With housing costs in many areas of California through the roof and continued high-interest rates, buying a home can be daunting. That is especially true for first-time buyers and buyers with low and moderate incomes. With this new program, California Housing Finance Agency aims to make buying a home within reach for more home buyers. However, funds are limited! The state plans to provide just $300 million in payments to help 2,300 first-time buyers.

"The down payment is a hurdle for a lot of people,” spokesperson Eric Johnson said. “They may have the money to make the monthly payment, but they don't have $100,000 saved up in the bank. That means they are stuck renting."

What is a "shared appreciation" loan?

Unlike other CalFHA programs, this money does not become a grant, but like the name suggests, is a "shared appreciation" loan program that must be repaid. The state will give first-time buyers 20% of the home's cost to help with the down payment. When the homeowner then sells the house, the state gets 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 buyer.

Who is eligible?

While you must meet several eligibility requirements the program is very simple.

• Be a first-time homebuyer. See the definition of a first-time homebuyer.
• Occupy the property as a primary residence; non-occupant co-borrowers are not allowed. 
• CalHFA borrowers must complete two levels of homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization. 
• Meet CalHFA income limits for this program.

What kind of homes are available?

• Be a single-family, one-unit residence, including approved condominium/PUDs
• Guest houses, granny units and in-law quarters may be eligible 
• Manufactured housing is permitted
• Condominiums must meet the guidelines of the first mortgage* 

*In the case of conflicting guidelines, the lender must follow the more restrictive.

We're here to help you get started!

Connect with us and we're happy to make sure you understand the program, and are starting off in the right direction. We can also help you to find your home!