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As housing costs continue to soar and economic uncertainty deepens, California officials and housing advocates say a state-backed down payment assistance program is offering a rare opening for first-generation homebuyers, particularly in long-underserved immigrant and ethnic minority communities.

At a recent American Community Media briefing, speakers from the California Housing Finance Agency (CalHFA), housing counselors, real estate professionals, and program beneficiaries outlined how the California Dream for All Shared Appreciation Loan Program is helping qualified buyers overcome one of the biggest barriers to homeownership: the down payment.

“This program is a bright spot,” said Sandy Close, founder of American Community Media, noting that it comes at a time when affordability concerns are pushing homeownership further out of reach for many Californians. “It plants the seed for intergenerational wealth and changes real lives.”

How the Program Works

The Dream for All program provides eligible buyers with a loan of up to 20 percent of a home’s purchase price, which can be used toward down payment and closing costs. In exchange, the state recovers its original investment plus 20 percent of the home’s appreciation when the property is sold.

For example, a buyer purchasing a US$500,000 home could receive up to US$100,000 in assistance, reducing their mortgage payments by financing only US$400,000. According to an independent CalMatters survey cited during the briefing, this structure can save buyers an average of US$1,000 per month.

Applications for the next round will open February 24 and close March 16, 2026, with funding expected to support between 1,500 and 2,000 households statewide. Vouchers are distributed through a randomized selection process, giving applicants an equal chance regardless of when they apply during the window.

Who Qualifies

CalHFA defines a first-generation homebuyer as someone who has not owned a home in the past seven years and whose parents do not currently own a home in the U.S. The definition also includes individuals who grew up in foster care or never had access to generational wealth.

“Homeownership is where so much of a family’s wealth is built and passed on,” said Eric Johnson, information officer at CalHFA. “Yet entire communities have been frozen out of that opportunity.”

Johnson pointed to stark disparities, noting that Black homeownership rates are lower today than they were in 1968, when the Fair Housing Act was passed. “This program won’t fix everything,” he said, “but it makes an incremental, meaningful change.”

Income limits vary by county and are considered moderate rather than low-income thresholds. In Los Angeles County, for example, the cap is roughly US$148,000, while some Bay Area counties exceed US$200,000.

Community Perspectives: Down Payments, Not Desire, Are the Barrier

Housing counselors and real estate professionals speaking at the briefing emphasized that many renters already demonstrate the ability to carry a mortgage, often paying US$3,500 to US$4,000 a month in rent, but lack the upfront savings to buy.

“That’s the disconnect,” said Shonta Clark, a CalHFA lender and housing counselor based in Southern California. “My clients can afford the payment. What they don’t have is the US$50,000 or US$100,000 down payment.”

Clark described helping buyers purchase homes with less than US$2,000 out of pocket, combining Dream for All with other CalHFA and local assistance programs. She urged prospective buyers not to be discouraged by initial rejections. “If one person tells you no,” she said, “go to the next one. You will find a yes.”

Latino, Asian, and Immigrant Communities Face Unique Challenges

Several speakers highlighted how housing barriers play out differently across communities.

Imelda Manzo, a real estate broker serving primarily Latino buyers in Southern California, said affordability pressures are forcing many families to leave Los Angeles County for Riverside or San Bernardino counties or to live in multigenerational households.

“The biggest challenge I see is not credit or income,” Manzo said. “It’s the down payment.” She credited CalHFA programs with helping mortgage-ready families finally cross the threshold into ownership.

Willie Lee, Homeownership Program Director at the Shalom Center, emphasized language barriers, lack of familiarity with the U.S. mortgage system, and limited culturally competent counseling. “Many families can afford the monthly cost,” Lee said, “but they cannot save fast enough while paying rent.”

He called for more multilingual outreach and trusted community-based education to ensure eligible families know the program exists and understand how shared appreciation works.

From Homelessness to Homeownership

One of the most powerful moments of the briefing came from Tiffany DuVernay-Smith, a housing advocate who shared her personal journey from homelessness to homeownership through Dream for All.

“I had every barrier people are naming in the chat,” she said. “And it still happened for me.”

DuVernay-Smith described initially ignoring program emails, doubting that homeownership was possible. After being selected through the lottery and spending time improving her credit, she and her husband ultimately qualified for a US$725,000 purchase. “The answer will never be yes if you don’t apply,” she said.

Looking Ahead

CalHFA officials emphasized that the program is not a quick fix but part of a longer pathway that includes homebuyer education, credit counseling, and financial preparation.
“The best time to start,” Johnson said, “is now.”

For advocates and community leaders, the stakes extend beyond individual buyers. As Sandy Close concluded, each successful applicant represents not just a household stabilized but a generational shift toward equity in a state where homeownership has long been out of reach for many.