The California Dream for All program, a state initiative designed to help first-time, first-generation homebuyers secure a down payment, reopened in April 2024. Last year, the program made headlines by exhausting its $300 million in funding within just 11 days. This year, with $250 million available, the program was expected to assist between 1,600 to 2,000 new applicants. However, the application window, which ran from April 3 to April 29, has now closed, leaving many hopeful homebuyers eager to see if they were selected through the program’s lottery system.
Understanding the Program
The California Dream for All program is unique in several ways. Unlike the first-come, first-served basis of 2023, the 2024 funding was distributed through a lottery system, giving a broader range of applicants a fair chance at receiving assistance. The program provided a generous 20 percent down payment (up to $150,000), which eliminated the need for mortgage insurance—a significant saving for homebuyers.
To qualify, at least one borrower had to be a first-generation homebuyer, and all borrowers had to be first-time homebuyers, meaning they had not owned a home in the past three years. The loan is repayable when the house is sold, making it a sustainable option for many.
Alternative Down Payment Assistance Programs
For those who missed the opportunity to apply for the California Dream for All program, or are looking for additional options, there are other down payment assistance programs available. David Greco, Branch Manager at Premier Mortgage Resources, highlights the Arrive Home Down Payment Assistance (DPA) program as an excellent alternative. The Arrive Home program offers a 3.5 percent forgivable down payment for FHA purchases or up to 5 percent as a repayable option.
In neighboring Nevada, programs like NV Rural’s Home at Last provide 1-4 percent DPA, while Home Means Nevada offers a flat $25,000 if you purchase a home in a community with a population under 150,000. These programs cater to different needs and locations, giving potential homebuyers various avenues to explore.
Looking Ahead
Although the California Dream for All program is now closed, its reopening has shown the ongoing demand for down payment assistance in a challenging housing market. Keep an eye on similar programs that may become available in the future, and continue preparing for your homeownership journey with the resources and support available today.
While the application period for the California Dream for All program has passed, there are still opportunities to secure down payment assistance through other programs. Potential homebuyers should explore options like Arrive Home’s DPA program or similar initiatives in their state. Consulting with a mortgage professional can help identify the best available programs tailored to your specific needs.
Referencing article: https://southtahoenow.com/story/03/17/2024/california-dream-all-first-time-homebuyer-program-opens-again-april