As previously reported, the budget and accompanying legislation were approved by the Legislature and signed into law by the Governor. One of the items included an allocation of $500 million to CalFHA to fund Senate Pro Tempore Atkins’ proposed new equity sharing down payment assistance program entitled the California Dream for All Program ($500 million).
The money allocated to the California Dream for All program will provide down payment assistance with an equity share component for first time homebuyers making no more than 150% of the area median income. Details are still forthcoming but effectively it will provide homebuyers with up to a 20% down payment, with a small percentage coming from the homeowner. The plan envisions that homeowners will refinance out of that state lien and once the state investment is paid back those funds could be used for other potential homeowners. C.A.R. will provide more information on this program as details are finalized. You can view a webinar on the California Dream for All program here.