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.

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.

  • Be either a citizen or other National of the United States, or a “Qualified Alien” as defined at 8 U.S.C § 1641.

  • CalHFA borrowers must complete two levels of homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
    — Please refer to the CalHFA Conventional Loans Program Handbook for full details.

    — Additionally, Borrowers are required to complete CalHFA homebuyer education specifically for Shared Appreciation loans.

  • Meet CalHFA income limits for this program.

  • Meet credit, income, and loan requirements of CalHFA’s first mortgage loan program, the CalHFA-approved lender, CalHFA’s Master Servicer, Lakeview Loan Servicing, and the mortgage insurer, as applicable.

  • At least one borrower must:

    — A homebuyer who has not been on title, held an ownership interest or have been named on a mortgage to a home (on permanent foundation and owned land) in the United States in the last 7 years, and;

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

    — An individual who has at any time been placed in foster care or institutional care (type of out of home residential care for large groups of children by non-related caregivers)

  • Maximum Shared Appreciation Loan amount is $150,000 or $20% of the sales price or appraised value, whichever is less

  • Minimum Combined Loan-To-Value (CLTV) is 95.00%

  • 2-1, 1-1, and 1-0 temporary buydowns are permitted

Property Requirements

*In the case of conflicting guidelines, the lender must follow the more restrictive.

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?

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.

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