Dream for All Phase II – $255 million fund for home down payment opening Spring 2024

CALIFORNIA – The California Housing Finance Agency (CalHFA) announced Thursday that the Dream For All shared appreciation loan program will open its application period in Spring 2024.

Dream For All Phase II will provide up to 20% down payment assistance to help historically underserved communities obtain homeownership. Upon the sale or transfer of the house the homebuyer repays the original down payment loan plus a share of the appreciation in the value of the home.

Phase I of the Dream For All program closed two weeks after CalHFA made 2,500 loan commitments. CalHFA estimates that Phase II will help an additional 2,000 households obtain homeownership.

New eligibility requirements

CalHFA Director of Homeownership Ellen Martin said there will be changes in the eligibility requirements. Applicants must now be first generation home buyers to qualify for the program.

“Dream for All will be specifically targeted to help those prospective homeowners that have not had the benefit of intergenerational wealth through home ownership and we really see this as an important tool to help resolve the homeownership and wealth gap in California,” said Martin.

To meet this new requirement, Martin says at least one of the borrowers on the loan:

has never been on title to a home;
have parents or legal guardians that have not owned a home in the United States in the last 10 years.

A borrower that has spent any time in the foster care system would also be defined as a first generation home buyer.

In addition, CalHFA is reducing the income eligibility requirement to 120% area median income (AMI) and limiting the amount of down payment funds that a borrower can contribute.

CalHFA is also instituting a cap on the shared appreciation loan amount.

Pre-registration and lottery

In addition to new eligibility requirements, CalHFA is implementing a pre-registration and lottery system.

Martin said the pre-registration system will allow borrowers to apply for a Dream For All loan. They will be selected at random for the opportunity to access the loan.

“They will then have a specified period of time to find a home and then come into our system and lock their loan rate,” said Martin.

Geographic set-asides

CalHFA said for Phase II they will be distributing the loan based on location — geographic set-asides.

Dream For All program vouchers will be issued proportionate to the number of households currently living in each region. Martin said that this will result in a shift from more inland areas of the state to the coastal areas.

CalHFA estimates that Los Angeles county will receive 500 vouchers. The Inland Empire will receive 200.

Martin said the geographic set-asides will be established based on where the borrower currently lives but a borrower can purchase a home in any county they are income qualified.

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