scrap containers for residents

VICTORVILLE – The City of Victorville, on July 8, announced that they would be...

Proposition 32 will allow voters to decide on $18 minimum wage for all California workers

CALIFORNIA – California voters will get to decide, November 5, on Proposition 32, a...
Powered by

More like this

Board of Supervisors requesting CA to declare a state of emergency for insurance crisis

SAN BERNARDINO COUNTY – The San Bernardino County Board of Supervisors passed a resolution,...

California gas tax to increase to 59.6 cents per gallon July 1

CALIFORNIA – The California Department of Tax and Fee Administration (CDTFA) announced to retailers...

CalHFA issues all 1,700 vouchers for down payment assistance program

CALIFORNIA – Governor Gavin Newsom announced, June 28, that 1,700 first-generation homebuyers have been...