California’s highly anticipated Dream for All (DFA) program is nearly here, and for the right buyer, it can be a game-changer. The voucher application window is February 24 – March 16, and you must have a preapproval letter in hand in order to apply.
This program is designed to help first-generation, first-time homebuyers overcome one of the biggest barriers to homeownership: the down payment. Below is a clear breakdown of how it works, who may qualify, and what to expect.
What Is the Dream for All Program?
Dream for All is a shared-appreciation down payment assistance program offered through CalHFA.
Program Highlights:
- Offers up to 20% of the purchase price toward down payment and/or closing costs
- Maximum assistance amount: $150,000
- Assistance comes in the form of a silent second loan
- Buyers must register for a voucher
- Vouchers are awarded through a randomized drawing
👉 Only buyers who receive a voucher can move forward with the program.
Who Is Eligible?
To qualify, all of the following must apply:
- At least one borrower must be a first-generation homebuyer
- This generally means your parents did not own a home in the U.S., or you were in foster care
- At least one borrower must currently live in California
- All borrowers must be first-time homebuyers
- Household income must be within CalHFA’s income limits for the county where you’re buying
Because the rules are very specific, eligibility should be reviewed carefully before you apply for the voucher.
Required Documents
If selected for a voucher, you’ll need to provide documentation, including:
- California Dream for All Lender Pre-Approval Letter (I would provide this to you upon preapproval)
- Government-issued ID
- Passport, driver’s license, state ID, military ID, permanent resident card, visa, or work authorization
- Foster care documentation (if applicable)
- Parent information for the first-generation borrower, including:
- Names
- Dates of birth (and death, if applicable)
- Current addresses
- Proof of parent-child relationship (birth certificate or adoption papers)
Being organized and prepared will be critical — timelines move fast once vouchers are issued.
How Shared Appreciation Works (In Plain English)
This is the part that often gets overlooked.
Dream for All assistance is not free money. In exchange for the down payment help, CalHFA shares in the future appreciation of the home.
Here’s the general idea:
- When you sell the home, refinance, or pay off the mortgage
- You repay:
- The original assistance amount plus
- A percentage of the home’s appreciation
While this reduces your upfront cash needs, it’s important to understand the long-term trade-off. For many buyers, the ability to buy now instead of waiting years outweighs the shared appreciation later — but it’s not a one-size-fits-all solution.
I always recommend reviewing real-life examples to fully understand how this impacts future equity.
Important Things to Know
- Funds are limited
- Demand is extremely high
- Receiving a voucher does not guarantee you’ll successfully buy a home
- Working with an experienced lender and agent is essential
Preparation, realistic expectations, and speed matter with this program. Contact me to get preapproved – my deadline for processing in order to provide you with a preapproval letter is March 11.
