California First-time Homebuyer Loan Program Reopened

There is some good news for people in California who want to buy a home for the first time. For those of you who need extra help with your down payment, there is service available.

The California Dream For All Shared Appreciation loan scheme has been brought back to life, the state said. Since it started last year, the program has been very popular. In fact, the $300 million that was set aside to help first-time owners ran out in just 11 days.

California First-time Homebuyer Loan ProgramPhoto byfoxla

Through a program run by the California Housing Finance Agency, qualified people can get a 20% discount on the price of their home, which is meant to help with the down payment. This year, there have been some big changes to the program.

The program is set up to work on a first-come, first-served lottery method so that it can handle the expected large number of applications quickly. Let's look more closely at how it works now.

The drawing will start in April, but the exact date has not been set yet. The application page will close in May, so people who want to apply will need to move quickly.

Cal Matters says that between 1,700 and 2,000 people will be chosen to receive the gift. The coupon has to be used within 60 days of being issued.

People who have never owned a home or who owned a home three years or more ago and sold it can apply, according to CalHFA. Keep in mind that one of your goals should be to live in the house you just bought.

People who want to buy a home must work with lenders that are allowed by the state and meet certain income requirements that vary by county. The income limit has been dropped to 120% of the median income in the area. This time last year, the number was 150%.

If a person sells their home and the value goes up, some of the money will go back to the state. The exact amount varies based on the homeowner's income and is between 15% and 20%. This money will then be used to help people who are buying their first home in the future.

The CalHFA says that landlords who want to sell their homes even if the value hasn't gone up would have to pay back the initial 20% loan.

The program's website says that the California Dream For All program has helped 2,182 people buy their first homes. Five hundred fifty-five of these homeowners say they live in neighborhoods of color.