CalHFA 20% down payment assistance program
CalHFA Dream for All Shared Appreciation Loan Program
Latest News- March 2023
Are you a first-time homebuyer in California looking for financial assistance? Premier Home Financing has the perfect solution for you – CalHFA’s Dream For All CalHFA 20% down payment assistance program.
Our program offers down payment assistance to first-time homebuyers in conjunction with the Dream For All conventional first mortgage program. With up to 20% of the sales price or appraised value (whichever is less) available as a second lien, the Dream For All Shared Appreciation Loan program can help you make your dream of owning a home a reality.
Our program is available to qualified individuals across California, and we ensure that income limits are in place to provide financial assistance to those who need it.
Borrower Requirements
Each borrower must:
• be a first-time homebuyer.
• be either a citizen or other National of the United States, or a “Qualified Alien” as defined at 8 U.S.C § 16
• meet credit, income, and loan requirements of CalHFA’s first mortgage loan program.
Borrower Education Requirement
Homebuyer Education Homebuyer Education is required
Additionally, Borrowers are required to complete CalHFA homebuyer education specifically for CalHFA 20% down payment assistance program Shared Appreciation loans.
First-Time Homebuyer Definition
To qualify for the CalHFA 20% down payment assistance program, Shared Appreciation Loan, all borrowers, including co-borrowers must reside in the home and meet the definition of a first-time homebuyer. A first-time homebuyer is defined as a borrower who has not had an ownership interest in any principal residence or resided in a home owned by a spouse during the past three years.
Owner Occupancy
All borrowers must occupy the property as their primary residence within sixty (60) days of closing. Non-occupant co-borrowers are not allowed. Non-occupant co-signors are not allowed.
CalHFA 20% down payment assistance program features two different shared appreciation loan terms, depending on your income.
Reimbursable down payments in the amount of 20% of the purchase price with no monthly payments or interest payments until the sale or refinance. Upon which the original down payment amount is due plus the additional shared appreciation schedule below:
20% appreciation if your income is above the 80% median income in your county,
15% shared appreciation if the income is below 80% of the median income limit in your county
See below for an example of how CalHFA 20% down payment assistance program works.
How the program works
Here’s an example of how CalHFA 20% down payment assistance program works:
Example :
20% Shared Appreciation Loan Scenario: Sale or refinance after 5 years
$500,000 (A) Original sales price or original appraisal
20% (B) of the Sales price $100,000 ( Shared appreciation Loan)
$500,000 X 20% = $100,000
At the time of sale, refinance, or other transfer
$700,000 (C) new value ( After 5 years)
$200,000 Appreciation (C – A)
$700,000 – $500,000 = $200,000
$40,000 (D) 20% of the Appreciation
The borrower owes: $100,000 Original Shared Appreciation loan (B) + $40,000 (D)
Program Share of Appreciation (D) $140,000 Total (B + D)
Net to the borrower after the sale or refinance: $60,000 + paid to principal approx $30,000 =$90,000
At Premier Home Financing, we are committed to helping first-time homebuyers in California achieve their dreams of homeownership. Contact Sal Ciubancan, our expert, at (714) 794-8639 today to learn more and take advantage of this incredible opportunity. Don’t let finances hold you back from owning your dream home – let us help you today.
