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My spouse wants to apply but i own a condo in only my name frm before marriage. Would that disqualify her? And the income limit is minimum or maximum?And is it combined like for each household? Thanks.
This program is great! I think it is good for those who do not have any assets and are disadvantaged. Parents owning homes is already an advantage compared to those who do not.
But what if you don’t know how to maintain a home? How could this affect first home house buyers? Would it lead to more homes being turned over due to the access the average person now has ? There’s always a catch with ca bills. And I can see the average person getting screwed over. Also with more potential home buyers what is that going to do to the housing economy? Will prices go up? Usually with more demand means competitive pricing.
Typical woke Cali response Not all parents in Cali can help their kids or want to . They may have a big mortgage and may need it for medical care, It will also lead to higher home prices and foreclosures , Cali is also considering this program for illegal immigrants God I hope Cali falls into the ocean soon or separates from the rest of the nation
What I don’t like about it is that it does not matter if you have a 660 credit score or a 800 credit score, my interest rate will be the same. Which is 6.75%. Considering I worked so hard to get my credit score perfect. That kinda killed it for me. I almost feel that it would be better to put 5% down and get a better interest rate and keep the money that I sell my home for and not give up to 20% of the appreciation of home. Please correct me if I’m wrong. Thank you for this informative information.
Funny enough the rate is about what you’d get putting your own money down with an 800 FICO so it’s more a benefit to lower ficos than punishing higher ones since that’s effectively what you’d get anyways
By the way, I was just reading that only one of the buyers has to be first generation. I might be incorrect. But that would work for someone like me, who has a father who has a home, but my husband‘s parents do not own a home.
I get it, it’s not meant for people who don’t make a lot of money, it’s meant for people who grew up in poverty. Like I did. I don’t know who my dad is and my mom is a drug addict forget owning a home she don’t even have a place of her own. I pretty much grew up in foster care because of that. When you grow up in an environment like that, it’s a miracle that I’m even alive let alone owning a home. This would set me up for success and potentially change the trajectory of my family’s future and provide opportunities for not only my future but my kids as well.
So it's OK to punishes my children and grandchildren because I struggled and sacrificed to get into a small house that I almost lost in the 2008 recession. Totally bull s_hit!
@@eugeneparker9333 I’m just saying that I get it, I’m not on welfare but I get why people are on it. Just like financial aid. Your children can get that and not have pay it back and learn how to set themselves up for success.
Buy = cash. Mortgage = financing. Buying a house takes 1 day. Financing takes 30 years. The sale price of ANY house only applies to those buying in cash not financing. Mathematical facts = true.
I was counting on this program being an option in the next year or so. The new requirement to be a first generation homebuyer disqualifies me. I'm devastated 💔 Lots of us had boomer parents who took advantage of favorable conditions to get a house back in the 70s, but who were unwilling to provide the same help to their kids. This is just wrong.
You were counting on this program being an option but now that you don’t qualify it’s just wrong. Do you realize how messed up that is for someone who didn’t qualify to begin with!? This communist approach is what California seems to deserve.
@MR-G-Rod if you don’t qualify in general then that means you aren’t ready to buy. If you look at the terms It’s actually incredibly capitalist but sure
@@CatonDelRosario It can also mean you make over $155k a year. When houses are $800k, it’s still dang hard to come up with 20% down payment ($160k). Capitalism is about having a dollar that is a system of measuring the same way a foot is a system of measurement. A foot has to be 12inches to build a house. A dollar was 26.73 grams (.90% silver, 10% copper) in 1837. There was also no income tax. Look up some Mises, Rothbard, Menger and see what I mean. Communism ends bad for everyone but it seams that’s what California deserves.
The income limit list,we are living right now or where we were are going to buy? Example, we are living contra costa county and we are going to buy at different county, than which county income limit that we must match? Second refinance, does it mean we do not have to pay back on the first refinance right?
