California Dream For All Conventional Loan

Yes, the education requirement for this program is more extensive than standard loans. First, at least one occupying first-time homebuyer must complete the standard homebuyer education course (available online via eHome or in-person through NeighborWorks). In addition to that, at least one borrower must complete a specific CalHFA education course designed exclusively to explain the mechanics of Shared Appreciation loans. Both certificates must be completed before loan approval. This ensures borrowers fully understand the future repayment obligations regarding the home’s appreciation.

You can use the Dream For All loan to purchase a single-family one-unit residence, which includes approved condominiums and Planned Unit Developments (PUDs). Manufactured homes are also eligible if they meet specific Fannie Mae MH Advantage or Standard MH guidelines (must be double-wide or larger). However, 2-4 unit properties (duplexes, triplexes, etc.) are not eligible for this program. Additionally, the property must be located in California and must be occupied as your primary residence within 60 days of closing.

No, the Dream For All Shared Appreciation Loan cannot be combined with CalHFA’s standard MyHome Assistance Program or the Zero Interest Program (ZIP). The 20% assistance provided by Dream For All is intended to replace those other options. However, you are allowed to layer this program with non-CalHFA subordinate loans, such as “Community Seconds” provided by cities or counties, as long as those programs meet Fannie Mae guidelines and agree to sit in a subordinate lien position behind the Dream For All loan.

The minimum credit score requirements depend on your income level. For most borrowers, the minimum credit score is 680. However, if your income is less than or equal to the HomeReady 80% AMI limit, you may qualify with a score of 660. Regarding debt, the maximum Debt-to-Income (DTI) ratio is 50% if your credit score is 700 or higher. If your score is between 680 and 699, or if you are purchasing a manufactured home, the DTI is capped at 45%. Manual underwriting is not permitted.

Borrowers must meet strict county-specific income limits to qualify. As of June 2025, the annual income limit for counties such as Alameda and Contra Costa is $316,000, while the limit for Los Angeles County is 211,000∗∗.Otherexamplesinclude∗∗SanDiego(258,000), Sacramento (239,000)∗∗,and∗∗SantaClara(325,000). Lenders calculate income using Fannie Mae guidelines for credit qualifying purposes. Importantly, income not used to qualify for the loan (such as from a non-borrowing spouse) generally does not count toward these program limits, provided the lender does not use it for credit approval.

Unlike most other down payment assistance programs, Dream For All offers a unique one-time re-subordination benefit. This means that if interest rates drop in the future, you may be allowed to refinance your first mortgage into a limited cash-out refinance (to lower your rate or term) without having to immediately pay back the 20% assistance loan. The Shared Appreciation Loan would remain in the second lien position. However, this is allowed only one time; subsequent refinances or cash-out refinances would trigger full repayment of the principal and shared appreciation.

The program is not first-come, first-served. Instead, potential borrowers must apply for a Dream For All Voucher through a randomized drawing (lottery) system. To register for a voucher, you typically need a Pre-Approval Letter from an approved lender. If selected in the drawing, you will receive a voucher that grants you a specific timeframe (e.g., 90 days) to enter into a purchase contract. Without a voucher, your lender cannot lock the loan or reserve funds for you, even if you meet all other eligibility criteria.

The amount of appreciation you owe depends on your income relative to the Area Median Income (AMI). If your income is above 80% AMI, the share ratio is 1:1; for example, if you borrowed 20% of the home value, you repay the principal plus 20% of the appreciation. If your income is ≤ 80% AMI (Low Income), the share is reduced to 0.75:1 (you would pay 15% of the appreciation on a 20% loan). The total appreciation repayment is capped at 2.5 times the original principal amount, ensuring you retain equity if the market skyrockets.

To qualify for this program, at least one borrower must meet the strict definition of a First-Generation Homebuyer. This is defined as a homebuyer who has not held an ownership interest in a home in the United States within the last 7 years. Additionally, to the best of their knowledge, their parents (biological or adoptive) must not currently have any ownership interest in a home in the U.S., or if deceased, did not own a home at the time of their death. Former foster youth or individuals who were in institutional care also qualify under this definition.

The Dream For All Shared Appreciation Loan is a specialized down payment assistance program designed for first-generation homebuyers. It provides a loan for up to 20% of the home’s sales price or appraised value (capped at $150,000) to be used for down payment and closing costs. This is a deferred loan, meaning you do not make monthly payments on the assistance. Instead, upon selling, transferring, or refinancing the home, you repay the original loan amount plus a share of the home’s appreciation (increase in value). This program must be paired with the Dream For All Conventional first mortgage.