For many first-time home buyers, the biggest obstacle to purchasing a home isn’t the monthly payment — it’s the down payment.
California’s Dream For All Shared Appreciation Loan Program was designed specifically to address that challenge. If you’re planning to buy your first home in Sacramento County or San Joaquin County, understanding how this program works could open doors that may have previously felt out of reach.
This guide breaks down what the program is, who it’s for, and what buyers in our local market should consider.
Fill out the form below to see if this program is a good fit for you!
What Is the California Dream For All Program?
The Dream For All Program is a state-backed down payment assistance program administered through CalHFA (California Housing Finance Agency).
Unlike traditional assistance programs, Dream For All operates through a lottery-style drawing system. Eligible buyers enter the drawing, and selected participants receive funds that can be used toward their down payment.
Key features of the program include:
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Assistance of up to 20% of the home’s purchase price
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No monthly payments on the assistance portion
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Repayment occurs when the home is sold, refinanced, or transferred
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Uses a shared appreciation model
Rather than functioning as a grant, this is a shared appreciation loan. That means the state participates in a portion of the home’s future appreciation in exchange for providing the upfront assistance.
Why This Program Matters for First-Time Buyers
In markets like Sacramento and San Joaquin counties, home prices have risen significantly over the past decade. Even buyers with strong income and stable employment often struggle to accumulate a sufficient down payment.
This program can help buyers:
✔ Enter the market sooner
✔ Reduce upfront cash requirements
✔ Potentially avoid private mortgage insurance (PMI)
✔ Preserve savings for reserves or home expenses
For many households, timing is critical. Waiting years to save for a larger down payment can sometimes mean chasing a moving target as home values continue to change.
Who Is the Program Designed For?
Dream For All is generally intended for:
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First-time home buyers
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First-generation home buyers (buyers whose parents did not own a home)
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Buyers purchasing a primary residence
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Buyers meeting income and eligibility guidelines
Eligibility requirements vary and are periodically updated. Factors such as household income, credit profile, and homebuyer education typically play a role.
Because guidelines can change, working with professionals familiar with current program criteria is essential.
How the Lottery-Style Drawing Works
One of the most unique aspects of Dream For All is its reservation system.
Rather than being continuously available, the program opens during specific funding rounds. Eligible buyers submit entries, and selections are made through a drawing process.
Important considerations:
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Entry does not guarantee selection
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Funding rounds can fill quickly
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Preparation ahead of time is crucial
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Buyers often need financing pre-approval
This structure makes planning especially important. Buyers who are financially prepared when the program opens tend to be in the strongest position.
What Buyers in Sacramento & San Joaquin Counties Should Know
While the program is statewide, local market conditions matter.
1. Home Prices & Competition
Both counties present different dynamics:
Sacramento County
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Larger inventory
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Broad range of price points
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Competitive entry-level segments
San Joaquin County
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Strong demand for affordability
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Popular relocation destination
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Rapidly evolving pricing trends
Down payment assistance can enhance purchasing power, but buyers should still be realistic about budget, neighborhood selection, and competition.
2. Shared Appreciation Structure
Because Dream For All is not free money, buyers should clearly understand:
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How repayment works
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What percentage of appreciation is shared
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Long-term financial implications
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Exit scenarios (sale, refinance)
For many buyers, the trade-off is well worth it. For others, alternative strategies may make more sense depending on future plans.
3. Financing Strategy
Dream For All is typically paired with a CalHFA first mortgage. Buyers should review:
✔ Interest rate structure
✔ Monthly payment impact
✔ Loan flexibility
✔ Refinance considerations
A program that helps with the down payment must still align with sustainable monthly housing costs.
Common Questions First-Time Buyers Ask
“Is this a grant?”
No. It is a shared appreciation loan.
“Are there monthly payments?”
No monthly payments on the assistance portion.
“Do I have to repay it?”
Yes, upon sale, refinance, or transfer.
“Can this make buying more affordable?”
For many buyers, yes — especially those limited by upfront cash.
Is the Dream For All Program Right for You?
There is no universal answer.
This program can be an excellent fit for buyers who:
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Have stable income
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Meet eligibility requirements
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Want to accelerate homeownership
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Understand shared appreciation mechanics
It may be less ideal for buyers who:
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Plan short-term ownership
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Expect rapid refinancing
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Prefer traditional equity structures
A thoughtful evaluation is always recommended.
Final Thoughts for Local Buyers
Programs like Dream For All are reshaping how first-time buyers approach homeownership in California.
For buyers in Sacramento County and San Joaquin County, the key advantage is awareness and preparation. Many opportunities are missed simply because buyers hear about programs too late.
Understanding your options early allows for smarter financial planning and stronger positioning when programs become available.
Thinking About Buying Your First Home?
If you’re curious whether this program — or other assistance options — might align with your situation, gathering information early can make a significant difference.
Even if Dream For All isn’t the perfect fit, there are often multiple paths to homeownership worth exploring.