California’s Dream for All program reopens, offering shared appreciation loans to first-time homebuyers, aiming to make homeownership more accessible amid rising housing costs.
Good news for aspiring first-time homebuyers in California! The California Housing Finance Agency (CalHFA) is once again opening its doors to the California Dream for All shared appreciation loan program, designed to assist qualifying buyers with down payment and closing costs on home mortgages. Enrollment for the program will begin on February 24 and conclude on March 16, 2026.
As housing costs have surged to unaffordable levels in recent years, homeownership in California’s major cities has become an elusive dream for many who wish to live within a reasonable distance from their workplaces. The Dream for All program aims to provide immigrants and first-time homebuyers from underserved communities with an opportunity for stability and security through homeownership.
Eric Johnson, Information Officer for the Marketing and Communications Division at CalHFA, presented an overview of the program during an American Community Media (ACoM) briefing on January 29. “This is a program for first-generation homebuyers. One of the most important things for creating generational wealth is owning a home. Many families, across various races and ethnicities, have been essentially frozen out of homeownership in the United States and in California,” he stated. He highlighted that the African American community has been particularly affected, with the current homeownership rate lower than it was in 1968, the year the Fair Housing Act was enacted. “What we are trying to do with this program is make an incremental change,” he added.
So, how does the Dream for All program work, and who qualifies? The program is open to “first-generation homebuyers,” which includes individuals who meet one of the following criteria:
The borrower has not owned a home in the last seven years.
Parents do not currently own a home in the U.S. (or did not at the time of their death).
The borrower has been in the foster care system at any point in the past.
Additionally, any co-borrower on the loan must also be a first-time homebuyer, meaning they have not owned a home in the last three years.
The program offers loans of up to 20% of the home’s value for down payments. For example, if a home has a purchase price of $500,000, the Dream for All program can provide a loan of up to $100,000, allowing the borrower to make monthly mortgage payments on $400,000 instead of $500,000.
What exactly is a shared appreciation loan? Under the terms of this loan, borrowers receive up to 20% of the home’s value without making monthly payments on that portion. However, they must repay the original loan amount plus 20% of any profit (appreciation) when the home is sold or refinanced. It is important to note that the home must serve as the primary residence of the borrower.
To apply for the Dream for All lending program, potential buyers must work with one of the pre-approved CalHFA lenders and complete a pre-qualification process. They are also required to finish an online shared appreciation education course and obtain a certificate of completion.
Johnson emphasized the challenges many aspiring first-time homebuyers face, stating, “In California, there are thousands of people with good credit scores, steady jobs, and reliable incomes, but they haven’t been able to save enough for a down payment. That can be a significant hurdle.”
One of the primary challenges for many low-income, underserved aspiring first-generation homebuyers is the lack of funds for a down payment. Shonta Clark, a CalHFA program educator and lender, home counselor, and broker with New American Funding in Southern California, underscored the importance of down payment assistance. “If we can pay rent, why can’t we own a home? People don’t have the large down payment required. CalHFA has made that possible. I want to ensure that people understand and get excited about homeownership. There are homes and condos available for the low-income market,” she stated.
Education is key to overcoming these challenges. Imelda Manso, broker and owner of Premier One Realtors, which serves a primarily Latino market in Southern California, shared her experiences as an immigrant child who witnessed her family’s struggles with housing. “The Latino community is a demographic that continues to be underserved. In California, Latinos make up a little over 55% of the total Latino population in the U.S. They are also the youngest demographic, with an average age of 31,” she noted.
Manso emphasized the importance of educating both the Latino community and real estate practitioners about homeownership. She recounted the story of the Artiaga Sanchez family, who have been in the U.S. for 30 years. “I held their hand for about four and a half years, preparing them for buying a house, showing them how to build credit, pay down their debt, and save money for the down payment,” she explained.
Language barriers also pose significant challenges for many communities. Willie Lee, Home Ownership Program Director at the Shalom Center in Los Angeles, discussed the difficulties faced by the Korean community. “Homeownership for the Korean community represents stability, security, and the opportunity to build generational wealth. Yet, despite a strong work ethic and financial responsibility, many families remain locked out of the housing market,” he said. He noted that understanding the U.S. mortgage system, including concepts like credit scores and shared appreciation loans, can be overwhelming for first-generation Asian buyers, even those who speak conversational English.
Clark recommended that potential buyers seek counseling for homeownership from reliable agencies, such as lending firms, brokers, or community service organizations. “To start with, visit the HUD website and look up HUD-approved organizations. To increase home buying in the Asian community, programs must be accessible and trusted,” she advised.
Lee added, “Increasing homeownership requires more than a single solution. Families need down payment assistance, education and counseling, language access, trusted guidance, and awareness of programs like CalHFA’s Dream For All. When these elements come together, homeownership becomes achievable and sustainable.”
For more information about the California Dream for All program, interested individuals can visit the CalHFA website or contact a pre-approved lender.
According to India Currents.