California first-time home buyers qualify for $150K in down payment assistance – but there’s a catch

First-time homebuyers in California have just 20 days starting tomorrow to lock in up to $150,000 in down payment assistance through a revamped state program aimed at reducing the crippling cost of buying in the Golden State.

The state’s Dream For All Shared Appreciation Loan (DFA) program is open for a limited window of 20 days, which will run from February 24 to March 16.

The program, funded by the California Housing Finance Agency (CalHFA), offers eligible first-time buyers up to 20% of the home’s purchase price or up to $150,000 – whichever is less – to cover down payments or closing costs.

“The California Dream For All program has helped thousands of Californians buy their first home,” Tony Sertich, executive director of CalHFA, told Mortgage Reports. “As these homeowners begin to repay their loans, funds are reinvested in the system to create a cycle that will continue far into the future, planting the seeds of productive wealth to help keep the California dream alive.”

In more expensive coastal markets like San Francisco and Los Angeles, where median home prices are often more than $1 million, that can mean a full $150,000 in down payments.

On a $750,000 home, for example, 20% equals $150,000 – meaning the ideal buyer could put down 20% with little to no savings for the down payment itself.

Unlike a regular government grant, the aid is structured as a shared gratitude loan. Borrowers repay the original loan amount when they sell or refinance the home — plus 15% to 20% of the home’s equity. Those returns are then put back into the program to help future consumers.

The program works on a lottery system. Interested buyers must first register for a voucher, and a random drawing will determine who receives it.

It is not first come, first served.

Here’s who is eligible

• At least one borrower must be a first generation home buyer
• All borrowers must be first time home buyers
• At least one borrower must be a current resident of California
• Household income must be domestic CalHFA income limits in the area where the home is purchased
• The buyer must get a Loan Approval Letter Before DFA before registering

Prospective buyers who meet the eligibility criteria will need to contact a CalHFA-approved lender that offers the Dream For All program to obtain a pre-approval letter — a required step before registering for the voucher drawing. Applicants must also complete a free, one-hour online course that explains how shared appreciation works and how it affects long-term pay.

Then, after submitting their application through the online portal with all the required documents, consumers are one step closer to being randomly selected in the voucher drawing.

Documents you will need easily to use

• California Dream For All (DFA) Borrower’s Prior Approval Letter
• A government-issued ID (passport, driver’s license, state ID, military ID, permanent resident card, visa or employment authorization)
• Foster care documents (if applicable)
• Information of both parents of the nominated first-generation borrower, including:
  • Full name
  • Birthday
  • Date of death (if applicable)
  • Current address
  • Proof of parental relationship (birth certificate or adoption papers)

The state says the goal is to create a sustainable financing cycle — helping one generation of Californians buy homes while reinvesting payments to support the next.

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