California offering up to $150K in down payment assistance

California will give out $250 million in down payment assistance this spring as it relaunches its widely popular program aimed at helping first-time homebuyers.

Last year, the Dream for All program started with $300 million and it all ran out in just 11 days.

This year, the California Housing Finance Agency made changes aimed at reaching a more diverse group of borrowers across the state. This time, instead of the program launching on a first-come, first-serve basis, there will be a lottery.

"The next round of the California Dream For All shared appreciation loan program will be focused on first-generation homebuyers and use a lottery system to ensure an equitable distribution of loans," read a statement from the department. "Interested homebuyers can get started working with an approved loan officer or approved lender now in preparation to submit applications in April for the lottery."

The state will give up to 20% of the purchase price, or $150,000, whichever is lower. The loan will then be paid back, plus a share of the home's appreciation whenever it sells in the future.

Officials estimate is between 1,700 and 2,000 lottery winners will receive vouchers and will then have 60 days to spend on a home.

Chris Aziz, a Downey-based loan officer who assists with Dream For All applications, urged interested homebuyers to apply quickly.

“Get pre-qualified as soon as possible because the program only lasted two weeks last time,” Aziz said. “You really need to be ready to buy something and submit all necessary documentation immediately to reserve funds.”

It’s unclear if the statel will allocate more funds after the $250 million is depleted. Even so, Aziz said there are other programs available to help with down payments, including CalHFA, Chenoa and FHA, which requires only a 3.5% down payment.

“Depending on the area you are looking or living in, there are grants available to promote homeownership,” Aziz said.

For more information about the Dream For All program, call Aziz at (562) 846-6986.