First-time homebuyers in California, particularly those who are the first in their families to own property, are about to get another opportunity to receive significant financial aid. The California Housing Finance Agency (CalHFA) is set to reopen applications for its "Dream For All Shared Appreciation Loan program." Starting Feb. 24, eligible buyers can apply for up to 20% of a home’s purchase price in down payment assistance, as reported by CBS Sacramento. The application window closes on March 16.
Interest in the program has historically outweighed available resources, prompting a lottery-style process to select applicants. CalHFA anticipates having between $150 million and $200 million on hand for the 2026 year, with a directive from Gov. Gavin Newsom ensuring at least 10% of the funding is allocated to buyers living in Qualified Census Tracts, according to a statement obtained by FOX40.
While the down payment assistance offers a substantial benefit by potentially lowering monthly mortgage costs, it comes with a catch: once the home is eventually sold, the homeowner must repay the assistance to the state, "along with a share of the home's increased value," a broker with the DeRosa Real Estate Team, Jake DaRosa, told CBS Sacramento. This design aims to perpetuate the funding cycle for future generations.
CalHFA stipulates that applicants must collaborate with a CalHFA-approved lender and secure a pre-approval letter before they can throw their hat into the ring. After the closure of the application window, applications will be audited and reviewed, with buyers receiving conditional approval getting a 90-day period to find a home, as explained by CalHFA officials. While in a statement obtained by FOX40, a youth program manager in Grass Valley, Craig Terry said, "I didn’t think there was any way we could afford a house, especially in this area."
The 2025–26 state budget has carved out $300 million specifically for the Dream For All program, which is projected to support approximately 2,000 households, including those buyers already on the program’s waitlist. The income limits for eligibility vary by county, making the program accessible to a diverse range of Californians. As properties facilitated through the program are resold, the state recoups the initial down payment assistance as well as a portion of property appreciation, allowing those funds to benefit new applicants, detailed by an official report from California Forward for the California State Treasurer’s Office.
