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California’s Shared Growth Loan program, which provides down payments for first-time homebuyers, is so popular that applicants will be selected through a lottery this year.
When it launched last year, the California Housing Finance Agency (CalHFA) everyone’s dream The Shared Value Added Loan Program has consumed the entire $300 million originally earmarked for the program in less than two weeks.
California lawmakers have allocated an additional $220 million to the program in the 2023-24 state budget, and this week CalHFA announced a new process for early application for loans.
CalHFA created a “pre-enrollment portal” to give borrowers more time to apply and ensure equitable distribution of Dreams for All (DFA) loans across nine geographic regions.
The pre-registration portal will open on Wednesday, April 3, 2024, and CalHFA will be accepting applications until 5:00 pm on Monday, April 29, 2024.Potential home buyers are advised to contact California Federal Housing Administration (CalFHA) approved lender Get pre-approval for the program before applying.
in a Lender Announcement March 4The agency said it “expects demand for Dream For All Phase 2 to exceed available funds and will use a random selection process to issue DFA loan certificates.”
Successful applicants will receive a coupon giving them 90 days to purchase the home, enter into a purchase contract, and have the loan reserved by the lender through CalHFA’s Mortgage Access System (MAS).
California lawmakers passed it in 2021 AB 140the Dream for All program is a revolving loan program that is expected to grow over time and become self-sustaining using private investment.
The Dream For All Shared Growth Loan is a second mortgage that provides a down payment of up to $150,000 that homebuyers do not have to repay until they refinance or sell the home. Instead of paying interest on the second mortgage, the borrower pays back the original balance plus a portion of the increase in the home’s value.
To qualify, home buyers must meet maximum income limit Prices in the counties where they shop range from $132,000 in many rural counties to well over $200,000 in the Bay Area’s wealthier urban counties.
Everyone on the loan application must be a first-time homebuyer, and at least one applicant must also be a first-generation homebuyer – meaning they cannot have held an ownership interest in the home within the past 7 years and their parents have not Homeowner.
(For more program guidelines and eligibility requirements, see Dream Shared Appreciation Loan Program Brochure for All).
How to Apply for the CalHFA Dream For All Program
To ensure the program reaches residents across the state, funds will be allocated to nine regions based on the number of households in each region, with vouchers issued based on available funds in each region.
Los Angeles, Orange and San Diego counties are considered their own regions due to their large populations, while the 25 rural counties are classified as one region.
The nine regions are:
- Bay Area: Alameda County, Contra Costa County, Marin County, Napa County, San Francisco County, San Mateo County, Santa Clara County, Solano County and Sonoma County
- capital: El Dorado, Placer, Sacramento and Yolo counties
- Central Coast: Monterey, San Benedict, St. Louis, Santa Barbara, Santa Cruz and Ventura counties
- Central Valley: Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus and Tulare Counties
- Inland Empire: Imperial, Riverside and San Bernardino Counties
- Angels: Los Angeles County
- Orange County: orange county
- Rural places: Alpine, Amador, Butte, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Inyo, Lake, Lassen, Mariposa, Mendocino, Modoc, Mono, Nevada, Plumas, Shasta, Sierra, Siskiyou, Sutter, Tehama, Trinity, Tuolumne and Yuba county
- San Diego: san diego county
Homebuyers in any state can find programs offering down payment assistance using services like Down Payment Resource, which provides information about programs and eligibility requirements through sites like Zillow and Redfin and through integrations with multiple listing services (MLS), loans Persons and Agents.
Mortgage giants Fannie Mae and Freddie Mac are helping very low-income borrowers qualify for loans this spring by offering $2,500 in credit that can be used toward down payments, closing costs , escrow or mortgage insurance premiums.
Freddie Mac offers credit to qualified home buyers home possible Mortgages that allow buyers to put down as little as 3% with HFA Advantage mortgages offered by Housing Finance Agency (HFA).
Freddie Mac said in a statement that the offer applies to mortgages with settlement dates from March 1, 2024 to February 28, 2025. Lender Announcement.
Fannie Mae credit is available at Home Mortgage — Fannie Mae 3% down payment loan — similar time frame.
Lenders such as Rocket Mortgage, United Wholesale Mortgage and Zillow are offering grants that allow buyers to get a HomeReady or Homepossible loan with just 1% down. Rocket also covers the cost of PMI, making the deal even sweeter.
LoanDepot offers second mortgages to assist potential homebuyers who are unable to make the 3.5% minimum down payment required to qualify for an FHA purchase mortgage.
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