By- Nicole Donn, U.S. Financial Mortgage
The topic this month is more about the CalHFA California Dream For All Loan that we discussed last month. You may remember this loan from last year where a little over 2,000 families became homeowners for the first time with the help of the state of California through a shared appreciation program. It was first come, first served and you had to have a property in contract. The funds were gone in less than 10 days.
The guidelines for eligibility have changed along with the way the program will be administered. The down payment assistance will be up to 20% of the sales price or $150,000, whichever is lower.
- The homebuyer must register for a voucher. A randomized drawing will select registrants who will receive the voucher. This will not be first come, first served; it will be a random drawing occurring once the portal closes. The portal will be opening April 3rd, and we will be slammed with getting people their preapproval certificates.
One borrower must be a first-generation homebuyer. All borrowers must be first-time homebuyers.
Income must meet CalHFA Income Limits for the county you are purchasing in.
Next Steps
- Call 510-758-3035 or email ndonn@gemcorp.com to get preapproved for the California Dream for All Loan
- Work with your loan officer to determine what you need to do to secure a California Dream For All (DFA) Lender Pre-Approval Letter. You’ll need this letter in order to register for a DFA voucher in April.
- Take the 1-hour California Dream For All education course which covers what shared appreciation is and how it affects your mortgage repayment. This course is delivered online and is free. Visit calhfadreamforall.com to get signed up and learn about shared appreciation now.
Shared Appreciation
Shared Appreciation is a little more complex than a typical mortgage loan, so we’ve put together a few examples for you.
This loan is not for everyone, but for the lucky few, it offers an excellent opportunity to experience homeownership for yourself! For those who are not selected or who decide the program is not for them, we can present a variety of other options. So if you or anyone you know does not yet own their own home, please have them contact your local lender – US Financial Mortgage Lending at 510-758-3035 or email me at ndonn@gemcorp.com.