CalHFA Dream For All

4.7.23 UPDATE

As many of you have heard, CalHFA announced yesterday that they were putting a PAUSE on the Dream for All program. I also heard that as of Wednesday $119m of the $300m funds have been utilized so there are still funds available. We talked to CalHFA last week and they expected the program to last at least 4 months and it has been two weeks. CalHFA was not expecting it to be so popular and go as quickly as it has.

We heard counseling turn times are at three weeks, CalHFA announced today they are adding a dozen more counselors to expedite the counseling process and prioritizing by close of escrow. We have talked to CalHFA, our lock desk and other top producing loan officers and we all feel that the pause is not yet due to funds been all used but more a way to slow down the volume.

The guidelines are so broad and many clients that never would have considered using this product now were jumping on board with getting 20% down payment, even if its not needed.

Sara Hanson Blanton & Jim Porter
Solano Mortgage
(707)449-4777

CalHFA Dream For All

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.

Program Eligibility

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, so we’ve put together a few examples for you.

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.

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.

Learn More

Are you interested in the CalHFA Dream For All program? Get in contact with Solano Mortgage today to learn more! Give us a call or send us an email or fill out a contact form.