Last chance! Applications for 2026 "Dream For All" are closing soon: Get ready and win your down payment assistance!
- DW HOMES
- Feb 23
- 6 min read
What is the California Dream For All Program?
This is a form of down payment assistance structured as a shared appreciation loan. It is not a grant; it is a second mortgage that sits behind your primary loan.
The Assistance: You can receive up to 20% of the purchase price or closing costs, with a maximum cap of $150,000.
Repayment: You repay the loan when you sell the home, transfer title, or pay off the first mortgage. You must repay the original assistance amount plus a share of the appreciation in your home's value.
Understanding Shared Appreciation: Two Examples
Shared appreciation is a little more complex than a typical mortgage loan. CalHFA provides the following examples to illustrate how it works based on your income level.
Example #1: Moderate-Income Homebuyer
This applies to borrowers earning between 80% and 150% of the Area Median Income (AMI).
In this scenario, the Dream For All program provides a loan for 20% of the home purchase price. The homeowner pays back the original loan amount plus 20% of any appreciation.
The Numbers:
Purchase Price: $500,000
DFA Loan(20%): $100,000
Home Sale Price (5 years later): $640,000
Total Appreciation：$140,000
The Payoff：
When the home sells for $640,000:
DFA Share of Appreciation (20% of $140,000): $28,000
DFA Principal Repayment: $100,000
Total DFA Loan Payback: $128,000
The homeowner keeps the remaining proceeds from the sale.
Example #2: Lower-Income Homebuyer (≤80% AMI)
This applies to borrowers with income less than or equal to 80% AMI (using the HomeReady Lookup Tool
For these borrowers, there is a reduced appreciation share. The program appreciation share is equal to 0.75 times the Shared Appreciation Loan amount as a percentage of the home value. In practical terms, this means the homeowner pays back the original loan amount plus 15% of any appreciation.
The Numbers:
Purchase Price: $500,000
DFA Loan (20%): $100,000
Home Sale Price (5 years later): $640,000
Total Appreciation: $140,000
The Payoff:
When the home sells for $640,000:
DFA Share of Appreciation (15% of $140,000): $21,000
DFA Principal Repayment: $100,000
Total DFA Loan Payback: $121,000
The homeowner keeps the remaining proceeds from the sale.
How to Get in Line: The Voucher Lotter
CalHFA has confirmed that for the 2026 cycle, there will be no lines or first-come, first-served registration. However, a voucher will be open from February 24 to March 16, 2026. Start preparing now.
A lottery system will randomly select registrants to receive a voucher. Being selected gives you a reserved spot in the program, allowing you to house hunt with the assistance already secured.
Eligibility Requirements
To qualify, you must meet all of the following criteria. Please read these definitions carefully, as they are specific to this program.
Are You a First-Time Homebuyer?
According to CalHFA, a first-time homebuyer is defined as someone who has not owned and occupied their home in the last three years, and who has not lived in a home owned by a spouse in the past three years.
If any of these circumstances happened more than 3 years ago, or you have never owned a home, you can apply.
Note: Exceptions may apply, so please talk to one of CalHFA's Preferred Loan Officers for more information.
Are You a First-Generation Homebuyer?
This requirement is only applicable to the California Dream For All Shared Appreciation Loan Program.
To qualify, at least one borrower must meet both of the criteria below:
1A: A first-generation homebuyer is defined as a homebuyer who has not been on title, held an ownership interest, or have been named on a mortgage to a home (on a permanent foundation and owned land) in the United States in the last 7 years.
AND
2A: To the best of the homebuyer's knowledge, whose parents (biological or adoptive) do not have any present ownership interest in a home in the United States (or if deceased, whose parents did not have any ownership interest at the time of death in a home in the United States).
OR
2B: An individual who has at any time been placed in foster care or institutional care (a type of out-of-home residential care for large groups of children by non-related caregivers).
Additional Requirements
Residency: At least one borrower must currently reside in California.
Income Limits: Your household income must fall within the CalHFA Income Limits for the specific county where you intend to purchase (see table below).
2025 Income Limits by County
The following limits are effective as of June 9, 2025. Be sure to check the county where you plan to buy, as limits vary significantly across the state.
