CalHFA Dream For All Program - Low Income
Best For: First Time Homebuyers, Zero Down
The CalHFA Dream For All Program for Low Incomes provides up to 20% in assistance as a deferred payment mortgage that is repaid with appreciation.
This loan program is not available in USA
Program Description
CalHFA now offers the Dream For All Shared Appreciation Loan Program for Low Incomes, which provides up to 20% of the price or value in down payment and closing cost assistance. The assistance comes in the form of a deferred second loan that is paid at the time of sale, payoff, transfer of title, refinance or default of the property, and the borrower must pay the original loan amount and shared appreciation (if any) as determined by the program.
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CalHFA Dream For All Program - Low Income
Min. Credit Score
660
Min. Down Payment
0%
Max Loan Amount
$1,089,300
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Program Benefits
Benefit type: Up to 20.00% of 1st Loan Amount
Type: Bond Deferred Payment Program - Repayable
Assistance is a 30-year deferred payment, shared appreciation silent second mortgage. For borrowers with incomes at or below 80% AMI, the appreciation share is 0.75:1 (i.e. 15% of appreciation), and is capped at 2.5 the original principal amount.
First Mortgage Program Option
This program can be used in tandem with the following first mortgage programs in order to help fulfill down payment requirements, pay closing costs, or provide other benefits. Learn all about how grants, bonds & 2nd mortgages work here.
Pros & Cons
- Payments on assistance deferred for as long as you reside in the home
- In most situations, Private Mortgage Insurance (PMI) is not required
- No purchase price limits
- Available in all of California
- Also available for manufactured homes
- Lower credit score requirement (660) than the above 80% AMI program (680)
- Under 80% AMI (Area Median Income) restriction applies
- Only available for 1-unit primary residences
- Only available to first time homebuyers
Program Availability
CalHFA Dream For All Program - Low Incomes are available in 1 state.
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“This innovative mortgage option from CalHFA provides assistance that can help lower your out of pocket expenses and your monthly payment, boost your buying power, and avoid mortgage insurance."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
50.00%
Purchase Price Limit
No Limits
Income Limit
$51,120 - $133,280
Annual Qualifying Income
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- Up to 20% in down payment and/or closing cost assistance
- Assistance is a deferred second loan that is paid back with appreciation
- Available to first time homebuyers making less than or equal to 80% AMI
Additional Conditions
- Must be combined with the Dream For All Conventional First Mortgage
- Only available for owner-occupied properties—the borrower(s) must live in the home as a primary residence
- High balance loan amounts are allowed, but are subject to an additional fee (a percentage of the loan amount)
- May be combined with other assistance programs so long as they are not CalHFA programs
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class is required for this loan program.
Class Name: eHome's 8-Hour Homebuyer Education or In-Person
CalHFA requires first time homebuyers using their program to complete homebuyer education and counseling. Only one borrower occupying each loan transaction needs to take the course. Additionally, at least one borrower must complete another education course administered by CalHFA specially for shared appreciation loans.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
No Mortgage Insurance
This program does not require Private Mortgage Insurance (PMI).
Type: CalHFA Servicer's Funding Fees
Fees include a servicer funding fee, tax service fee, and flood certificate fee.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2.5% 0.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
CalHFA MyHome Assistance Program
Best For: First Time Homebuyers, Zero Down
The CalHFA MyHome Assistance Program provides up to 3% in down payment assistance in the form of a deferred payment mortgage.
CalHFA MyHome Assistance Program - FHA
Best For: First Time Homebuyers, Zero Down
The CalHFA MyHome Assistance Program for FHA provides up to 3.5% in down payment assistance in the form of a deferred payment mortgage.
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* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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