California Relaunches 'Dream For All' Lottery Program: What To Know

California has relaunched its "Dream For All" program, a state lottery system designed to help first-time homebuyers with down payments. According to ABC7 , the state is offering $250 million in assistance, and, as of Wednesday (April 3) the program is now accepting applications online.

The "Dream For All" program provides up to 20% of the purchase price for a down payment or closing costs, with a maximum limit of $150,000. The program is aimed at first-generation homebuyers and uses a lottery system to ensure an equitable distribution of loans.

Per Cal Matters , the program was so popular last year that it ran out of money in just 11 days. This year, the state hopes to avoid a mad scramble for the loans by replacing its original first-come, first-served model with a lottery. Homebuyers will have until April to find a state-approved lender and start working on an application. A lottery opens in early April, and buyers will have a month to submit their applications.

The state estimates that between 1,700 and 2,000 lucky lottery winners will receive vouchers that they'll then have 90 days to spend on a home. The loan will then be paid back, plus a share of the home's appreciation whenever it sells in the future.

Real estate agent Sarah Moore said that the program is a big help to first-time homebuyers, who often struggle to save enough for a down payment. "The resources are limited, they may be saddled with debt from school or other sources, so it is a very big challenge."

To sign up for the lottery, prospective homebuyers can go to calf.ca.gov .