California Dream For All Downpayment Assistance Shared Appreciation Loan - administered through the California Housing Finance Agency (CalHFA)

The "California Dream For All" Downpayment Assistance Shared Appreciation Loan was released this week via the California Housing Finance Agency (CalHFA) to a lot of excitement and fanfare. Candidly, this is a super unique state-funded program and I think it may be the first of its kind in the US. Funded by a state budget allocation, California is going all in to help first time buyers afford homes. I should say that funding for this program is limited and will likely run out, so if this interests you DO NOT wait.

Buyers who qualify may receive up to 20% of the purchase price of the home (or appraised value, whichever is less) to use as downpayment or closing costs. The 20% is a "silent second" -- meaning you borrow the funds however payments on this second mortgage are deferred for the life of the first mortgage loan. If you were to refinance the loan or sell the home at a later time, the funds must be repaid and a 15% or 20% share of the home's appreciation must be paid as well. The share of the home's appreciation that is due at the time of sale or refinance depends on the income level of the borrower.

Borrower Requirements 

• Be a first-time homebuyer. (CalHFA defines this as someone who has not owned and occupied their own home in the last three years)
• Occupy the property as a primary residence; non-occupant co-borrowers are not allowed. 
• CalHFA borrowers must complete two levels of homebuyer education and homebuyer counseling and obtain a certificate of completion through an eligible homebuyer counseling organization. 
• Meet CalHFA income limits for this program. (In Sacramento County, Placer County, and El Dorado County, the income limit is currently $202,000. In Yolo County, the limit is currently $211,000)

Property Requirements

• Be a single-family, one-unit residence, including approved condominium/PUDs 
• Guest houses, granny units and in-law quarters may be eligible 
• Manufactured housing is permitted 
• Condominiums must meet the guidelines of the first mortgage

There may be other requirements as well. To apply, since CalHFA is not a direct lender, their programs are offered through private loan officers who have been approved & trained by CalHFA. I know and have worked with several lenders who are approved to provide this program -- feel free to reach out to me at erin@erinstumpf.com or 916-342-1372 and I can connect you with one, or you can search CalHFA's lender directory here.

CalHFA offers NUMEROUS homebuyer downpayment and closing costs assistance programs, so they have a variety of programs if this one is not the best one for you. 

Once you are pre-approved for your purchase, we can start the fun part -- shopping for your home.