It would be based off of where you are buying! You don’t have to pay it back on the first refinance but it can only be to lower your rate so you can’t take any extra cash out when you refi
The first gen rule is interesting in that while I kinda understand the theory behind it, but in practice is kinda ridiculous. Cause what if you’re estranged from your parents? I’m not personally, but I know there are people out there who are who even if their parents own a home, the likelihood of them inheriting anything is really low. Yet they are still barred from this. I 100% understand the applicant needs to be a first time buyer, but I’m not sure the first gen rule is fair in many situations.
first generation home buyer rule is kinda of lame. Your parents were able to buy a home when normal working people could so now you have to wait 30+ years for them to die to "potentially" inherit the a home?
@@CatonDelRosario I would qualify if not for this and it really sucks because even when I inherit my parent's house I'll have to split that with my siblings. I'm sure this applies to many other people as well.
@u2571man101 yeah it’s a story I’ve heard a lot in the conversations ive had lately. Or the parent owns the home but has no intention of giving them anything. Unfortunately there’s not much I can do but communicate what the rules are
I actually think it's fair. Regardless, your parents owning a home still predicts your assets and security long-term. Those who have that disadvantage will now be able to provide themselves and their kids with a home.
Thank you! Closing costs are typically much higher with down payment assistance loans since lenders have to charge their fees upfront vs being paid by the state for doing the program. You can expect 1.5% to 2% for the average lender fees for these kinds of loans
There isn’t really a “lowest income” that can qualify since it depends largely on the price of the home. You’d still need to be able to afford the monthly payment for the mortgage so for example a $4000/month payment you’d need to make a minimum of $8000/month for 50% debt to income in order to qualify assuming you had zero debts
Is there any benefits (with respect to the loan covers 80% of purchase that I am getting approved for and not the silent DFA loan) to get preapproval from multiple loan officers (perhaps lower fees, interests, etc.)?
Since that loan is done with CalHFA and they set the rates there’s no real benefit for shopping LO’s but it is important who you pick since experience with these programs really does matter. Fees will be pretty standard too
Hello, following.Just got the news of what you just went over today…..you knew a month ago? So many questions ? How about Credit score limits.?Before I start dreaming😂
HI. Thank you for your video-It's highly informative. Question, my parents are paying mortgage does that mean they are homeowners even when they haven't finished paying the house? Hope my question makes sense. Thank you
If you get a voucher and have 3 Month to get house under contract. Would this work for new construction “we’re a home won’t be completed until 3-4 months. Is there a time limit before the voucher expires ?
It expires after 90 days I believe and then once you’re under contract another 60 days to close so I’d say really not much past August for a closing date
So a 750k home is the absolute max that this program would allow you to put in for? What if the home is worth 1.1 million? Would the program allow you to apply for the 1.1M home?
So you can use this to buy a $1M + home with the caveat that you still only get $150k You could add an additional 5% down of your own funds max so effectively still getting to 20% down (15% + 5%) on a $1M property
I wanna apply and try my luck in this program but i dont know where to start😅. Im a nurse and still working out for my down payment for my future house purchase.
I am a first time buyer and I recently made an offer on a mew construction home. Because the home wasn’t built on time, I pulled out of escrow. My question is am I still considered a first time buyer? Would I still qualify for this program?
Hi! Since you didn’t actually buy the home, you are still a first time buyer :) You can schedule a time to chat on my calendar here: calendly.com/catondelrosario/dream-for-all
Hi Great Video. I am not clear about the refinance part. Since interest rates are high is there no ARM provided by Calhfa? Am I stuck with High interest rates for 30 years? When I refinance too can I go to some outside bank like Boa for a ARM or a lower rate?
You can do a one time refinance to lower your rate without re paying the shared appreciation loan. Any time after that you’d have to pay it back. You can go to any bank to do the refinance but I am not 100% sure if CalHFA will subordinate to an ARM
@@CatonDelRosario Thanks for the reply. How can I find out such details. Because refinancing to a fixed interest rate when interest rates are so high doesn't make sense
Hello! In the last video you mentioned that we'd only be able to add on 5% of a down-payment on top of the $150,000 or 20% the DFA loan puts down. Is that still true?
Right before the pandemic we purchased a home (under our names as a secondary home)for my parents (bc they were in the verged of being homeless). Other than that we do not own any other property. Do we disqualify?
