California Is Giving First-Time Homebuyers Up to $150K Down Payment Help

First-time homebuyers in California are in for some much-needed help in the form of a down payment. Applications are now open for the California Dream For All shared Appreciation Loan.

The program offers up to 20% down payment assistance or closing costs, which cannot be more than $150,000.

A homebuyer must register for the voucher—this is done through a random drawing that will select registrants who'll receive the voucher. It is not first come, first serve.

"What it does, it helps people with a pretty significant down payment of 20% of the value of the home, for folks who've got good credit scores, steady jobs," Eric Johnson with the California Housing Finance Agency told ABC30.

If a California resident previously applied, but was not accepted or waitlisted, they're eligible to reapply.

Applicants who received a Dream For All (DFA) voucher can view the voucher status, download a copy of the voucher, request a one-time extension, or cancel the voucher.

The application window will close on March 16. After that, applications will be selected. Recipients of conditional approval will have 90 days to shop for a home.

Keep in mind that when the home is sold or transferred, or when the first mortgage is paid in full, the homebuyer must repay the original down payment loan, plus a share of the home's appreciation.

Who is eligible

To be eligible for the down payment assistance:

• One borrower must be a California resident.
• One borrower must be a first-generation homebuyer.
• All borrowers must be a first-time homebuyer.

Income must meet the California Housing Finance Agency Income Limits for the county where the home is being purchased.

Income limits range from $148,000 to $309,000 (in Santa Clara County).

The January median list price in the state of California is $698,000, according to Realtor.com® data.

Required documents

Once eligibility requirements are met, several documents are required to move through the process.

• DFA Lender Pre-Approval Letter
• Valid government ID: Passport, driver’s license, state-issued ID, military ID, permanent residence card, visa, or employment authorization document 
• Foster care documentation (if applicable): Foster Care Verification Form/Letter or court documents
• The DFA voucher application will require information for both parents of the designated first-generation borrower(s), including the following:
  • Name
  • Date of birth
  • Date of death (if applicable)
  • Current address
• Proof of parent relationship
  • Birth certificate
  • Adoption papers

• Name
• Date of birth
• Date of death (if applicable)
• Current address

• Birth certificate
• Adoption papers

Program funds

Vouchers for the program will be drawn in each region to give California residents an opportunity for the down payment assistance.

For this round, the state says about $150 million is available. In 2024, there were 18,000 people who applied and 2,000 people were approved for the monetary help.

Johnson told the outlet that the agency anticipates the same number of people will be approved for a loan, which eventually must be paid back.

"The long-term goal is that when somebody buys a home with one of these loans and then they sell or refinance the home, they have to pay back that money with some extra, and then we use those funds to fund the next round of homebuyers," Johnson explained.