The Dream For All Shared Appreciation Loan: Your Ultimate Guide to Homeownership
Are you a first-time homebuyer looking for financial assistance to make homeownership a reality? Look no further! The Dream For All Shared Appreciation Loan program is here to help. In this ultimate guide, we’ll cover the program’s benefits, eligibility criteria, property requirements, and the application process. Let’s turn your homeownership dreams into reality!
Dream For All Shared Appreciation Loan: Benefits
The Dream For All Shared Appreciation Loan program provides first-time homebuyers with a down payment and closing cost assistance. It works in conjunction with the Dream For All Conventional first mortgage. Upon the sale or transfer of the home, the homebuyer repays the original down payment loan, plus a share of the appreciation in the value of the home.
Eligibility Criteria
To qualify for the Dream For All Shared Appreciation Loan program, borrowers must:
- Be a first-time homebuyer
- Occupy the property as a primary residence (non-occupant co-borrowers are not allowed)
- Complete two levels of homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization
- Meet CalHFA income limits for this program
Property Requirements
Eligible properties include:
- Single-family, one-unit residences, including approved condominiums/PUDs
- Guest houses, granny units, and in-law quarters
- Manufactured Housing
- Condominiums that meet the guidelines of the first mortgage
Shared Appreciation
Shared Appreciation is when you repay the down payment loan and a share of your home’s appreciation upon sale or transfer. Here are two examples:
Example 1: Moderate-income homebuyer
- Dream For All provides a 20% loan for the home purchase price
- Homeowner repays the loan plus 20% of home value appreciation
Example 2: Income less than or equal to 80% AMI
- Reduced program appreciation share (0.75:1)
- Dream For All provides a 20% loan for the home purchase price
- Homeowner repays the loan plus 15% of home value appreciation
Interest Rate
Interest rates for the Dream For All Shared Appreciation Loan program vary based on your financial situation, lender fees, and other factors. Speak with a CalHFA-approved loan officer for an accurate rate quote.
Homebuyer Education
Homebuyer education and counseling are required for first-time homebuyers using a CalHFA program. You can complete this online with eHome’s course or through in-person or virtual sessions with NeighborWorks America or any HUD-Approved Housing Counseling Agency. Additionally, you’ll need to take the free California Dream For All education course online.
How to Apply
To apply for the Dream For All Shared Appreciation Loan program, contact a CalHFA-approved loan officer in your area. They’ll guide you through the home-buying process. Be prepared with documents like pay stubs, bank statements, employment history, and tax returns.
Conclusion
The Dream For All Shared Appreciation Loan program is an excellent opportunity for first-time homebuyers to achieve their homeownership dreams. With its financial assistance, homebuyer education, and flexible property requirements, this program can help make your dream a reality. If you meet the eligibility criteria and are interested in the program, reach out to a CalHFA-approved loan officer and begin your journey to homeownership today!