CA Dream For All shared appreciation home loan provides up to 20% down payment assistance

The HD Post
Photo byCalifornia Housing Finance Agency

STATEWIDE – The California Housing Finance Agency (CalHFA), announced March 26, that the California Dream For All (DFA) loan information is now posted on their website. The first-time homebuyers program provides up to 20% down payment assistance in return for a share of the appreciation in the home’s value.

The state plans to provide $300 million in payments to help 2,300 low to moderate income first-time buyers. 

The DFA Appreciation Loan is to be used in conjunction with the DFA Conventional first mortgage for down payment and closing costs. Upon 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.
Photo byCalifornia Housing Finance Agency

How the loan works

CALHFA provides examples of how the program works. 

A low income borrower who purchases a home for $500,000 would receive $100,000 for the downpayment and closing costs. After 5 years of appreciation, CalHFA estimates the new home value at $640,000. If the borrower decides to sell, they would owe the $100,000 and 15% of the appreciation – $121,000 total. Their homeowner equity would amount to $149,000.

In the same scenario, a moderate income borrower would owe $100,000 and 20% of the appreciation, in this case, $128,000 total. The home equity would amount to $142,000.
Photo byCalifornia Housing Finance Agency

Other details

Repayment of the DFA principal and any share of the appreciation on the Shared Appreciation Loan is due and payable at the earliest of the following events:

  • Transfer of title 
  • Sale of the property 
  • Payoff of the first loan 
  • Payoff of the subordinate loan principal balance 
  • Refinance of the first loan – see program handbook for details 
  • The formal filing and recording of a Notice of Default (unless rescinded)

RELATED: WISH grant provides first time homebuyers up to $22,000 for downpayment

There is a cap on the amount of appreciation owed. The most a borrower will ever repay is 2.5 times the original loan amount. If the appreciation of the property is zero or less, no additional monies would be due.

For more information about the California Dream For All Shared Appreciation Loan visit

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