MasonMac has rolled out a solution to help first time home buyers in California achieve the dream of home ownership. With the Dream for All program, CalHFA will offer qualifying first time home buyers up to 20% of a home purchase price toward down payment and closing costs in the form of a shared appreciation loan.
This is huge news to help address the affordability challenges that are prevalent in much of California. For those looking to buy their first home that haven’t been able to save enough for a down payment, Dream for All can help assist with covering down payment requirements and closing costs.
As with most CalHFA loan programs, there are restrictions and unique qualifying considerations to meet the Dream for All program:
- Buyers must be first time home buyers, defined by CalHFA as those buyers who have not owned a primary residence within the most recent 3 year period
- Buyers must meet county area median income requirements (income limits vary by county)
- The Dream for All program is a 2nd mortgage that ‘piggybacks’ on to a conventional first mortgage loan, which must be a CalHFA first mortgage
- Funds are limited and program is set to end when allotted funds are exhausted
- California home buyers only, property must be a primary residence
With MasonMac’s Dream for All offering, a 2nd mortgage is set up that covers down payment and closing cost requirements, and the borrower does not have to make payments on this second mortgage. Since it is a shared appreciation program, the loan is due to be repaid when the home buyer sellers their home, refinances, or pays their first mortgage in full. When the loan is repaid, the original amount borrowed is repaid, and depending on the borrower’s income in relation to their area median income, a percentage of the earned home appreciation is also paid back to CalHFA.
Due to the shared appreciation, the program may not be financially beneficial to everyone, however it’s a tremendous option for those with low to moderate income living in high cost areas since it eliminates the burden of saving a large amount of money for down payment or closing costs.
Want to know if MasonMac’s CalHFA Dream for All program is right for you? Give us a call and we’ll be happy to answer any questions you may have about this or any of our other down payment assistance options.