Hi Sir Caton thanks for this very informative video! What if the house that I plan to purchase down payment is more than 150000$ say 900000$ house can I still use the program and just makeup the difference? Thanks!
I'm trying to apply for the dream for all, but as you mentioned, the housing price is pretty high, especially in my area. I was just wondering if I could include some of my own money in the downpayment to be able to buy a more expensive house?
This is what prevents me from applying, the goal is to have a lower monthly payment and a home even in the 500k is still around 3k a month which is still pretty steep for me at least
@gabrielsanchez4207 rates are definitely high right now but when they drop prices will likely go up kinda evening things out. Unfortunately if you can manage to buy it now with something like a 1-0 or 2-1 buydown it can help you get a lower rate to start and then refinance later on. But if not I totally get it too, the market is tough
It’s a good place to start but it would effectively be whatever your current pay is. So if you had a big raise or switched jobs year over year it could be very different than what your W2’s show
What if we are looking into a new construction but we won’t close until November? As long as we sign and get under contract to purchase the home we’re good?
You stated coming out of pocket but isn’t that what the program is for, so that you don’t have to come out of pocket for the down payment and closing costs? So even if a co-signer has a VA loan they still cannot assist correct?
It sounds very prejudiced to those individuals that were born int a working class family. While your parents may own(pay a mortgage) on a small home, you may never inherit enough to purchase a home for yourself. Likely, by the time you do you'll be at the end of your working years.
I am a first time homebuyer but not a first generation home buyer. My wife is a first gen home buyer but doesn't make any income after giving birth to our 2 year old. Would the two of us be able to apply and meet the first gen homebuyer requirement even if she isn't working at the moment?
She can still be on the loan since she would be likely on title with you as long as she meets the other requirements so yes that would still work even if she’s not using any income to qualify :)
Hey! Great, helpful video. Thank you. When we spoke to a loan officer regarding this loan they stated part of it could be used to cover closing costs, but then since it would take your down payment under 20% you'd have to pay mortgage insurance. Does this sound right to you? Also, is it possible to agree to a lower interest rate or is it going to be set at that rate no matter what (regardless of the applicants credit scores, etc.)?
Hey Anthony! Glad you got some value from it! That’s correct, going under 20% down would result in having to pay PMI but at like 15% down it’s likely negligible Unfortunately rates are set by CalHFA regardless of score, but if you can get a seller credit you can pair it with a temporary buydown! I have a great video that talks about how that works on my channel under 2-1 buydowns
same way we typically qualify for a homebuyer, so whatever your current salary/wage is. For self employed earners this would be an average of the last two years taxes.
What about if u already have 20% down-payment but u still need more down-payment just to be able to get ur monthly mortage where u can pay it ? Do I still qualify for more?
Question. If I get a pre approval letter using my own credit only. Is it possible to add an additional borrower during the voucher application process?
Thanks Man for the info, found your videos are highly educational Quick follow up question, Since Applicants must upload the CalHFA DFA Lender Pre-Approval letter completed by a CalHFA Approved Lender into the DFA pre-registration portal. Does that mean I have to find a specific lender that does Dream for All program within the CalHFA system?
It doesn’t seem worth it if you’re try to save money buying a house. Sure your monthly costs will be lower but your overall costs will be close to the same after paying back the loan plus 20% of the appreciation. Say you buy a 500k home with their 100k down payment. You sell the home in 5 years and owe 120k back after appreciation of your home value. That’s about the same you would pay after 5 years with a conventional loan plus you’re paying more in closing costs with the dream for all loan. I can only see it being worth it if your home depreciates in value but not by much. 😊
I mean you really only held onto the $100k, so you’re paying back $20k after 5 years. Compare it to putting 5% down for the same home. Difference in payments is about $40k for that 5 year span. $20k to save $40k seems like a no brainer to me
this is a question I'm getting a lot more lately. To be clear a CalHFA Approved Lender is in reference to the mortgage bank doing the loan, not necessarily the individual Loan Officer. CalHFA has a list of LO's that the LO's pay to be on, but other LO's, myself included, are not on that list but are partnered with a participating mortgage bank, in our case Sierra Pacific Mortgage :) So as long as your mortgage lender works with one of those approved mortgage banks to originate it, you are good to go!
