Last year the State of California launched a "Dream for All" program aimed at helping first-time buyers get into the housing market with down payment assistance. The initial basket of money was $300 million and it ran out in 11 days. This year the program is being funded with $250 million. The program loans qualified buyers up to 20 percent of the purchase price, or $150,000, whichever is lower. The zero percent loan will then be paid back, plus a share of the home's appreciation, when it sells in the future.
Unlike last year which was first come, first served, this year the California Housing Finance Agency made changes aimed at reaching a more diverse group of borrowers across the state by holding a lottery for the funds.
A statement from the department says the program will focus on first-generation buyers. Officials estimate is between 1,700 and 2,000 lottery winners will receive vouchers and will then have 60 days to spend it on a home. If you are interested reach out to your favorite lender, or call me for some recommendations, to prepare your application for submission for the lottery in April.