California’s Dream For All Shared Appreciation loan program, designed to help make home-buying easier for prospective buyers in the Golden State, is already running out of money.
The program, which launched on March 27, was available to help first-time homebuyers with down payments.
The state has already fully allocated the estimated $300 million set aside for the program as of April 7, Eric Johnson, spokesperson for California Finance Housing Agency, told KTLA.
“Demand was unprecedented, and we have more than 2,500 families reserved and locked in to purchase their first home,” Johnson said.
To qualify for the program, households must have earned less than the CalHFA’s income limit, which vary by county and range from $159,000 to $300,000.
Those who took advantage of the program must repay the original down payment loan plus a portion of the home’s appreciated value if they sell or transfer the property.
Additional funding for the program would have to come from the state budget process in the legislature, Johnson says.
“CalHFA continues to provide other popular down payment and closing cost assistance programs that have helped more than 45,000 low- and moderate-income Californians achieve the dream of homeownership in the past five fiscal years. There is no cutoff date for that, and we recommend people contact one of our preferred loan officers,” Johnson said.
To receive program updates, people can sign up for CalHFA news on the agency’s website.
How the program worked
The popular home loan program was only open to select prospective home buyers in the Golden State. .
To be eligible for this program, Californians must:
- Be a first-time homebuyer meaning you haven’t owned your own home in the last three years.
- The property must be your primary residence; non-occupants are not allowed
- Complete two levels of homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
- Meet CalHFA income limits for the program
The loan program also restricts the type of properties residents can purchase. The property must:
- Be a single-family, one-unit residence, including approved condominium/PUDs
- Guest houses, granny units and in-law quarters may be eligible under the loan program
- Manufactured housing is permitted.
- Condominiums must meet the guidelines of the first mortgage.
To apply, prospective home buyers must have met with a CalHFA-approved home lender. Prospective home buyers can find their nearest loan officer online.
The average price of a home in California is $718,687, according to Zillow data, and in big metropolitan home areas, buying a home can cost even more. For example, in San Francisco, the median home price is over $1.2 million; in Los Angeles, the median home price is $891,820, according to Zillow.