California giving away up to $150,000 for first-time homebuyers
LOS ANGELES - Good news if you're looking to purchase your first home in California, but need a little extra assistance with that down payment.
The California Dream For All Shared Appreciation loan program, which was first introduced last year and was so popular that it ran out of the $300 million set aside to help first-time homebuyers in just 11 days, has relaunched, the state announced.
Made possible by the California Housing Finance Agency, the program gives eligible individuals 20% of the home's cost to help with the down payment.
When the homeowner sells the house, the state will get a portion back (15% or 20% of any appreciation of the home depending on your income) and, in turn, uses that money to help out the next first-time homebuyer.
If your home hasn't grown in value but you still want to sell, you'd be responsible for paying back the original 20% loan, according to the CalHFA.
Applications are being accepted now through April 29 at 5 p.m. PST. A randomized drawing will select registrants who will receive the loans - this will not be first come, first served.
You are eligible to apply if you've never owned a home. One borrower must be a first-generation homebuyer, while all borrowers must be first-time homebuyers. Income must meet CalHFA Income Limits for the county you are purchasing in.
Prospective homebuyers must work with state-approved lenders and must meet certain income requirements, which vary by county - but are down to 120% of area median income. Last year, it was 150%.
The first phase of the California Dream For All program helped 2,182 new homeowners purchase a home with 55% self-identifying as belonging to communities of color, according to the program's website.
To learn more about the program, tap or click here.