California pauses homebuyer loan program after it runs out of money
LOS ANGELES - A program recently launched to help first-time homebuyers in California is temporarily paused after so many people applied, the state apparently ran out of the allotted money.
The new initiative called the California Dream For All Shared Appreciation loan program was introduced March 27 and had set aside $300 million to help 2,300 first-time homebuyers with down payments. That money ran out in 11 days, officials said.
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.
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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.
It's unclear when the program will begin taking applications again. Those who are interested can sign up for CalHFA updates on the agency’s website.