An exciting loan program will become available to certain California home buyers in April 2024, and The Blue Waters Group is positioned to provide this great option to you! Please read below for an overview of the program, and reach out to us to determine if you may qualify for the program.
The California Dream For All Program is a shared appreciation loan offered by the California Housing Finance Agency (CalHFA) that can offer a first-generation home buyer a Zero Down Payment loan option. A traditional, 30-yr fixed loan is obtained for 80% of the home price combined with a 20% 2nd mortgage to replace the need for a down payment. This 2nd mortgage does not have any monthly payment, but instead is repaid when the home is refinanced or sold. The repayment amount will be the original amount of the 2nd loan balance plus a portion (typically 20%) of the appreciation earned by the home.
There is $220,000,000 in funding available for this program, meaning it will only be available to approximately 2,000 CA home buyers. As such, a “lottery” system is being implemented to determine who is offered this program. The application window will be open from April 3-29, and there is no incentive to apply early in the time period. Let us help you in the coming weeks to better understand this program, get pre-approved, and submit your application during the April lottery window.
Here is an overview video offered by CalHFA:
Below is an example of how the appreciation payback is calculated
