$300 million in seed funding for CalHFA’s “Dream For All” program is gone less than two weeks after it launched. The program is expected to help 2,300 first-time homebuyers.

In these times, double down — on your skills, on your knowledge, on you. Join us August 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. Get your ticket now for the best price.

A shared appreciation loan program that was created to provide down payments for first-time homebuyers in California has proved so popular that it’s run out of funding less than two weeks after launch.

The California Housing Finance Agency (CalHFA) launched the Dream For All Shared Appreciation Loan Program on Monday, March 27 — nearly two years after state lawmakers empowered the California State Treasurer’s Office to develop the program.

On Friday, CalHFA put out a bulletin alerting lenders that all of the program’s seed funds could be fully committed as soon as April 10. All loans must be rate-locked before the funds are committed, and no later than 3 p.m. April 12, 2023 — whichever comes first, the bulletin said.

On Monday, a CalHFA spokesperson told Inman that the program did in fact ran out of money on Friday.

“The $300 million in Dream For All funding currently available to CalHFA is expected to help more than 2,300 low- and moderate-income Californians purchase their first homes,” the agency said in a statement. “CalHFA is extremely proud of this successful program and pleased to make such a profound difference in the lives of so many Californians who have achieved the dream of homeownership.”

The Dream for All shared appreciation loan program provides loans for down payments that homebuyers don’t have to repay until they refinance or sell their home. Instead of paying interest on the second mortgage, borrowers repay the original balance plus a share of the appreciation in the value of their home.

Example of shared appreciation loan. Source: CalHFA presentation

If the Dream for All fund provides a loan for 20 percent of the home purchase price, the homeowner pays back the original loan plus 20 percent of any appreciation in the home’s value. So the effective interest rate on a shared appreciation loan is equal to the average annual appreciation in the home’s value.

Authorized by California lawmakers in 2021 through the passage of AB 140, the Dream for All program was officially established and funded in the 2022-23 state budget. The revolving loan program is expected to evolve over time to be self-sustaining utilizing private investments.

Editor’s note: This story has been updated to note that the Dream For All Shared Appreciation Loan Program ran out of funds on Friday, April 7, according to a CalHFA spokesperson. 

Get Inman’s Extra Credit Newsletter delivered right to your inbox. A weekly roundup of all the biggest news in the world of mortgages and closings delivered every Wednesday. Click here to subscribe.

Email Matt Carter

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription