Dream For All down payment program opens next month

The Dream For All Shared Appreciation Loan is a down payment assistance program for first-time homebuyers to be used in conjunction for down payment and/or closing costs. (We recommend to use it all towards down payment so that the borrower can avoid paying for mortgage insurance.)

How it works:

  • Homebuyers receive a shared appreciation loan to help them reach a down payment of up to 20% of their home’s purchase price.

  • The homeowner pays back the original loan amount plus 20% of any appreciation in the value of the home.

  • The program drawing is set to open April 3 and close April 29 of 2024.

Borrower requirements:

  • Be a first-time generational home buyer. A first-generation homebuyer is defined as 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)

  • Occupy the property as a primary residence

  • 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.

Property Requirements:

  • Be a single-family, one-unit residence (guest houses, granny units, and in-law quarters may be eligible)

  • Manufactured housing is permitted

  • Condominiums must meet the guidelines of the first mortgage

Benefits:

  • Comparatively lower interest rate than another assistance program

  • No private mortgage insurance (PMI) means lower monthly payments (if 20% is used towards down payment).

  • Lower monthly payment due to a lower loan amount

  • Increased buying power

  • The homeowner doesn’t repay the loan until they sell, refinance for a second time, or transfer the property. The repayment will be the initial 20% down lent to buy the home and 20% of the shared equity that was made during the home ownership

For questions or more information, contact Chris Aziz at (562) 378-6781 or Chris.Aziz@CCM.com

NewsStaff Report