Will the dream of homeownership be reignited for first-time buyers in California? If the new state budget is any indication, the answer may just be a resounding “yes”!
The newly passed 2023-24 CA budget provides another $200 million for the shared appreciation loan program dubbed the “California Dream For All” program. The program provide first-time homebuyers with financial assistance equal to 20 percent of a home’s purchase price, with the funds being used for a downpayment and closing costs.
The program initially launched this past Spring with $300 million in funding available. Much to many surprise, all funds were reserved in less than two weeks. Now, the California Housing Finance Agency (CalHFA) is promising an update this Fall on reopening applications.
“CalHFA will continue working with partners in state government and stakeholders to calibrate the program, which may include changes to the program processes, guidelines, and systems,” the agency said in a statement.
Once a “Dream For All” homebuyer sells their home in the future, they are 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.