Dream For All loan program offers as much as $150,000 for first-generation buyers that meet income requirements. Funds are repaid when the home is sold or refinanced.
Buying a house in California is tough. Fewer than one of every five households can turn the dream into a reality.
The biggest challenge for many is the down payment.
But a state program could help almost 2,000 residents achieve the dream of homeownership and build generational wealth with a bit of luck and a little paperwork.
The Dream For All Shared Appreciation Loan program has already helped thousands of low- and moderate-income households in the state become first-time homeowners the past three years – and the next round will start accepting applications Tuesday, Feb. 24. The deadline to apply is March 16.
The program offers as much as 20% in down payment assistance — up to a maximum of $150,000 – for first-time homebuyers who meet county income requirements. The income limits are rather generous, from about $150,000 in rural counties to more than $300,000 in the Bay Area.
Under the program, at least one of the buyers must also be a first-generation homeowner, meaning their parents have not owned a home in the past several years.
A few weeks after the deadline, applications will be drawn through a random selection process, reviewed to ensure applicants meet eligibility requirements and then vouchers will be issued. Applicants on the wait list from the previous round are eligible for the latest round of Dream For All if they continue to meet the requirements.
Dream for All details
Californians interested in the program should check out the Dream For All page on the CalHFA website at https://www.calhfa.ca.gov/dream/index.htm#eligibility.
Applications are accepted between Feb. 24 and March 16, 2026.
Applicants must meet county-by-county income limits, available at https://www.calhfa.ca.gov/homeownership/limits/income/income-cadfa.pdf
Just some of the other criteria:
- Applicants must work with a CalHFA-approved lender
- At least one buyer must be a first-generation homeowner
- A credit score of at least 660
- Home shoppers will have 90 days to buy a home
Once applicants have been audited and approved for the program, they will have 90 days to shop for a home.
The $150 million to $200 million available for the latest round will be allocated to nine regions of the state – from metros like the Bay Area and Los Angeles to rural counties — giving residents an equal opportunity to be selected for the program.
About 1,500 to 2,000 households will be helped through the program.
‘PLANTING THE SEEDS OF GENERATIONAL WEALTH’
Dream For All helps Californians become homeowners and build generational wealth. Homeowners pay back the down payment plus 15%-20% of the appreciation when they sell or transfer the home or refinance the mortgage, generating future funds for the program.
“The California Dream For All program has already helped thousands of Californians buy their first home,” said CalHFA Executive Director Tony Sertich. The state agency oversees the program. “As these homeowners begin to repay their loans, the funds are reinvested into the program to create a cycle that will continue far into the future, planting the seeds of generational wealth to help keep the California dream alive.”
Dream For All helps hardworking Californians with the biggest challenge of buying a home – saving enough money for the down payment. Four of five renters say the down payment and closing costs are a “significant obstacle” to purchasing a home, according to a recent Bankrate survey.
Wait! What about the state budget crisis?
Great question. State lawmakers approved funding for the Dream For All program in the 2025-26 budget — so the effort does not impact the upcoming fiscal year.
“Homeownership is more than a place to live – it’s about stability, equity and building generational wealth,” said Tamara Suminski, President of the California Association of Realtors. “For too many Californians, that dream has been out of reach. The Dream For All program helps change that by offering down payment and closing cost assistance, giving first-time buyers a fair chance to own a home, build financial security, and create lasting opportunities for their families.”
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DREAM FOR ALL ADDRESSES ‘SYSTEMIC BARRIERS’ TO HOMEOWNERSHIP
Fewer than one of every five households can afford to buy the median-priced home in California, a dramatic decline from about one of every three a decade ago, according to the California Association of Realtors. The affordability rate is based on a 20% down payment, the maximum assistance available through Dream For All.
“CalHFA has emphasized both equity and reach in its Dream For All program, designing the program to reach households facing systemic barriers to ownership across California’s diverse regions,” said Carolina K. Reid, Faculty Research Advisor for the Terner Center for Housing Innovation, a research and policy center at the University of California, Berkeley.
Dream For All provides a large enough down payment to eliminate the need for mortgage insurance and helps lower mortgage payments, saving first-time homebuyers several hundred dollars to more than $1,000 every month. Homeowners also avoid rent increases and enjoy a locked-in mortgage payment.
14 YEARS AND COUNTING OF HOME PRICE GAINS
A house is often the largest asset for Californians and one of the most effective ways to build generational wealth, giving homeowners the financial ability to cover the cost of emergencies, help pay for higher education or even provide a down payment for their children’s first homes.
The average home-seller in California enjoyed a nifty profit during the fourth quarter, from a nation-leading $755,000 in San Jose to a still-respectable $132,500 in Bakersfield, according to ATTOM Data. The company’s report found the average seller in California owned their home for slightly more than a decade, which greatly helps boost profits.
Home prices have increased for 14 straight years, though some of the gains were rather small. So, homeowners and state officials can likely sleep well every night.
“I didn’t think there was any way we could afford a house, especially in this area,” said Craig Terry, a youth program manager in Grass Valley. Terry and his wife applied for Dream For All but were placed on a waiting list. A few months later, the couple were approved and bought a home in August 2024. “It was a waiting game. Then, it got very real, very quickly.”
