California housing program changes application guidelines

Monday, March 4, 2024
FRESNO, Calif. (KFSN) -- The latest Cal HFA Dream For All program has tightened its application guidelines.

It would provide a loan of up to 20% for a down payment and closing costs.

"You have to be a first-time home buyer, but the second thing is a first-time generational home buyer," says Sierra Pacific Mortgage Loan Officer Paul Salazar. "Meaning your parents cannot own a home. Again, your parents cannot own a home."

Salazar says s someone who may be in line to inherit a home would be disqualified from the consideration.

Again, you must be a first-time homebuyer, your parents can't own a home, and you must have good credit. Fresno County applicants, in this case, a couple, can't make more than $132,000 a year to qualify.

The program also urges applicants who have been foster kids to apply.

"The whole idea is to give people who haven't had the opportunity to have that generational wealth passed down to them through a house have the opportunity to get started on that now," said Eric Johnson with the California Housing Finance Agency.

Applicants must get pre-approved to be considered.

"I think the important thing is, don't lose hope. There's still a way to afford a home in California," said Johnson.

An online homebuyers course must also be completed.

"First, you're going to get a pre-approval letter from a lender," Salazar said. "Then, you're going to have to follow the guidelines to get into a portal."

Once you are in that portal, a background fact check will be conducted.

A state lottery will then determine who gets the loans.
If approved, applicants would repay that loan to the state when they sell or refinance their home.

The payment would also include 20% of the home's appreciation.

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