Program status — updated September 14, 2026. The 2026 Dream For All application window opened February 24 and closed March 16, 2026. CalHFA is not accepting new registrations right now, and a date for the next round has not been announced. If you want to be ready when it reopens, the work that matters happens before the window — see how to be ready below.
The California Dream For All Shared Appreciation Loan is the most generous down payment help in California — up to 20% of the purchase price, capped at $150,000, with no monthly payment. It is also the most widely misunderstood, because you pay back more than you borrowed.
This guide explains exactly how the program works, what triggers repayment (including two situations that surprise people), and what to do now that the 2026 window has closed. Every figure here is sourced to CalHFA directly.
What Dream For All Actually Is
Dream For All is a shared appreciation loan from the California Housing Finance Agency (CalHFA). It covers your down payment and closing costs. You make no monthly payments on it — the balance is deferred for the life of your first mortgage.
When you eventually sell, transfer, or pay off the home, you repay the original amount plus a share of however much the home went up in value. Those repayments recycle back into the fund for the next round of buyers.
That is the trade. You get into a house years earlier than you otherwise could. In exchange, CalHFA participates in your appreciation.
How much you can get
The maximum is up to $150,000 or 20% of the sales price or appraised value, whichever is less. The money can go toward your down payment, your closing costs, or a permanent interest rate buydown. It cannot be used to pay off other debt, and you cannot take cash back.
How Repayment Works
The share of appreciation you owe depends on your income:
| Your income | Appreciation share | On a 20% loan you owe |
|---|---|---|
| Above 80% AMI, up to CalHFA income limits | 1:1 | 20% of the appreciation |
| At or below 80% AMI | 0.75:1 | 15% of the appreciation |
Lower-income borrowers get a meaningfully better deal — a quarter less of the upside is owed back, and a lower interest rate on the first mortgage. Whether you qualify is determined using Fannie Mae’s HomeReady AMI lookup, not a self-estimate.
CalHFA’s own worked examples
These two examples are taken directly from CalHFA’s program FAQ, not recalculated by us.
Example 1 — borrower above 80% AMI
| Original sales price | $500,000 |
|---|---|
| Shared Appreciation Loan (20%) | $100,000 |
| Value at sale | $700,000 |
| Appreciation | $200,000 |
| CalHFA’s share (20%) | $40,000 |
| Total repaid | $140,000 |
Example 2 — borrower at or below 80% AMI
| Original sales price | $400,000 |
|---|---|
| Shared Appreciation Loan (20%) | $80,000 |
| Value at sale | $600,000 |
| Appreciation | $200,000 |
| 20% of appreciation | $40,000 |
| × 0.75 lower-income factor | $30,000 |
| Total repaid | $110,000 |
There is a cap — and it matters
This is the single most overlooked detail in the program. The most you will ever repay is 2.5 times the original loan amount. On a $100,000 Shared Appreciation Loan, total repayment is capped at $350,000 — the original $100,000 plus a maximum of $250,000 in appreciation.
In a market that runs hot for a decade, that cap is real protection. Most coverage of this program never mentions it.
And if the home doesn’t go up in value
You still owe the principal, but nothing more. If appreciation is zero or negative, no appreciation share is due. CalHFA shares the upside, not the downside.
What Triggers Repayment
The loan becomes due and payable at the earliest of any of these:
- Sale of the property
- Transfer of title
- Payoff of the first loan
- Payoff of the subordinate loan principal balance
- Refinance of the first loan
- The formal filing and recording of a Notice of Default (unless rescinded)
Two of those catch people out, and they are worth stating plainly.
Paying off your mortgage triggers it — even if you never move. If you diligently pay down your first mortgage and reach a zero balance while still living in the home, the Shared Appreciation Loan becomes due, appreciation included. Staying put does not defer it forever.
Refinancing triggers it. This effectively means a Dream For All borrower cannot casually refinance to chase a lower rate without dealing with the shared appreciation balance first. If rates drop sharply after you buy, that is a real constraint on your options. Check the program handbook for the specific refinance provisions before you assume anything.
You may make voluntary payments toward the principal. But be careful: payments apply to principal only and do not reduce the appreciation share — and paying the principal off in full triggers the appreciation repayment.
Who Qualifies
Every borrower must be a first-time homebuyer
Not one of you. All of you.
One borrower must be a first-generation homebuyer
This requirement was the major change for recent rounds, and the definition is specific. A first-generation homebuyer is someone who has not been on title, held an ownership interest, or been named on a mortgage for a home in the United States in the last 7 years, and whose parents (biological or adoptive) do not currently have an ownership interest in a U.S. home — or, if deceased, did not have one at the time of death. Anyone who has at any time been placed in foster care or institutional care also meets the definition.
