First-Generation Homebuyers: California Will Assist With Down Payments

SACRAMENTO – In California, 1,700 first-generation homebuyers have been conditionally approved for the Dream For All Shared Appreciation Loan program. The program provides potential homebuyers with vouchers offering up to 20% of a home’s value for down payment and closing cost assistance.

Since 2023, California’s Dream For All Program has helped thousands of Californians who were previously unable to attain homeownership. Nearly 2,200 families across the state have been able to purchase their first home through the first round of financing. Now, 1,700 more low- to moderate-income families will be offered the same opportunity.

The second round of Dream For All has focused on first-generation homebuyers – those whose parents did not own a home, and therefore did not have the opportunity to experience the social and economic benefits that homeownership provides, such as generational wealth-building.

Due to high demand, the California Housing Finance Agency or CalHFA used a random selection process to ensure all 18,000 applicants had an equal chance at receiving funding from the $255 million available from the second round of financing. A third-party audit was performed to certify that voucher recipients met key program requirements.

CalHFA will allocate funds across nine regions throughout the state: the Capital Region, Central Coast, Central Valley, Inland Empire, Los Angeles, Orange County, San Diego, San Francisco Bay Area, and rural areas.

Voucher recipients now have 90 days to find a home using Dream For All down payment assistance. When 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.

Details: here.