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Key Takeaways
- Qualified first-time home buyers can get up to $150,000 in down payment or closing cost assistance
- Applicants will be picked through a lottery system
- California ‘Dream For All’ 2026 registration open through March 16
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A down payment assistance program for California first-time home buyers closes after March 16.
The California Housing Finance Agency’s (CalHFA) third round of its Dream for All Shared Appreciation Loan Program for qualified first-generation home buyers is currently open – but not for much longer.
If you meet the requirements and get selected in the lottery system, you could receive a grant of up to $150,000. Here’s how.
The Dream For All Shared Appreciation Loan
Affordability stands as a barrier to many first-time home buyers, especially in an expensive state like California.
Luckily, there is help available for prospective borrowers. The California Dream for All Shared Appreciation Loan Program (DFA) provides down payment assistance funding up to 20% or $150,000 of the home’s sales price.
The application portal is open from February 24 to March 16, 2026. CalHFA said it expects to have between $150 million and $200 million in program funding.
In order to qualify for CalHFA’s DFA program, at least one borrower must be a first-generation home buyer, one borrower must be a current California resident, all borrowers must be first-time buyers, and must meet the income limits for their county. You’ll also need to meet CalHFA’s overall borrower eligibility requirements.
The program is designed to give more people access into homeownership and the ability to accrue wealth. For that help, you’ll have to pay back some of those gains when you sell your property. The state housing authority will collect the initial 20% plus a percentage of the increased value of your home.
“The California Dream For All program has already helped thousands of Californians buy their first home,” said Tony Sertich, executive director at CalHFA. “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.”
Winners will be selected through a lottery draw after the application period ends. However, CalHFA recommends to apply earlier rather than later so you have plenty of time to gather all the needed documentation and go through any possible validation processes.
CalHFA Dream For All required documents
- California Dream For All (DFA) Lender Pre-Approval Letter
- Government ID; such as a passport, driver’s license, military ID, permanent residence cards, visas or employment authorization documents
- Proof of parent relationship (birth certificate or adoption papers; or foster care verification forms if applicable). This includes information on both of the first-generation homebuyer’s parents, like their names, birth dates, and dates of death, if applicable.
The DFA loan program helped 2,182 buyers when it launched in 2023, according to CalHFA spokesperson, and over 1,700 in 2024.
California is consistently one of the most expensive states in the country. The median California home sales price reached $792,800 in December, an annual decrease of 1.2%, according to Redfin.
“The California Dream For All program is all about opening doors for first-generation home buyers and offering more opportunities for future generations,” CalHFA said in a statement to The Mortgage Reports. “Homeownership has many financial benefits, from building equity that can help fund a college education to providing stable housing costs without the worry of rent increases.”
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The Bottom Line on the California Dream for All Program
Affordability can be tough if you’re a first-time home buyer in California.
If you meet the eligibility requirements, the California Dream for All Shared Appreciation Loan Program can help you become a homeowner. But even if you don’t, the state of California offers many other assistance programs.
If you’re ready to begin or learn more, talk to a local mortgage professional to see what you qualify for.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
By refinancing an existing loan, the total finance charges incurred may be higher over the life of the loan.
