CA Homebuyers Could Get $150K From The State

CALIFORNIA — Starting Wednesday, qualifying California homebuyers can register for the chance to receive up to $150,000 in real estate loans from the state.

California has earmarked $220 million this year for the Dream For All Shared Appreciation Loan program and expects to distribute up to 2,000 vouchers to first-time buyers, according to state Sen. Toni Atkins, a Democrat representing District 39.

“This innovative program is designed to help Californians who might not otherwise have the opportunity to achieve the dream of homeownership,” the California Housing Finance Agency, which facilitates the program, said in an announcement earlier in the year.

The program provides up to 20 percent of down payment or closing costs not to exceed $150,000, according to the agency. For a household to qualify, all borrowers must be first-time buyers, at least one borrower must be a first-generation buyer and the household’s income must meet agency limits for the county where the purchase takes place.

When a recipient sells or transfers a home bought through the program, they must repay the loan as well as a share of the property’s appreciation in value.

Recipients will be determined using a lottery to allocate vouchers for different regions based on each area’s share of state households, according to Atkins.

Demand for the loans is expected to be high.

In 2023, the $300 million set aside for the program’s first phase was exhausted in 11 days, with 2,182 new homeowners — 55 percent of whom identified as people of color — receiving assistance.

Home prices in the state have continued to rise. In February, California’s median home price was $806,490, according to the California Association of Realtors, up 2.2 percent over January and 9.7 percent from February 2023.

Registration for the program will open 8 a.m. Wednesday and close 5 p.m. April 29. To register, visit www.calhfa.ca.gov/dream/ and talk with an approved lender.