When most people think of the American Dream, they picture a nice suburban home with a little white picket fence and a lush manicured yard. But that dream is getting further and further from reality for a lot of us. In an effort to make homeownership in California more attainable, last year lawmakers introduced a new home loan program for first-time home buyers called Dream For All.
However, that dream stopped short for many when the program offered by the California Housing Finance Agency had to be halted only 11 days after launching due to funds running out. As it turns out those precious homeownership dreams came true for only a select few – primarily white, non-Latino, and living in the Sacramento area. So this time round, they’re recalibrating. Instead of handing out loans on a first-come first-served basis, qualified applicants will be chosen through a lottery run by the state. The requirements to qualify for the Dream For All program have also been tightened. Instead of simply requiring that applicants themselves be non-homeowners, it’s now mandatory that they have parents who are also non-homeowners.
The second round of the Dream For All program isn’t open to aspiring homeowners just yet. So there’s still time to start gathering paperwork, improve your credit score, and talk with participating lenders before the program starts accepting applications in the first week of April. Start the first step of your homeownership journey by applying for a prequalification letter from one of the approved lenders participating in the program. Check the list of approved lenders in the Dream For All program at the website here. After all the prequalified applicants have submitted their letter, the California Housing Finance Agency will hold a lottery to determine who will ultimately receive the home loan. For even more information, check out the California Housing Finance Agency’s website.