First-time California homebuyers eligible for $150K in downpayment 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 revived state program aimed at easing the crushing cost of buying in the Golden State.

The state’s Dream For All Shared Appreciation Loan Program (DFA) is opening for a limited 20-day window, running from Feb. 24 through March 16.

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

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

In high-cost coastal markets like San Francisco and Los Angeles, where median home prices often top $1 million, that could mean the full $150,000 toward a down payment.

On a $750,000 home, for example, 20% equals $150,000 — meaning a qualifying buyer could potentially put down 20% with little to no money saved for the down payment itself.

Unlike a traditional grant, the assistance is structured as a shared appreciation loan. Borrowers repay the original loan amount when they sell or refinance the home — plus 15% to 20% of the home’s appreciation. Those returns are then recycled back into the program to help future buyers.

The program operates on a lottery system. Interested buyers must first register for a voucher, and a randomized drawing will determine who receives one.

It is not first-come, first-served.

Here’s who is eligible

• At least one borrower must be a first-generation homebuyer
• All borrowers must be first-time homebuyers
• At least one borrower must be a current California resident
• Household income must fall within CalHFA income limits for the county where the home is being purchased
• Buyer must obtain a DFA Lender Pre-Approval Letter before registering

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

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

Documents you’ll need handy to apply

• California Dream For All (DFA) Lender Pre-Approval Letter
• Government-issued ID (passport, driver’s license, state ID, military ID, permanent residence card, visa or employment authorization document)
• Foster care documentation (if applicable)
• Information for both parents of the designated first-generation borrower, including:
  • Full name
  • Date of birth
  • Date of death (if applicable)
  • Current address
  • Proof of parent relationship (birth certificate or adoption papers)

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

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