🧮 CA Dream for All eligibility and repayment calculation tool: www.buywisemortgage.com/california-dream-for-all ✅ Start your pre-approval now - Dream For All, FHA, VA, Conv, Jumbo - www.videoask.com/f54r31fba ⏩ Is CA Dream For All A Ripoff - Get the Facts, See the Comparison - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-D-kzzk3d7Y4.html
Unfortunately, no. You need an updated pre-approval letter including the additional buyer. That way, when CalHFA reviews your application, they know that you and the co-borrower both meet all of the requirements of the program.
CalHFA has started taking applications. The first step is getting pre-approved, then you can submit your application to be considered for a voucher. You ABSOLUTELY DO NOT need to be under contract. You actually should NOT be under contract. Reach out if you have any questions!
That's my favorite compliment of the day! Glad the examples worked for you. Be on the lookout tomorrow, I have a new video comparing the cost of "shared appreciation" on this program to the interest costs on lower down FHA and conventional loans. And yes, manufactured or mobile are synonymous. They are eligible under the program assuming they were built after 1976, are on land you own and permanently attached to the foundation.
Great presentation. I wonder whether the applicants can have one spouse who never owned or the parent but the other spouse parent bought. Will they be allowed to buy?
Hi Betty...glad you found it helpful. For the first time buyer requirement, ALL borrowers must meet CalHFA's definition of a first time homebuyer - a borrower who has not had an ownership interest in any principal residence or resided in a home owned by a spouse during the past three years. For the first GENERATION buyer requirement, at least one borrower must meet the definition of a first-generation homebuyer. Will that work for your situation?
Hi! I’ve heard that credit score does not matter and seeing the question I see that they may be looking for a minimum of 680 score. Can you confirm please? Thanks and thanks for the video!
Great question....CalHFA absolutely has a minimum credit score. For Dream For All, 680 is the minimum. For all other CalHFA programs you need a 640. If you need help boosting that score, reach out and we can do a review and see what's possible.
How much does the loan percentage of 20% each year increase, 3%? If so, does it mean that at the end of 30 years, the debt would have increased too much!!!
Victor, go and watch the other video I did on the program. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-D-kzzk3d7Y4.htmlsi=lpH9IzJ6JfmAiFrc Dream For All is far and away the lowest cost approach to home ownership if you don’t have a substantial down payment of your own (more than 5%).
So it’s not just transfer or sale of home when we have to pay back 20%? What if we decide to pay off the loan earlier with extra payments a month? Do we still pay 20% downpay assistance back even if we don’t sell? And will we still be on hook for the appreciation when we sell if we pay off earlier? Thanks btw
No. There are multiple potential triggers including paying off the first mortgage over the 30 year term (or sooner), even if you don't sell the home. Paying off the loan doesn't eliminate the shared appreciation and my understanding is the shared appreciation is due at time of payoff, not pushed into the future when you sell the home (which may never happen if the home stays in the family after your passing). You do have the opportunity to refinance 1 time with no cash out, lower rate and improved terms only. But if rates were to drop again and you wanted to take advantage the assistance lien needs to be paid off, including shared appreciation to that point. Thanks for watching! Let me know if you have any additional questions or want to see if you are eligible.
thanks for the video . I was wondering . If i got selected and stood in house for a year and had to move for work "Might be a real possibility for me" would i be able to rent this property out to someone or would that trigger something ?
Hi Nick. You should be fine. Here is what CalHFA lists in the current handbook as events that will trigger repayment: • Transfer of title • Sale of the property • Payoff of the first loan • Payoff of the subordinate loan principal balance • Refinance of the first loan - see Refinance and Re-subordination section • The formal filing and recording of a Notice of Default (unless rescinded) Let me know if you have additional questions or would like to see what your options look like!
I am pretty certain you CANNOT rent the property out and you must live in it as your Primary Residence...your only option if you needed to move for work would be to sell it for a loss if you were upside down and still pay back the loan back to CalHFA.
I’m in San Mateo county. Does that mean I have to purchase in San Mateo county. For example, those are the income limits for people buying in that particular county or are those the income limits for residents already from that county?
Great question, the income limit that applies to your purchase is based on the county where the home is located. If you buy in San Mateo county, you follow that income limit. If you buy in San Diego county, you follow that limit. The only geographic location requirement is that all applicants must currently be California residents. You can buy in any county you would like as long as you are a CA resident. I hope this helps. Reach out if you have more questions.
@@joshlewisCMC okay great. I realized that was the case after watching a few more videos. Wife is a permanent resident and we would be able to use this for a few counties since we match all the criteria. Luckily, the exact counties we’d be looking for. Is there an option to add to the down payment, or is it strictly just the money you receive from CA to be used as the down payment?
@b_ryyeee That’s another good question. The state didn’t like people making large downpayments last year so 5% of your own funds is all that can be added to the down payment.
Yes. You only owe the original loan plus 20% of the appreciation. If you sell without any appreciation, nothing will be owed in addition to the original principal balance of the DFA lien.
