California Relaunches $250 Million Down Payment Assistance Program for First-Time Homebuyers

California Launches $250 Million Down Payment Assistance Program for First-Time Homebuyers

LOS ANGELES (KABC) — California is set to distribute $250 million in down payment assistance this spring as it relaunches its highly popular program aimed at helping first-time homebuyers.

Last year, the Dream for All program started with $300 million and all funds were depleted in just 11 days.

This year, the California Housing Finance Agency has made changes to reach a more diverse group of borrowers across the state. Instead of a first-come, first-serve basis, the program will now operate through a lottery system.

“The next round of the California Dream For All shared appreciation loan program will be focused on first-generation homebuyers and use a lottery system to ensure an equitable distribution of loans,” read a statement from the department.

Buying a home for the first time can be challenging, with the down payment often being the biggest hurdle for many prospective buyers.

“The resources are limited, they may be saddled with debt from school or other sources, so it is a very big challenge,” said real estate agent Sarah Moore.

The program will provide up to 20% of the purchase price or $150,000, whichever is lower. The loan will be repaid, along with a share of the home’s appreciation when it is sold in the future.

Officials estimate that between 1,700 and 2,000 lottery winners will receive vouchers and will have 60 days to use them towards purchasing a home.

For more information on how to apply for the program, visit the California Housing Finance Agency website.

As home sales have slowed down, the program aims to provide much-needed assistance to first-time homebuyers in a competitive housing market.

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