Updated April 7:
As of today, the state announced that all funds for the California Dream For All Shared Appreciation Loan program have been reserved. Sign up for eNews for future California Dream For All Shared Appreciation Loan program updates.
The dreaded downpayment can haunt many a first-time homebuyer, but the state of California is trying to take some of the pressure off with the launch of a new assistance program.
Dubbed the “California Dream For All” program, the applications for which just became available, aims to provide first-time homebuyers with financial assistance equal to 20 percent of a home’s purchase price. Those funds can be used for a downpayment and closing costs.
So, what’s the fine print say? Once a program homebuyer sells their home in the future, they would be required to pay back the 20 percent assistance, plus 20 percent of the home’s appreciation. If the home sells without any growth in value, the seller would only pay back the original 20 percent loan.
Eligible parties must be first-time buyers, must be a sole signer and sole borrower and must meet income requirements set by the county where the home resides.
NBCLA notes that in Los Angeles County, borrowers must make under $180,000 per year. The range in California can be anywhere from $159,000-$300,000.
The program is estimated to support 2,300 homebuyers with $300 million allotted in financial support. For more information, click here.