There should be a shared DEPRECIATION as well, if the buyer loses money so should the state and eat the costs! If someone buys the house at 800k and they sell within 5 years and the house value drops to 750k instead of paying the 150k back the homeowner should only pay back 100k and account for the 50k loss. But I am sure the state does not want to lose money so the buyer will be on the hook for the full 20% down payment putting the buyer in a bad situation...this Dream For All seems more like a Dream for Cal HFA only 😂😂😂
Hi Cameron, you can refinance as soon and often as it makes financial sense. Most programs and lenders will require your loan officer to show the net tangible benefit that you are receiving from the refinance. As long as there is enough benefit, you are able to do the loan. Be on the lookout, I'm going to be doing an in-depth video on this in the near future. SORRY….I missed that you asked this question in relation to Dream For All…..with DFA, you can refinance 1 time for a lower rate only (no cash out). If rates were to drop further, you would need to pay of the DFA shared appreciation loan to take advantage….hope this helps.
Inventory at the affordable levels is a huge challenge right now in California. The Dream for All lottery system will at least prevent the massive rush we had last year when it was first come, first served so every eligible DFA buyer was making an offer on the same limited inventory. An agent we work with had 29 DFA offers in one weekend on a $300k listing last year. Now, lottery winners will get a voucher and have 90 days to find the right home without bidding against every other potential DFA recipient. Good luck!
The average cost of a home in California according to NARA is 788k let's just round that up to 800k. 20% of that is 160k but you only get 150k max with the DFA program so not quite the 20% that is needed to avoid PMI. So let's assume a conservative 5% appreciation over the next 5 years! That puts the value at 840k, you pay back the 150k + 8k in appreciation for a total payment of 158k...plus you still have to pay back the original loan amount of 650k. You end up with a measley 30k after all is said and done! Most of the profits are eaten up by paying back the original 20% down payment plus the appreciation so the real winner here is the state of California!!
This program is the closest thing to no brainer free money anyone will ever get. All mortgages have to be paid back. They're loans, not gifts. Bigger picture, DFA is NOT a reason for someone who is not considering buying a home right now to change their mind. For those that are wanting to buy, it's a great deal if you're one of the lucky few that get the funds. Now, your other comment on your tax money being spent, it most certainly is being invested in these folks homes but will be paid back with interest at some point in the future.
@@joshlewisCMC I have participated in much better Down Payment assistance programs that do NOT require you to pay back a penny, this is why I stated this program is not very good if you are able to come up with your own down payment even if its just 5 or 10% that is much better than having to use this. I think this would be a last resort type program for buyers who could not absolutely come up with anything. Have you heard of the Pathway to Purchase DPA? It gave buyers a 10% down payment that was gifted to them as long as they lived in the home for 5 years and then the lien would be removed. That was a good program.
That program is capped at $10k and has much lower income limits than CA DFA. California has very few options, and none come close to what this does in terms of qualifying and affordability due to the size of the assistance. The great news is, everyone gets to decide for themselves and there will be 10+ applicants for every available reservation.
Because you get 80% of the appreciation on the property over the time that you own it. You pay back the original loan amount, plus 20%. The remaining appreciation is yours.
What they don't tell you is regardless of whether the house goes up down or sideways the state doesn't care you are still on the hook for that 20%! If life happens and you NEED to sell within 5 years or so and the home did not appreciate much you will end up in the negative most likely but the state will get their cut!
@@jose09841 I mean it is a loan, not free money, I was curious as to how they’d handle the shared depreciation aspect to it. Thanks for supplying this answer, my suspicion is true they will get back what they put in.
There are no payments on the Dream For All Shared Appreciation 2nd mortgage. You repay the principal and shared appreciation when you hit a triggering event like selling the property or refinancing for the 2nd time. As for the other costs of home ownership, if you can’t pay cash for a home, you will pay your mortgage, property taxes, homeowners insurance, any HOA dues and maintenance.
I have a question, I am a first time homebuyer & my parents have never owned either, but my co sign (girlfriend) Her parents do own a home will I still qualify for this program?
Good news! The guidelines read “at least one borrower” must be a first generation homebuyer so you would still be eligible if you meet the remaining criteria. Let me know if you’d like to start the pre-approval process.
@calidreaming8119 - I only recommend using a co-signer if it's absolutely necessary. In the case of Dream for All, every borrower must occupy the residence so if you do use a co-signer, remember they need to live in the home with you. We look forward to helping you. Whenever you are ready to go, use this link to get started and schedule a consultation: www.videoask.com/f54r31fba
I recall when learning about other 1st time homeowner programs...the definitions that made you a 1st time home owner weren't as straightforward as one might expect. I.e. if you haven't had a home title in your name in x many years, you are reset as a 1st time. What is the 'first generation home owner' definition? Are there less known stipulations like my example that exist?
Per their website, CalHFA is a self-supported state agency that doesn't rely on taxpayers dollars for its operational costs but regularly administers various state and federal resources on behalf of the state. The Agency is able to use government bond issuance and benefits from a low cost of capital as a result.
