The California Dream for All Shared Appreciation loan program is reopening on April 3, offering qualifying homebuyers up to 20 percent off their down payment fees. Last year, the program ran out of its $300 million budget in just 11 days, leaving many potential buyers without assistance. This year, applicants can enter a lottery system to qualify for a grant of up to $150,000 on a down payment. Qualifying homeowners must be first-time buyers, planning to live in the purchased home, meet income requirements, and be a first-generation homebuyer.
Last year, the California Dream For All program helped 2,182 homebuyers, with 55 percent from communities of color. However, there are stipulations to the program, such as sharing a percentage of profits if the house is sold. This requirement could leave some homeowners responsible for repaying the initial 20 percent grant if their homes don’t appreciate in value. The program aims to provide assistance to those who may not qualify for other forms of help due to various circumstances. Despite the stipulations, many feel that the program has the potential to be a life-changing opportunity for those who are struggling to afford homeownership in today’s housing market, where the median home sale price in California is $785,600.
Sammy Lyon, a Los Angeles-based broker at Dow Capital, highlighted the frustrations experienced by potential buyers who missed out on the program’s funding last year. Many buyers were close to receiving assistance but missed out due to the first-come, first-serve nature of the program. Lyon noted that some potential buyers who earned the grant didn’t necessarily need the money, while others who could benefit from the assistance were disqualified due to specific requirements, such as being a first-generation homebuyer. Lyon believes the lottery system this year will promote fairness in awarding the funds to deserving applicants.
The California Dream for All program not only provides financial assistance but also opens up the possibility of homeownership to many individuals who may have previously thought it was out of reach. Lyon emphasized that owning a home in an expensive city like Los Angeles can offer stability and long-term security for families, especially in gentrified neighborhoods where rents are rising rapidly. Homeownership can also create generational wealth for families, making it a valuable trade-off for those who qualify for the shared appreciation loan program. Despite some limitations and challenges, the program presents a valuable opportunity for those seeking to own their first home in California’s competitive housing market.
