The CalHFA Dream For All Shared Appreciation Loan Program (DFA) will begin its second phase in April of 2024. This program offers First time homebuyers up to 20% for a down payment or closing costs, not to exceed $150,000. 

What does shared appreciation mean? In the simplest terms, when you sell or refinance your home you then need to pay back the money you borrowed from the State of CA that was used towards the purchase plus 20% of any appreciation that the home has gained. Here is an example 

Buyer wants to purchase a home for $500,000 and borrows 20% through the DFA program. The buyer uses that 20% or $100,000 as their down payment and takes out a purchase loan for $400,000. It is now time to sell the home and the home has appreciated to $600,000. At the time of the sale the buyer now has to pay back the state of CA the original loan amount of $100,000 plus 20% of the $100,000 appreciation which is a total of $120,000. 

Just like last year when this program was released they anticipate that the applications will exceed the funds available. When this program was released Spring of 2023 it caused a surge of buyers to hit the market and the funds were exhausted within 10-12 days and only 2,182 people were able to secure and use the funds before they ran out. 

This year the guidelines have changed and so has the process. Some key changes are 

• At least 1 borrower must be a 1st Generation Homebuyer. This means that you have 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. It also means that your 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.

• You must be a First Time Homebuyer which means you have not owned and occupied your home in the last three years, and you have not lived in a home owned by a spouse in the past three years. 

• The income limit for Sacramento County residents has been lowered to $180,000. 

• The funds will be distributed via a lottery system, it is no longer first come first served until funds are gone. 

• Applicants must be pre-approved and complete an educational course and counseling to qualify for the DFA voucher. A $99 fee applies for the educational course. 

• If you are selected for the DFA voucher you will have 90 days to get into contract on a home and have your mortgage lender reserve the funds.

The pre-registration program portal will open on Wed April, 2024 at 8am and will accept applications until Mon April 29, 2024 at 5pm. If you intend to use this program you need to start working with a CALHFA approved lender now and have all of the requirements completed prior to applying for the program. 

Want to learn more? Check out the resource pages below. 

Click here for more information regarding the DFA program

Click here for more information on borrower eligibility requirements 

Click here to watch videos that walk you through the DFA program

Click here for income limits throughout the state of CA