Online applications for the second round of Dream for All, California’s down payment assistance program, are set to begin accepting applications in three weeks.
According to the California Housing Finance Agency (CalHFA), applications will open at 8 a.m. on April 3 and close at 5 p.m. on April 29.
This time, the Dream for All program is budgeted at approximately $250 million to support 1,600 to 2,000 new applicants.
Funds can be used for down payments or closing costs up to 20 percent of the home’s price or appraised value, or up to $150,000, whichever is less.
Applicants for the second round of Dream for All must be first-time buyers whose parents are homeowners; first-time homebuyers who have not owned a home in the past seven years; have a credit score of 680 or higher; and have a debt-to-income ratio of 45% or less.
The annual income limit is 120% of the area median income, with limits varying by county. In Los Angeles County, it is $155,000; in Orange County, $202,000; in San Diego County, $185,000; in Riverside County, $149,000; and in Ventura County, $195,000.
“The Dream for All program provides a loan of up to 20 percent of the purchase price of a home,” said CalHFA spokesperson Eric Johnson, “and approximately 20 percent of the home’s appreciation must be repaid to the state of California when the home is refinanced, sold, or transferred.”
First rolled out last year, Dream for All was overwhelmingly popular, but it was criticized for still failing to close racial and geographic homeownership gaps. This year, authorities changed the application process from a first-come, first-served system to a lottery and tightened eligibility requirements, including lowering the median income.
“With the change to a lottery system, it is more advantageous to prepare properly, such as carefully filling out the documents and completing the necessary training within the application period,” said Jee Lee, President of the Shalom Center. Winners will receive a voucher in May, which must be used to purchase a home within 60 days, he added.
In the three weeks leading up to the start of the online application, experts advised borrowers to speak with a lender that offers the Dream for All program, prepare a lender pre-approval letter, and take two mandatory educational courses.
BY EUNYOUNG LEE, HOONSIK WOO [lee.eunyoung6@koreadaily.com]
