California Dream For All Shared Appreciation Loan
All information from calfa.ca.gov :
What is the California Dream For All Shared Appreciation Loan?
The Dream For All Shared Appreciation Loan is a down payment assistance program for first-time homebuyers to be used in conjunction with the Dream For All Conventional first mortgage for down payment and/or closing costs.
Upon sale or transfer of the home, the homebuyer repays the original down payment loan, plus a share of the appreciation in the value of the home.
What are the Program Requirements?
Review the guidelines below for both Borrower and Property Requirements to determine if you may be eligible to apply for the Dream For All Shared Appreciation Loan Program.
Borrower Requirements
Be a first-time homebuyer. See the definition of a first-time homebuyer.
Occupy the property as a primary residence; non-occupant co-borrowers are not allowed.
CalHFA borrowers must complete two levels of homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
Meet CalHFA income limits for this program.
*In the case of conflicting guidelines, the lender must follow the more restrictive.
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*
*In the case of conflicting guidelines, the lender must follow the more restrictive.
Shared Appreciation
Shared Appreciation is a little more complex than a typical mortgage loan, here are a few examples for you.
Example #1:
Borrower is a CalHFA 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.
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
Interest Rate
What is the interest rate?
Interest rates will vary depending on your financial circumstances, lender fees, and other factors. Interest rates can also change daily. We recommend that you check with a CalHFA-approved loan officer to receive an accurate rate quote for this program.
CalHFA does not lend money directly to consumers. CalHFA works through and uses approved lenders to qualify consumers and to make all mortgage loans. The fees you pay could be different depending on the lender and the program. View sample Annual Percentage Rates (APRs) here.
Homebuyer Education Requirement
CalHFA firmly believes that homebuyer education and counseling is critical to the success and happiness of a homeowner, and requires homebuyer education and counseling for first-time homebuyers using a CalHFA program.
Who has to take this Homebuyer Education and Counseling course?
Only one occupying first-time borrower on each loan transaction.
How do I take this education and counseling course?
ONLINE: eHome's eight-hour Homebuyer Education and Counseling course is the only online course accepted by CalHFA. (fee: $99) Other online courses like Frameworks and HomeView are not acceptable because they do not provide a one-hour, 1-on-1 counseling follow-up session.
IN-PERSON or VIRTUAL: Live Homebuyer Education and Counseling in-person or virtually though NeighborWorks America or any HUD-Approved Housing Counseling Agency
(fee: varies by agency)
How do I take the additional California Dream For All education?
ONLINE: This education is free and online only. Visit calhfadreamforall.com to get signed up and take the course.
How To Apply?
How do I apply for this loan program?
Since CalHFA is not a direct lender, our mortgage products are offered through private loan officers who have been approved & trained by our Agency. These loan officers can help you find out more about CalHFA’s programs and guide you through the home buying process.
Visit the Find a Loan Officer tab, to contact a loan officer in your area.
What documents should I have ready when contacting a loan officer?
When initially contacting a loan officer, you may want to have this list of documents and information available to help answer questions that they will ask you:
Pay stubs
Bank statements
Employment history
Previous tax returns
For more information click here:
