🏡 California Dream For All Program (2026)
Down Payment Assistance Program for First-Time Homebuyers in California

 

 

 

 

 

The State of California operates the “California Dream For All” program to help first-time homebuyers purchase a home even in areas where housing prices are very high. This program provides assistance with the down payment needed to buy a home.

 

The program is administered by the California Housing Finance Agency (CalHFA) and is especially helpful for people who have stable income but limited savings.

 

 

Unlike typical down payment assistance programs, the California Dream For All program has a unique application process. Many people miss the opportunity simply because they are not familiar with the application steps, so it is important to understand the process outlined below.

 

 

 

📅 2026 Application Period

February 24, 2026 – March 16, 2026

Online applications are accepted only during this period.

After the application window closes, participants are selected through a Lottery system.

 

 

This program is administered by California Housing Finance Agency (CalHFA). Applications are not submitted directly to the government; instead, they must be processed through an approved mortgage lender.  We have several approved mortgage lenders.

 

 

Below is an overview of the program and the application process. If you are interested or need assistance, please contact us before the application deadline.

 

 

 

 

1. What is the California Dream For All Program?

 

The Dream For All program provides down payment assistance of up to 20% of the home price (maximum $150,000) for homebuyers.

However, unlike traditional grants, this program uses a Shared Appreciation Loan structure.

This means:

 

 

  • The state provides funds for the down payment

  • When the home is sold or refinanced, a portion of the home’s appreciation is shared with the state

 

 

 

 

2. Assistance Amount

 

The Dream For All program typically provides up to 20% of the home purchase price, up to $150,000.

 

 

Example

Home price: $700,000

State assistance: $140,000 (20%)

The buyer can purchase the home with much less cash upfront.

The funds may be used for:

      • Down payment

      • Part of the closing costs

 

 

 

 

 

3. Major Benefits

 

✔ Reduced Down Payment Burden

Because home prices in California are very high, the down payment can be a major obstacle. This program significantly reduces the initial cash required

to buy a home.

 

 

✔ No Monthly Payment

      • 0% interest

      • No monthly payment

 

Repayment is only required when:

      • The home is sold

      • The home is refinanced

      • The mortgage is fully paid off

 

 

 

4. Shared Appreciation

 

If the home increases in value, the homeowner shares a portion of the appreciation with the state.

 

 

Example

Purchase price: $700,000
State assistance: $140,000

Later sold for $900,000

Profit = $200,000

Repayment to the state:

      • Original assistance: $140,000

      • Portion of appreciation (example: 20%)

Total repayment = $140,000 + portion of appreciation

 

 

 

5. Eligibility Requirements

 

To qualify for the Dream For All program, applicants must meet the following requirements:

 

 

✔ First-time homebuyer
✔ California resident
✔ Income must be below the county income limit
✔ Minimum credit score around 660
✔ Must use an approved CalHFA loan program

In addition, First-Generation Homebuyer requirements may apply.

This means:

      • The applicant’s parents did not own a home, or

      • The parents owned a home but meet certain qualifying conditions.

 

 

 

6. Application Process

 

The Dream For All program is not applied for directly with the government. Applications must be submitted through an approved lender.

 

 

 

1️⃣ Consultation with a CalHFA-Approved Lender

The first step is to speak with a CalHFA-approved lender.

Only approved lenders can process Dream For All applications.

The lender will review:

      • Income

      • Credit score

      • Debt-to-Income ratio (DTI)

      • Available down payment funds

      • Estimated home purchase price

At this stage, the lender determines the approximate home price range you can afford.

 

 

 

2️⃣ Mortgage Pre-Approval

The next step is to obtain a mortgage pre-approval.

The lender will review documents such as:

      • Last 2 years W-2 or tax returns

      • Recent pay stubs

      • Bank statements

      • Identification

      • Social Security Number

      • Credit report

After reviewing the documents, the lender issues a Pre-Approval Letter, which is required to apply for Dream For All.

 

 

 

3️⃣ Complete Homebuyer Education Course

Applicants must complete a Homebuyer Education Course before applying.

Course topics include:

      • The home buying process

      • Mortgage basics

      • Shared Appreciation Loan explanation

      • Understanding closing costs

The course usually takes 1–8 hours and can be completed online.

 

 

 

4️⃣ Apply for the Dream For All Program

After completing the education course, applicants can submit an online application through the Dream For All portal.

Required information includes:

      • Pre-Approval Letter

      • Personal information

      • Address

      • Income details

      • Parents’ homeownership information (for First-Generation verification)

A key requirement is the First-Generation Homebuyer qualification.

This typically means:

      • Parents did not own a home, or

      • Parents owned a home but meet certain qualifying conditions.

 

 

 

5️⃣ Lottery Selection

Because program funding is limited, participants are selected through a lottery system.

After the application period ends:

      • All applicants are entered into a pool

      • The state conducts a random lottery

      • Selected applicants receive a Dream For All Voucher

 

 

 

6️⃣ Voucher Issuance

If selected, applicants receive a Down Payment Assistance Voucher.

Voucher details:

      • Provides a specific amount of down payment assistance

      • Usually valid for about 90 days

During this time, the buyer must find a home.

 

 

 

7️⃣ Find a Home and Sign Purchase Contract

After receiving the voucher, the buyer works with a real estate agent to find a home.

Steps include:

      • Searching for homes with a realtor

      • Submitting an offer

      • Signing a Purchase Agreement

 

 

 

8️⃣ Mortgage Approval and Closing

Once a purchase contract is signed, the lender proceeds with the final mortgage approval process.

This includes:

      • Appraisal

      • Underwriting review

      • Loan approval

      • Closing disclosure

      • Escrow closing

At closing, the Dream For All funds are applied toward the down payment.

 

 

 

Summary of the Application Process

 

1️⃣ Consult with approved lender
2️⃣ Obtain mortgage pre-approval
3️⃣ Complete homebuyer education
4️⃣ Apply for Dream For All program
5️⃣ Lottery selection
6️⃣ Receive voucher
7️⃣ Purchase a home
8️⃣ Loan approval and closing

 

 

Important Tips

 

The Dream For All program is extremely popular.

For example:

      • The 2023 program ran out of funds in about two weeks

      • Tens of thousands of applicants applied

Therefore, it is important to:

✔ Speak with a lender early
✔ Prepare your pre-approval in advance
✔ Complete the education course beforehand

This preparation will allow you to move quickly if you are selected.

 

 

 

 

Terry Kwon

Contact: (631) 624-4480

Email: terry@milestonepointinc.com

 

Funding Director at Milestone Point, Inc.

Licensed Mortgage Originator at Loan Factory

NMLS #2620208

Loan Factory NMLS #320841