State program aims to help low-income people in region buy home

Region residents who yearn to buy a house but are unable to afford it can apply for a state program aimed at helping low- to moderate-income families become homeowners. The program through the California Housing Finance Agency, "Dream For All," can help homeowners who qualify with as much as 20 percent in down payment help, to a maximum of $150,000. Applications will begin being accepted on Feb. 24. First-time homeowners who earn less than $191,000 in Placer County could qualify for the program. The life-changing down payment assistance program, which offers first-generation homebuyers up to 20 percent of their home purchase price or appraised value in down payment assistance, will be using a random selection process to facilitate the equitable distribution of state funds. CalHFA expects to make $150 million to $200 million available for 2026, and potential applicants should start getting ready now. The random selection process will include Governor Newsom's direction that at least 10 percent of the funding goes to applicants in a Qualified Census Tract. The application window will close March 16. Applications then will be selected and audited. Recipients of conditional approval will have 90 days to shop for a home. "The California Dream For All program has already helped thousands of Californians buy their first home," said CalHFA Executive Director Tony Sertich. "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." Applicants will need to work with one of CalHFA's approved lenders to get a pre-approval letter before submitting their application. Other documents will be needed for submission, including a government-issued ID and parent information. The complete list is located on the Dream For All webpage along with other valuable program information. "I didn't think there was any way we could afford a house, especially in this area," said Craig Terry, a youth program manager in Grass Valley. Terry and his wife applied for Dream For All but were placed on a waiting list. A few months later, the couple were approved and bought a home in August 2024. "It was a waiting game. Then, it got very real very quickly." Dream For All addresses the challenge of buying a home in California in several ways. First-generation homebuyers can receive a large-enough down payment to eliminate the need for mortgage insurance and benefit from smaller monthly payments. The program's shared appreciation loan will save the average homebuyer about $1,200 per month, according to California Forward, a nonprofit policy advocacy organization that prepared a report on shared appreciation for the California State Treasurer's Office in 2022. All borrowers must meet CalHFA's Dream For All income limits – about $148,000 in Del Norte County, $168,000 in Los Angeles County and $309,000 in Santa Clara County. The 2025-26 state budget provided $300 million for the Dream For All program, which will allow CalHFA to help 2,000 additional households, including homebuyers on the wait list. Additionally, as those homeowners sell their homes, the state will recover the down payment plus a proportionate share of the appreciation and recycle those funds to assist more homebuyers.