California Dream for All Down Payment Assistance Program

California's housing affordability crisis has made it increasingly difficult for many families to achieve homeownership. The California Dream for All program, administered by the California Housing Finance Agency (CalHFA), aims to change that by offering substantial down payment assistance to first-time and first-generation homebuyers. If you're considering buying a home in California, this program could be a game-changer for your journey.

What Is California Dream for All?

California Dream for All is a shared appreciation loan program that provides eligible homebuyers with up to 20% of the purchase price (capped at $150,000) to use toward their down payment and closing costs. Unlike traditional loans, you don't make monthly payments on this assistance. Instead, you repay the original loan amount plus a share of your home's appreciation when you sell, transfer, refinance, or pay off your first mortgage.

This structure allows CalHFA to recycle funds and help more families over time, while giving you the boost you need to get into a home today.

Key Program Details

Eligibility Requirements

To qualify for California Dream for All, you must meet several criteria:

• First-time homebuyer: You (and your co-borrower, if any) must not have owned a home in the past three years.
• First-generation homebuyer: At least one borrower must be a first-generation homebuyer—meaning neither of your parents owned a home during your lifetime—or you must have been in foster care at any point.
• Income limits: Household income cannot exceed 120% of the area median income (AMI) for your county. Limits vary by location and household size.
• Primary residence: You must occupy the home as your primary residence.
• CalHFA-approved lender: You must obtain your first mortgage through a CalHFA-approved lender.

How It Works

Once you're approved, the California Dream for All funds are applied at closing. They reduce the amount you need for your down payment and can cover closing costs, which lowers your upfront cash requirement and may help you avoid private mortgage insurance (PMI) by bringing your loan-to-value ratio to 80% or below.

When you eventually sell, refinance, or transfer the property, you repay the original assistance amount plus a percentage of the home's appreciation. This shared appreciation model ensures the program can continue helping future buyers.

Application Process & Timing

California Dream for All operates on a lottery-based application system due to high demand. The 2025 application window has closed, and the next round is expected to open in early 2026. To prepare:

1. Complete a CalHFA-approved homebuyer education course.
2. Get pre-approved with a CalHFA-approved lender.
3. Monitor CalHFA's website for the next application window announcement.
4. Submit your application during the open period.

Is Buying Right for You?

Down payment assistance can make homeownership more accessible, but it's still important to consider whether buying makes sense for your situation. Factors like how long you plan to stay, your job stability, and local market conditions all play a role. Our Rent vs Buy Calculator helps you compare the costs of renting versus buying over time, so you can make an informed decision before applying for programs like California Dream for All.

You can also use our Affordability Calculator to estimate how much home you can afford with different down payment scenarios, including with assistance.

Next Steps

If you believe you may qualify for California Dream for All, start by visiting the CalHFA Dream for All page for the latest program details, income limits, and application updates. Work with a CalHFA-approved lender to get pre-approved and complete homebuyer education. When the next application window opens, you'll be ready to apply.

California Dream for All has already helped thousands of families achieve homeownership. With preparation and persistence, it could help you too.