CalHFA Dream For All Shared Appreciation Loan: How It Works

I’m Michael DiVita (DRE #01372066 | NMLS #241655), owner of DiVita Home Finance (DRE #01818285 | NMLS #323700) in Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. I’m known as a creative mortgage broker: when a bank says no, I find the lender and the loan structure that can say yes. Call (800) 239-1103.

CalHFA’s Dream For All Shared Appreciation Loan gives first-generation, first-time California homebuyers up to 20% of the purchase price (maximum $150,000) toward the down payment and closing costs. There’s no monthly payment and no interest. Instead, when you sell, refinance or pay off the first mortgage, you repay the original amount plus a share of the home’s appreciation — up to 20%, or up to 15% for lower-income households. It’s offered in funded rounds with a random drawing; the 2026 application window ran February 24 – March 16, 2026.

How the Shared Appreciation Loan Works

Dream For All is a silent second mortgage paired with a CalHFA Dream For All Conventional first mortgage. You don’t make payments on it. When the loan comes due, you repay:

• The original amount you borrowed, plus
• A share of the appreciation in the home’s value. For borrowers above 80% of area median income, the share is 1:1 with the assistance percentage, up to 20% of the appreciation. For borrowers at or below 80% of area median income, it’s 0.75:1, up to 15%.

The appreciation share is capped at 2.5 times the original loan amount. If the home doesn’t appreciate, you repay only what you borrowed.

Example 1: $700,000 purchase, 20% assistance

From the $900,000 sale you’d also pay off the remaining first mortgage balance (less than $560,000 after years of payments) and selling costs; the rest is your equity.

Example 2: $1,000,000 purchase, capped assistance

20% of $1,000,000 is $200,000, but the program caps assistance at $150,000 — which is 15% of the price. With the 1:1 ratio, CalHFA’s appreciation share is 15%. If the home later sells for $1,200,000, you’d repay $150,000 plus 15% of the $200,000 gain ($30,000), for $180,000 total. The rest of the down payment and closing costs would come from your own funds, gifts, or other assistance.

2026 Program Details at a Glance

Who Qualifies

First-time homebuyer

Every borrower must be a first-time homebuyer under CalHFA’s definition: no ownership interest in a principal residence (and not living in a home owned by a spouse) during the past three years. Someone who owned a home a decade ago can still qualify on this test.

First-generation homebuyer

At least one borrower must also be a first-generation homebuyer. Under CalHFA’s program terms, that’s someone who hasn’t been on title, held an ownership interest in, or been named on a mortgage for a home within the past seven years and whose parents don’t currently own a home (or didn’t own one at the time of their death) — or someone who has at any time been placed in foster care or institutional care.

Income limits

Limits are set by county. In announcing the 2026 round, CalHFA gave examples of about $148,000 in Del Norte County, $168,000 in Los Angeles County and $309,000 in Santa Clara County. I’ll pull the current limit for your county and household before you apply.

Credit and debt ratios

CalHFA doesn’t set these on the Dream For All loan itself; they follow the Dream For All Conventional first mortgage guidelines and the lender’s requirements. Plan on needing solid credit and a debt-to-income ratio that fits conventional underwriting.

How the Application and Drawing Work

1. Get pre-approved first. The application requires a pre-approval letter from a CalHFA-approved lender, a government ID, and information about your parents for the first-generation test.
2. Apply during the window. Selection is a randomized drawing, not first-come, first-served, so applying on the last day counts the same as the first.
3. Selection and voucher. Selected applicants receive a voucher (conditional approval). In 2026, CalHFA said recipients would have 90 days to shop for a home; CalHFA posted on May 20, 2026 that the next round of vouchers had been released.
4. Contract and close. The Dream For All loan closes together with the CalHFA first mortgage.

Demand has been heavy. In the 2024 round, CalHFA reported more than 18,000 completed applications and issued 1,700 initial vouchers.

Dream For All vs. MyHome Assistance

If you aren’t selected, MyHome, GSFA Platinum and local city or county programs are the usual backups. My down payment assistance guide covers all of them.

Is Sharing Appreciation Worth It?

It depends on your alternatives. The trade-off is simple: a much smaller down payment and a smaller first mortgage (and, with 20% down, no mortgage insurance) today, in exchange for a slice of future gains. If the realistic alternative is renting for years while you save, many buyers come out ahead. If you already have most of a down payment, or you expect to refinance soon, the math is less compelling — refinancing the first mortgage normally triggers repayment, although CalHFA offers a Dream For All refinance option for eligible borrowers. I’ll run your scenario side by side before you commit.

Frequently Asked Questions

How much can I get from Dream For All?

Up to 20% of the purchase price or appraised value, whichever is less, capped at $150,000, for down payment and closing costs.

How much appreciation do I have to share?

The share matches your assistance percentage up to 20% of the appreciation. Households at or below 80% of area median income share at a 0.75 ratio, up to 15%. The appreciation share is capped at 2.5 times the original loan amount, and if the home doesn’t appreciate you repay only the original amount.

Can I use Dream For All with an FHA loan?

No. Dream For All must be paired with CalHFA’s Dream For All Conventional first mortgage. CalHFA’s MyHome Assistance is the program that works with a CalHFA FHA first mortgage.

Do I have to be a first-generation homebuyer?

Yes, at least one borrower must meet CalHFA’s first-generation definition, and every borrower must be a first-time homebuyer (no ownership in the past three years).

When is the next Dream For All round?

The 2026 application window ran February 24 – March 16, 2026, and future rounds depend on state funding and repaid loans. The best preparation is a completed pre-approval so you can apply as soon as a new window opens.

What if I’m not selected?

You can still buy with other assistance, such as CalHFA MyHome (up to 3.5% with CalHFA FHA), GSFA Platinum, local programs, or gift funds.

Getting Ready

I offer CalHFA programs to buyers across California, including Marin County and San Francisco. The best thing you can do now is get fully pre-approved, finish homebuyer education, and have your documents organized so you can move quickly when a round opens or your voucher arrives.