CalHFA says down payment voucher good for up to $150,000 and other updates

Last Updated on July 21, 2024 by The HD Post Staff

CALIFORNIA – The California Housing Finance Agency (CalHFA) sent out a program update, July 17, to all Dream For All (DFA) voucher recipients.

“Each DFA voucher is good for the maximum loan amount of 20% of the sales price/appraised value or $150,000, whichever is less,” said CalHFA in a news release.

The agency said their update is to provide a quick refresher on several key elements of DFA.

1,700 vouchers reserved last month

Last month, Governor Gavin Newsom announced that 1,700 first-generation homebuyers had been conditionally approved for the DFA Shared Appreciation Loan program.

The program provides homebuyers with vouchers up to 20% of a home’s value for down payment and closing cost assistance.

Newsom’s office says that due to the extremely high demand, CalHFA used a random selection process to ensure all 18,000 applicants had an equal chance at receiving funding from the $255 million available.

Additional updates

Additional updates in the news release provide guidance to recipients during the home buying process:

Adding/removing borrowers
Homebuyers can add or remove borrowers as long as all borrowers on the loan meet CalHFA and DFA guidelines. However, the applicant that was selected as First-Generation in the DFA portal cannot be removed or replaced.

Voucher transfers
DFA vouchers are not transferable to another borrower. If the applicant is no longer interested in using their voucher, they should log into their portal account and withdraw their application so it can go to the next person on the waitlist.

DFA reservations
The DFA voucher number is only good for one reservation and must be entered into the MAS system exactly how it appears as it is case-sensitive.

Voucher expiration date
The DFA applicant must be in contract for a house and the lender must reserve the loan in MAS before the voucher expiration date.

Homebuyer education
DFA applicants must enroll in the online Homebuyer Education and Shared Appreciation Loan Education and it’s better to get those taken care of as soon as possible.

DFA portal
Vouchers can be accessed through the DFA Portal.

Dream For All has helped nearly 4,000 first-time homebuyers

According to Newsom’s office, DFA has provided nearly 4,000 first-time homebuyers with down payment funding assistance.

When DFA recipients sell or refinance the home, they will repay the initial amount of assistance, plus up to 20% of any increase in the home’s value.

“Those proceeds will then be used to fund the next round of homeowners, continuing the cycle of expanded homeownership opportunities,” said Newsom’s office.

For more information on the Dream For All program visit https://www.calhfa.ca.gov/dream/