CALIFORNIA’S DREAM FOR ALL  

If you’re reading this and you are NOT in California, you may want to pay attention to these guidelines. Similar programs could pop up in your state soon.

The Dream for All program is exclusive to home buyers in California. Below are quick points you need to know:

To qualify for a CalHFA Conventional loan program, all borrowers, including co-borrowers, must reside in the home and meet the definition of a first-time homebuyer.

A first-time homebuyer is defined as a borrower who has not had an ownership interest in any principal residence or resided in the home owned by a spouse during the previous three years.

Non-occupant co-borrowers/co-signers are not allowed

All borrowers must occupy the property as their primary residence within sixty (60) days of closing

The minimum credit score is 680 for borrowers with income greater than the HomeReady 80% AMI LI income limit

The minimum credit score is 660 for borrowers with income less than or equal to HomeReady 80% AMI LI income limit

Two educational courses are required, they will be linked below

Borrower(s) with no credit score are not permitted

Non-traditional credit is not accepted

All borrowers must meet the minimum representative credit score requirement. The middle score of the lowest-scoring borrower should be used to determine eligibility.

The max debt ratio is 50.00%, for borrowers with credit scores greater than or equal to 700 and 45.00%, for borrowers with credit scores between 680− 699

The property must be defined as a one-unit property

Multiple accessory units are not permitted, one ADU/granny unit is allowed

All rental income would be included when calculating income, see income limits below

Be either a citizen or other national of the United States, or a “Qualified Alien” as defined at 8 U.S.C. § 1641

Single-wide manufactured homes are not eligible, max debt ratio for double-wide manufactured homes will be 45%

The maximum first mortgage loan amount cannot exceed the current Fannie Mae conforming loan limit.

The interest rates are set by CalHFA, you can’t shop for better rates

CalHFA requires that all first-time homebuyers obtain a one-year home warranty protection policy. (Not required on new construction)

May be used for closing cost and/or down payment assistance, cannot be used to pay off any debt.

Refinancing: During the life of the Shared Appreciation loan, CalHFA will allow borrowers to refinance the first mortgage loan into a single limited cash-out refinance (as defined in the Fannie Mae Selling Guide) without requiring immediate repayment of the Shared Appreciation loan one time, and one time only, so long as you also comply with CalHFA’s re-subordination policy

For more information, book a call or reply to this email.