2024 CalHFA Dreams for All Down Payment Assistance Program Update
Some exciting updated regarding the State of California’s “Dreams for All” down payment assistance program for 2024!
It is confirmed that it is coming back, but there are some major changes to it this year (some are for the better and some are for the worse). Here are some of them:
-
At least one of the borrowers needs to be a first generational home buyer. CalHFA defines that as a borrowers' parents not currently on title to a home. If your parents have owned a home in the past, but have sold it - that brings you back into qualification! The exception to this rule is if someone came from foster care – previous housing history doesn’t seem to matter in that case. ONLY one of the buyers needs to meet this criteria.
-
It is a LOTTERY. This is because the state of California wants to spread the money out around the state. In 2022, a disproportionate amount of the money stayed in the Sacramento area. AND the funds ran out in about 11 days. If a borrower is selected, we’ll have 60 days to find and close on a property. Applications for the lottery doesn’t open until April. No action is needed by anyone now.
-
Combined income restriction is 120% of the respective county's median income. The median income does vary county by county – so where you buy may have an impact. For example, Riverside County has a different median income than San Diego county.
- Down payment assistance is limited to $150,000 OR 20% (whichever is lower). You can bring in additional funds of your own.
Just wanted to get this information your way – since it’s been a pretty big topic as of late.
Feel free to reach out to us to learn more! We are based in Murrieta and Temcula Valley and here to help!
503-504-8389
Here is a link to an article that I think does the best job (of the one’s I’ve read through) explaining the program changes (Ironically, the CalHFA website doesn’t describe this year’s program yet) https://www.ocregister.com/2024/01/18/dream-for-all-down-payment-assistance-for-first-time-california-homebuyers-relaunches-with-new-lottery/
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.