Time’s ticking for Californians aiming to buy their first home with a little financial boost this year. The California Dream for All program, a hit since its launch last year, is set for a comeback on April 3. It offers first-time buyers a chance to shave up to 20% off their down payment costs, with grants reaching up to $150,000.
This opportunity isn’t endless though; applications are entering a lottery system until May.
To qualify, you shouldn’t currently own a home, or if you did, it should have been sold three or more years ago. Investment property owners need not apply, as the program is designed for those intending to live in the home they purchase.
Income limits do apply, based on county standards, typically capped at 120% of the area’s median income. Plus, one of the buyers needs to be buying a home for the first time in their family.
Last year, over two thousand hopeful homeowners benefited from the program, with a significant portion representing communities of color.
However, there’s a catch. If you sell your home, you’ll need to share a slice of the profit with the program. If the property’s value hasn’t increased, you’re still on the hook for the original 20% assistance.
Sammy Lyon, a real estate broker in Los Angeles, expressed frustration over last year’s quick depletion of the program’s funds.
The process left many potential buyers, who could have significantly benefited, empty-handed.
According to Lyon, the program’s design allowed some who might not have needed the assistance to secure funds, sidelining those in more critical need of support.
The median home sale price in California is soaring, with last year’s figures hitting $785,600, up by 11.4% from the previous year.
California is giving up to $150,000 to help first-time homebuyers. DETAILS: https://t.co/nfooenrOJR
— KRON4 News (@kron4news) April 8, 2024
This stark increase underscores the challenge many face in bridging the gap between wages and home prices. For some, familial help isn’t a viable option, despite previous generations owning homes, due to the widening financial divide.
Lyon praises the program for igniting the dream of homeownership among many and anticipates the new lottery system will distribute funds more equitably.
For residents in rapidly changing neighborhoods, owning a home is often the only way to avoid being priced out by surging rents. Whether considering a single-family home or a townhouse, this decision holds significant weight in securing stability amid economic fluctuations.
Homeownership, despite its challenges and compromises, like sharing future profits, represents a path to lasting community presence and building generational wealth.
I’m Tanner Murphy, a retired real estate agent from California, now writing for propertyescape.net. I simplify California’s complex real estate laws for readers, making it easier to understand and navigate the market.