Only one borrower has to meet it. The parent test is the part that disqualifies people unexpectedly, and it is worth checking carefully before you build a plan around this program.
One borrower must be a current California resident
Again, only one.
Income must be within CalHFA’s county limits
Limits vary widely by county — roughly $168,000 in Los Angeles County and about $309,000 in Santa Clara County, against roughly $148,000 in Del Norte County. These change, so check the current CalHFA income limits for the county you are buying in rather than trusting any figure you read on a blog, including this one.
Other structural requirements
- CLTV must be between 95.00% and 105.00%.
- It must be paired with a Dream For All Conventional first mortgage from CalHFA. It cannot be attached to any other first mortgage.
- MyHome Assistance cannot be combined with it. Other down payment assistance that meets Fannie Mae Community Second guidelines and sits subordinate to the Shared Appreciation Loan can be.
- Properties anywhere in the State of California may be eligible.
- Two rounds of homebuyer education are required: the standard counseling for the Dream For All Conventional first mortgage, plus a separate CalHFA course specific to shared appreciation loans. That second course is free and online only.
How the Voucher Lottery Works
Dream For All is no longer first come, first served. CalHFA moved to a randomized drawing: you register during the application window, and a random draw selects who receives a voucher. Registrants are notified as Voucher Issued, Waitlist, or Not Selected.
Refreshing the page at midnight on opening day does not help you. Being ready to use a voucher does.
For 2026, CalHFA expected to make $150 million to $200 million available, assisting approximately 2,000 households including buyers already on the waitlist. Applications ran February 24 to March 16, 2026.
Voucher holders get 90 days to find a home. In most California markets that is a tight clock — and it is the reason preparation beats speed.
What To Do Now That the Window Is Closed
The honest answer is that you cannot apply today. What you can do is remove every obstacle that would cost you time if you are drawn in the next round.
- Confirm the first-generation test now. It hinges on your parents’ ownership history, which can take real effort to establish. Finding out during a 90-day clock is too late.
- Get fully preapproved, not prequalified. A voucher with no financing behind it burns days you do not have.
- Complete the homebuyer education early. Both courses are required, one is free and online, and neither needs a voucher to start.
- Check your income against your county’s limit — and understand where you sit relative to 80% AMI, because that line changes both your interest rate and how much appreciation you owe back.
- Decide whether shared appreciation is actually right for you. For some buyers a conventional low-down-payment loan or a VA loan with no down payment at all is the better structure. That comparison is worth doing properly before the next window opens.
If you are a California teacher, nurse, first responder, veteran, or public employee, that last point matters more than most people realize — several programs you may qualify for are not shared appreciation loans and do not take a share of your equity. We will tell you plainly if one of those fits you better.
Frequently Asked Questions
Do I make monthly payments on the Dream For All loan?
No. Payments are deferred for the life of the first mortgage.
Do all borrowers have to be first-generation homebuyers?
No — only one. But all borrowers must be first-time homebuyers.
Can I use it for closing costs instead of a down payment?
Yes. It can be used for down payment, closing costs, or a permanent interest rate buydown. It cannot pay off debt, and no cash back is allowed.
What if my home loses value?
You repay the principal only. No appreciation is owed if appreciation is zero or negative.
Is there a limit on what I could owe?
Yes — repayment is capped at 2.5 times the original loan amount.
How is the appreciation actually measured?
On an open-market sale, the actual sales price. Otherwise, an appraised value obtained under the program’s terms, which may include an automated valuation model where the program documentation permits it.
Sources
Every figure on this page comes from CalHFA:
- CalHFA — California Dream For All Shared Appreciation Loan
- CalHFA — Dream For All Shared Appreciation Loan Program FAQ (PDF)
- CalHFA press release, January 16, 2026 — 2026 funding and application dates
- CalHFA — Income Limits
Program terms change between rounds. Confirm current requirements with CalHFA or a CalHFA-approved lender before making a financial decision. California Loans for Heroes is not affiliated with, endorsed by, or acting on behalf of CalHFA or any government agency.
Talk It Through With a Licensed Broker
Qualified Financial Inc. is a licensed California mortgage brokerage (CA DRE #02194854, NMLS #2439105). We can tell you whether you clear the first-generation test, where your income sits against your county limit and the 80% AMI line, and whether Dream For All is genuinely your best structure or whether another program serves you better.
Check your eligibility — no Social Security number, no credit pull, no obligation — or call (866) 374-4040.
Written by Jon Cohen — President & CEO, Qualified Financial Inc. · NMLS #207422 · CA DRE #01515546
Published: September 14, 2026
Figures on this page are checked against the agency that sets them — VA, HUD, FHFA and CalHFA. Program terms change; confirm current figures before making a financial decision. Think something here is wrong? Tell us and we will correct it.