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CalHFA has announced they will be doing a second round of their Dream For All Program that provides up to 20% down payment assistance for first-time homebuyers. However, last year the program ran out of money in only 11 days resulting in CalHFA making some key changes to the program this year. Here's what you need to know:
The income limits by county have changed, see the changes by county here.
Definition of a first time homebuyer has changed to mean the borrowers cannot have owned a home in the last 7 years (Previously was 3 years).
At least one borrower has to be a First-Generational Homebuyer.
Meaning "To the best of the homebuyer’s knowledge whose parents (biological or adoptive) do not have any present ownership interest in a home in the United States or if deceased whose parents did not have any ownership interest at the time of death in a home in the United States, or;
An individual who has at any time been placed in foster care or institutional care (type of out of home residential care for large groups of children by non-related caregivers)
Additional down payment is now capped at 5% (Previously was 10%).
Program will be given out in a lottery system instead of first come first serve.
Assistance is now capped at $150,000 or 20% of the purchase price, whichever is less.
Since the program has moved to a lottery system, the registration process has changed for the program as well. The process will now require getting a CalHFA pre-approval letter by applying with CalHFA approved lender such as myself. This letter will then be required to be uploaded to CalHFA in April to register for the lottery. CalHFA will reach out after registration to confirm qualifications for program before picking lottery winners in May. If chosen, borrowers will have a specific amount of time to get an accepted offer on a home (Number of days has yet to be released).
These changes reflect CalHFA's want to make sure this program falls into to the hands of people who need it most.
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