California Dream For All explained: How it works & who it's really for.
What is the California Dream For All program?
When clients ask me about California Dream For All, this is how I explain it.
Dream For All is adown payment assistance program run by the California Housing Finance Agency, also known as CalHFA.
It is designed for first-time buyers who can afford the monthly payment but are stuck trying to save a large down payment in California.
What matters most is understanding how the help gets paid back.
How does California Dream For All actually work?
Dream For All can provide up to 20 percent of the home price toward the down payment.
There are:
No monthly payments
No interest
No required repayment while you live in the home
Repayment happens only when you sell the home or refinance.
At that point, you repay:
The original assistance amount
Plus the same percentage of appreciation or depreciation
If the home goes up in value, California shares in that increase.
If the value goes down, California shares in the loss.
This is why I never describe this program as free money.
Is California Dream For All a grant or a loan?
It is neither.
The cleanest way to think about it is shared equity. You are trading part of your future appreciation for help buying now.
That trade can make sense, but only in the right situation.
Who is California Dream For All really for?
In practice, this program works best for buyers who:
Are first-time homebuyers
Plan to stay in the home long term
Need help clearing the down payment hurdle
Are comfortable sharing future equity
It is usually not a good fit if you plan to sell quickly, refinance soon, or want to keep 100 percent of future appreciation.
Why do buyers get confused about Dream For All?
Most confusion comes from:
Not understanding the equity payback
Assuming it works like a normal grant
Not comparing it to other state, county, or city programs
When I review this with buyers, we always compare it side by side with other options before deciding.
Is California Dream For All worth it?
For the right buyer, yes.
For the wrong buyer, it can be expensive long term.
Understanding how it works before you write an offer matters.
FAQ
Is California Dream For All only for first-time buyers?
Yes. You must meet CalHFA’s first-time buyer definition.
Do I make monthly payments on the Dream For All assistance?
No. Repayment only happens when you sell or refinance.
Does California take equity if my home goes up in value?
Yes. The state shares in appreciation based on the assistance percentage.
What happens if my home value goes down?
California shares in the loss as well.
Can I refinance if I use Dream For All?
Yes, but the assistance must be repaid at refinance.
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