County | Income Limit | County |
Alameda | $253,000 | Placer |
Alpine | $205,000 | Plumas |
Amador | $174,000 | Riverside |
Butte | $153,000 | Sacramento |
Calaveras | $160,000 | San Benito |
Colusa | $152,000 | San Bernardino |
Contra Costa | $253,000 | San Diego |
Del Norte | $148,000 | San Francisco |
El Dorado | $191,000 | San Joaquin |
Fresno | $148,000 | San Luis Obispo |
Glenn | $148,000 | San Mateo |
Humboldt | $148,000 | Santa Barbara |
Imperial | $148,000 | Santa Clara |
Inyo | $153,000 | Santa Cruz |
Kern | $148,000 | Shasta |
Kings | $148,000 | Sierra |
Lake | $148,000 | Siskiyou |
Lassen | $148,000 | Solano |
Los Angeles | $168,000 | Sonoma |
Madera | $148,000 | Stanislaus |
Marin | $295,000 | Sutter |
Mariposa | $148,000 | Tehama |
Mendocino | $148,000 | Trinity |
Merced | $148,000 | Tulare |
Modoc | $148,000 | Tuolumne |
Mono | $187,000 | Ventura |
Monterey | $165,000 | Yolo |
Napa | $232,000 | Yuba |
Nevada | $197,000 | |
Orange | $216,000 |
How to Prepare: Your Pre-Registration To-Do List
The most important thing to understand is that you cannot register for a voucher without preparation. You must have a California Dream For All (DFA) Lender Pre-Approval Letter before you can enter the lottery.
Here are the steps you need to take today:
The most important thing to understand is that you cannot register for a voucher without preparation. You must have a California Dream For All (DFA) Lender Pre-Approval Letter before you can enter the lottery.
Here are the steps you need to take today:
1. Contact an Approved Lender
Important: CalHFA does not lend money directly to consumers. They work through and use approved lenders to qualify consumers and to make all mortgage loans.
You must find a CalHFA Approved Lender that is offering the Dream For All program. Work with your loan officer to get your finances in order to secure that specific Pre-Approval Letter.
Note on Interest Rates: Interest rates will vary depending on your financial circumstances, lender fees, and other factors. Rates can also change daily. You should check with a CalHFA-approved loan officer to receive an accurate rate quote for this program. The fees you pay could be different depending on the lender and the program. You can view sample Annual Percentage Rates (APRs) on the CalHFA website.
2. Complete the Homebuyer Education Requirements
There are two separate education requirements for this program. Only one occupying first-time borrower on each loan transaction needs to complete them.
Requirement A: Homebuyer Education and Counseling (8-hour course)
This is the standard course required for first-time homebuyers using a CalHFA program.
Online Option: eHome's eight-hour Homebuyer Education and Counseling course is the only online course accepted by CalHFA. (Fee: $100)
Important: Other online courses like Frameworks and HomeView are not acceptable because they do not provide a one-hour, 1-on-1 counseling follow-up session.
In-Person or Virtual Option: Live Homebuyer Education and Counseling through NeighborWorks America or any HUD-Approved Housing Counseling Agency. (Fee varies by agency)
Requirement B: California Dream For All Shared Appreciation Loan Education (1-hour course)
This course is free and online only. It covers what shared appreciation is and how it affects your mortgage repayment.
3. Gather Your Documents
You will need the following items ready to go when the registration portal opens:
DFA Lender Pre-Approval Letter (This is mandatory).
Government ID: (Passport, Driver's License, State ID, Military ID, Permanent Resident Card, Visa, or Employment Authorization Document).
Foster Care Documentation (if applicable): Foster Care Verification Form/Letter or court documents.
Parent Information: You will need specific details for both parents of the designated first-generation borrower:
Full Name
Date of Birth
Date of Death (if applicable)
Current Address
Proof of Relationship: (Birth Certificate or Adoption Papers).
Stay Updated
The specific dates for the 2026 registration window have not been set yet. To ensure you don't miss the announcement, sign up for the CalHFA e-newsletter to get real-time updates on the program launch.
Final Thought: The Dream For All program is a golden ticket for many aspiring homeowners, but it requires preparation. Since the selection is random, your best strategy is to have your pre-approval and documents ready to go the moment registration opens.
Disclaimer: This information is based on the official CalHFA guidelines (including Income Limits effective 06.09.2025 and official program definitions) and is for informational purposes only. Please consult with a CalHFA-approved lender for advice regarding your specific financial situation.
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