Key Takeaways
- Qualified first-time home buyers can get up to $150,000 in down payment or closing cost assistance
- Applicants will be picked through a lottery system
- Registration re-opens mid-February 2026
California Dreamin’
California first-time home buyers who need down payment assistance have a program that’s re-opening in early 2026.
The California Housing Finance Agency (CalHFA) will relaunch the third round of its Dream for All Shared Appreciation Loan Program for qualified first-generation home buyers.
If you meet the requirements and get selected in the lottery system, you could receive a grant of up to $150,000. Here’s how.
Find your lowest rate. Start hereThe Dream For All Shared Appreciation Loan
Affordability stands as a barrier to many first-time home buyers, especially in an expensive state like California.
Luckily, there is help available for prospective borrowers. The California Dream for All Shared Appreciation Loan Program (DFA) provides down payment assistance funding up to 20% or $150,000 of the home’s sales price.
The exact dates for application portal haven’t been announced, but registration will open in “mid-February,” according to a CalHFA spokesperson.
In order to qualify for CalHFA’s DFA program, at least one borrower must be a first-generation home buyer, one borrower must be a current California resident, all borrowers must be first-time buyers, and must meet the income limits for their county. You’ll also need to meet CalHFA’s overall borrower eligibility requirements.
The program is designed to give more people access into homeownership and the ability to accrue wealth. For that help, you’ll have to pay back some of those gains when you sell your property. The state housing authority will collect the initial 20% plus a percentage of the increased value of your home.
“Dream For All can really make a difference for Californians trying to buy their first home,” said Tony Sertich, executive director at CalHFA. “Its high level of assistance and focus on first-generation homebuyers makes sure the help goes to those who need it the most.”
Winners will be selected through a lottery draw after the application period ends. However, CalHFA recommends to apply earlier rather than later so you have plenty of time to gather all the needed documentation and go through any possible validation processes.
CalHFA Dream For All required documents
- California Dream For All (DFA) Lender Pre-Approval Letter
- Government ID; such as a passport, driver's license, military ID, permanent residence cards, visas or employment authorization documents
- Proof of parent relationship (birth certificate or adoption papers; or foster care verification forms if applicable). This includes information on both of the first-generation homebuyer's parents, like their names, birth dates, and dates of death, if applicable.
The DFA loan program helped 2,182 buyers when it launched in 2023, according to CalHFA spokesperson, and over 1,700 in 2024.
California is consistently one of the most expensive states in the country. The median California home sales price reached $838,700 in October, an annual decrease of 0.13%, according to Redfin.
“The California Dream For All program is all about opening doors for first-generation home buyers and offering more opportunities for future generations,” CalHFA said in a statement to The Mortgage Reports. “Homeownership has many financial benefits, from building equity that can help fund a college education to providing stable housing costs without the worry of rent increases.”
Find your lowest rate. Start hereThe Bottom Line
Affordability can be tough if you’re a first-time home buyer in California.
If you meet the eligibility requirements, the California Dream for All Shared Appreciation Loan Program can help you become a homeowner. But even if you don’t, the state offers many other assistance programs.
If you’re ready to begin or learn more, talk to a local mortgage professional to see what you qualify for.
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