California is set to revive its focus on first-generation homebuyers with the upcoming launch of the Dream for All program, which will provide up to $150,000 in down payment assistance loans. From February 24 to March 16, 2024, eligible buyers can apply through a lottery system for a share of the approximately $200 million allocated to this initiative. The program aims to support joint buyers where at least one is a first-generation homebuyer, as well as individual applicants.
The California Housing Finance Agency (CalHFA) administers the Dream for All program. Those who participate will be required to repay between 15% and 20% of the appreciated value of their homes once they are sold. This repayment will contribute to a generative fund intended to ensure the program’s sustainability. Tony Sertich, director of CalHFA, emphasized the program’s long-term vision, stating, “As these homeowners begin to repay their loans, the funds are reinvested into the program to create a cycle that will continue far into the future, planting the seeds of generational wealth to help keep the California dream alive.”
This year marks the third iteration of the program, which was first launched in March 2023. The initiative has already had a significant impact on potential homeowners. For instance, Deborah Jang, a 30-year-old occupational therapist from Anaheim, successfully purchased a $700,000 condominium in Anaheim Hills with a $140,000 loan from the Dream for All program. Jang remarked, “If it wasn’t for this program, I don’t think we could have even bought a home.”
Despite the program’s benefits, concerns about its effectiveness in addressing California’s housing crisis persist. Mortgage lender Rajat Jetley, who has assisted numerous clients in securing homes through this initiative, pointed out that the broad eligibility criteria led to funds being depleted rapidly during the program’s first year. As a result, some applicants found the program less appealing in subsequent years. He stated, “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.”
Over the past two years, approximately 4,100 applicants received nearly $550 million in assistance, a figure Jetley described as “a drop in the bucket” for a state with a population of around 40 million. He expressed concerns that the focus on first-generation homebuyers may overlook the broader issues contributing to the intergenerational housing crisis, adding, “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.”
The application process for the Dream for All program is accessible online via the CalHFA website. Interested parties can find detailed instructions and application guidelines before the program opens on February 24 and closes on March 16. Further assistance is available through the CalHFA hotline at 877.9.CalHFA or 1-877-922-5432, with instructions offered in multiple languages, including Spanish, Vietnamese, Chinese, Korean, and Tagalog.