To apply for this, what if I myself only make 26k per year excluding my partner (where not married & he’s not a citizen) would that mean I’d have to have like 700-800credit score ? 😅
You’d definitely still need to qualify for a mortgage so it’s less about your score but more your income in order to qualify still. Minimum score for this is 680
really great video and have great details. Quick Question, I usually file income taxes jointly with my spouse, do we need to file tax separately in order to meet the income limit for the person will be on the loan?
So I have a question regarding the parents part. When it says own a home does that mean they are done paying off the loan or still making payments toward the home?
My husband and bro in law loaned the home we live in now , if i do the loan to buy a new house this time, is it considered first time buyer? Or no since my husband already have a loan?
I can see this back firing so fast if they can’t afford a down payment then what makes you think they can then maintain that building? The state is going to make so much money via taxes off of this and no one will be helped.
I can’t speak for the rest of the industry but the clients I’ve spoken to all have money but not 20%. Minimum down for a home is 3-5% so this allows them to keep more of their money in their pocket for these exact kinds of things that can happen. Not to mention giving them a lower payment letting them continue to save money.
Yes! We are partnered to do these loans through Sierra Pacific Mortgage. If you’d like to get pre qualified you can schedule a time to chat on my calendar here: calendly.com/catondelrosario/dream-for-all
@jooyeolhan2452 you would need to get PreApproved prior to the lottery in April to make sure you have a PreApproval letter and know what your options are. Home buyer education will be required but since the voucher is good for 90 days you’ll have time to complete it before buying since one course is about $100 to do.
Yes this is so unfair. My dad died 30 years ago when my parents were home owners. My mom sold the home during the last housing boom and made a good profit and moved to a senior community. She lost her home when she was unable to work during a cancer diagnosis 15 years ago. She moved in with me. When she died 6 years ago she wasn't a homeowner. So....there is no family home but i still cant qualify for this program. It should be on a case by case basis.
People come from China and south America with Cash which make citizen chances to own a home is impossible.. cities like Arcadia some Asians rich men buy cash for their side chicks
Also need a 680 fico score and of course the income depending on where you’re trying to live that meets its requirements. The poll sucks too I guess. This is prob why the market hasn’t even crashed because of this program which is stupid. The market should have burned down by now
This program is not what is holding up the market lol About 2600 people got into it last year and maybe another 2000 this year 257k homes sold in all of CA in 2023 so barely over 1% of sales attributed to homes bought in a 9 day stretch in April. Market is being sustained by demand for single family housing not being met for the last 10 years. Until supply magically increases by another 1M units, housing isn’t going down any time soon.
@@CatonDelRosario it is definitely the reason. If it wasn’t for this dumb program it would have crashed. People bought which kept the marking going. If no one would have bought the market would have crashed. This saved the market it was a smart move to not let it crash for this reason. I guarantee you if this wasn’t out last year and this year the market would have fell apart. We’ll never know know
@@parslayergolf8769 the program ended after 9 days of being available last year. No one marketed it anymore after because funds were completely unavailable and no one was even sure if it would return this year. People were buying homes before the program was released, people continued buying homes after it was released because people want to buy homes in California. It's not some conspiracy. And this is literally just a California program. You're telling me every other state was somehow impacted by this? "I guess we'll never know" aka "I just made something up because the market hurt me so I'll blame this random thing instead of actually looking at the data"
@@CatonDelRosario whatever they had to offer after 9days bro kept up the market. I don’t know why you are commenting back. It’s math and common sense. The money was just enough to keep market value where it was and after the fact price margins sky rocketed. You can believe what you want bruv. But I feel it was the wrong move it helped with keeping the market from crashing
@ngce yeah I get that part too, a lot of people I’ve spoken with have situations with their parents that won’t really help them get a home in the future. It’s one part I hope they take a look at changing back in future rounds.
