/r/OrangeCounty - Orange County, CA Subreddit

California passed SB-197, which gave birth to the housing program California Dream for All. This program isn't available to apply for until 3/27/2023; however, the guidelines and details about the program have been released. You can verify all the info in my post here. This program is similar to the 10% down program CalFHA had last year. Like that previous program, this program only has a set amount of funds available.

What is the program?

Through shared appreciation, The California Housing Finance Agency (CalHFA) will provide 20% down payment assistance, in the form of a silent second loan. There is not a monthly payment associated with this loan; however, should you sell, refi, or transfer ownership, you will have to repay the loan they provided to you, as well as a portion of the appreciation. This loan does not turn into a grant.

- For Example -

$500,000 purchase price.

CalHFA will give you $100,000

This amount doesn't include what you would owe through shared appreciation.

What does shared appreciation mean?

CalHFA is entitled to 15% or 20% of the appreciation gained the purchase date. Whether you pay 15% or 20% will depend on your income. Per the guidelines, buyers whose income is between 80% - 150% of your county's Area Median Income (AMI) pay 20% of the appreciation. Most buyers are going to be within this range. If your income is less than 80% then CalHFA will only take 15%.