California’s initiative to support first-generation homebuyers is set to ramp up with the rollout of the Dream for All program, which will offer approximately $200 million in down payment assistance. Beginning on February 24, 2024, and running until March 16, 2024, eligible buyers can apply through a lottery system. The program provides up to $150,000 in loans for down payments, catering to joint applicants, including at least one first-generation homebuyer and one resident of California. Single applicants are also welcome to participate.
The California Housing Finance Agency (CalHFA) oversees this program, which is designed to alleviate the financial burden faced by many aspiring homeowners. According to Tony Sertich, director of CalHFA, the goal is to create a sustainable fund. As homeowners sell their properties, they are required to repay 15% to 20% of the appreciated value back to the fund, fostering a cycle of reinvestment aimed at promoting generational wealth.
This marks the third round of the program, initially launched in March 2023. The Dream for All program has already had a significant impact on individual stories of homeownership. For instance, Deborah Jang, a 30-year-old occupational therapist from Fullerton, utilized a $140,000 loan from the program to purchase a $700,000 condominium in Anaheim Hills last year. Reflecting on her experience, Jang stated, “If it wasn’t for this program, I don’t think we could have even bought a home.” She emphasized the challenges of saving for a down payment amid rising interest rates and housing prices, which made homeownership increasingly elusive for her family.
Despite its positive impact, some industry experts express concern regarding the program’s limitations. Rajat Jetley, a mortgage lender based in Orange County, highlighted that while the initiative provides essential support, the broad eligibility criteria led to funds being quickly depleted in previous years. He noted that approximately 4,100 applicants received nearly $550 million in assistance over the last two years, a figure he described as “a drop in the bucket” for a state with a population of 40 million.
Jetley also raised questions about the program’s focus on first-generation homebuyers, suggesting that the criteria may overlook the realities of the ongoing housing crisis. He remarked, “I think their thought process is that if your parents own a home, they could potentially leave it to you, which I think is just completely ridiculous.” Jetley argues that the existing limitations could perpetuate the intergenerational challenges faced by many families.
As California grapples with a significant housing affordability crisis, Jetley advocates for a more comprehensive approach to address the supply side of the housing market. He stated, “Is it a good program? Absolutely. In terms of solving the housing crisis, the supply side would be the side that they should really be targeting.”
For those interested in applying, detailed instructions can be found on the CalHFA website at calhfa.ca.gov/dream/#nextsteps. The program will remain open for applications from February 24 to March 16. Interested parties can also call 877.9.CalHFA or 1-877-922-5432 for further guidance. Instructions are available in multiple languages, including Spanish, Vietnamese, Chinese, Korean, and Tagalog, upon request.
As California continues to implement innovative solutions to empower first-generation homebuyers, the Dream for All program stands as a vital resource in making homeownership more accessible in an increasingly competitive market.
