To qualify for the CalHFA Dream for All Program, one borrower must be a first-generation homebuyer, and all borrowers must meet the definition of a first-time homebuyer.

Are You a First-Time Homebuyer?

To qualify as a first-time homebuyer, you must meet specific criteria. CalHFA defines a first-time homebuyer as someone who has not owned and occupied their home in the last three years. Additionally, individuals who have not lived in a home owned by a spouse in the past three years also qualify.

If any of these circumstances occurred more than three years ago, or if you have never owned a home, you are eligible to apply for the benefits of CalHFA’s first-time homebuyer programs. It’s important to note that exceptions may apply, so we encourage you to speak with one of our loan officers for more detailed information and guidance.

Are You a First-Generation Homebuyer?

This distinction applies specifically to CalHFA’s California Dream For All Shared Appreciation Loan Program. To qualify for the Shared Appreciation Loan, at least one borrower must meet the definition of a first-generation homebuyer:

A first-generation homebuyer is defined as a homebuyer who has NOT been on title, held an ownership interest, or been named on a mortgage to a home (on permanent foundation and owned land) in the United States in the last seven years.

Additionally, to qualify as a first-generation homebuyer, the individual must meet one of the following criteria:

To the best of the homebuyer’s knowledge, their parents (biological or adoptive) do not have any present ownership interest in a home in the United States. Alternatively, if deceased, their parents did not have any ownership interest at the time of death in a home in the United States.

The individual has at any time been placed in foster care or institutional care, which refers to a type of out-of-home residential care for large groups of children by non-related caregivers.

Understanding these criteria is crucial for determining eligibility for the Shared Appreciation Loan program.

Shared Appreciation is a unique aspect of the Dream for All program, and it’s essential to understand how it works.

Here are a couple of examples:

Example 1: Borrower is a moderate-income homebuyer

• 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 value of the home.

• 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 value of the home.

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 value of the home.

Get Pre-Approved ASAP!

With the reservation system opening from April 3rd to April 29th, 2024, it’s crucial to get pre-approved as soon as possible. Don’t miss out on this fantastic opportunity to make your dream of homeownership a reality with the CalHFA Dream for All program!

 If you have any questions or need further clarification, please don’t hesitate to reach out to one of our knowledgeable loan officers for assistance.