Los Angeles Real Estate Report

The Dream of Homeownership Is Still Within Reach in Los Angeles

After more than three decades helping buyers and sellers navigate the Los Angeles real estate market, I can tell you firsthand: the number one barrier for first-time buyers in this city is the down payment. Housing prices here are among the highest in the nation, and saving up 20% while paying rent can feel impossible. That's why I was genuinely excited when the California Housing Finance Agency (CalHFA) launched the Dream For All Shared Appreciation Loan Program — a creative, meaningful solution designed to get first-time homebuyers into homes they can actually afford. If you're exploring the Los Angeles market for the first time, our [first-time buyer resources](/buyers-resources) are a great place to start understanding what's available to you.

Dream For All Shared Appreciation Loan: A Path to Homeownership in Los Angeles

How the Dream For All Program Works

The Dream For All Shared Appreciation Loan Program provides first-time homebuyers with a loan for up to 20% of the home purchase price, which can be applied toward your down payment and/or closing costs. It's offered in conjunction with the Dream For All Conventional first mortgage through CalHFA. Here's the key distinction: this isn't a grant — it's a shared appreciation loan. That means you repay the original loan amount when you sell or transfer the home, plus a share of any appreciation in the home's value. It's more complex than a traditional mortgage, but for many buyers it's the difference between owning and continuing to rent.

Understanding Shared Appreciation: Two Examples

CalHFA has laid out two scenarios to help borrowers understand the repayment structure.

**Example 1: CalHFA Income Homebuyer** — Dream For All provides a loan for 20% of the purchase price. When the homeowner sells, they repay the original loan amount plus 20% of any appreciation in the home's value.

**Example 2: Borrower Income at or Below 80% AMI (Area Median Income)** — These buyers receive a reduced appreciation share ratio of 0.75:1. That means the program's appreciation share equals 0.75 times the original loan amount as a percentage of the home's value. In practical terms, Dream For All still provides 20% of the purchase price, but the homeowner only repays the original loan amount plus 15% of any appreciation. This reduced share makes the program even more accessible for lower-income first-time buyers in Los Angeles.

Eligibility Requirements You Need to Know

To qualify for the Dream For All Shared Appreciation Loan Program, you must be a first-time homebuyer, occupy the property as your primary residence, and meet CalHFA income limits. Non-occupant co-borrowers are not permitted.

The property itself must be a single-family, one-unit residence, including approved condominiums and PUDs. Guest houses, granny units, and in-law quarters may also qualify, and manufactured housing is permitted. Condominiums must meet the first mortgage guidelines.

One critical requirement: borrowers must complete two levels of homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization. This can be done online or in-person through a HUD-approved Housing Counseling Agency. CalHFA considers this education essential to long-term homeowner success — and frankly, I agree. Only one occupying first-time borrower per transaction is required to complete the course.

Interest Rates and How to Apply

The interest rate on the Dream For All loan will vary based on your financial circumstances, lender fees, and other factors, so there's no one-size-fits-all answer. I always recommend connecting with a CalHFA-approved loan officer for an accurate rate quote tailored to your situation.

To apply, contact a CalHFA-approved and trained loan officer in Los Angeles. Have your pay stubs, bank statements, employment history, and previous tax returns ready — these documents will be needed to move the process forward. If you're a homeowner considering selling to a first-time buyer or navigating any aspect of an LA transaction, our [seller resources](/sellers-resources) can help you understand the current landscape.

Key Takeaways About the Dream For All Program

• →The program provides up to 20% of the home purchase price for down payment and/or closing cost assistance.
• →Repayment includes the original loan amount plus a share of the home's appreciation — 20% for standard income borrowers, 15% for those at or below 80% AMI.
• →Borrowers must be first-time homebuyers, occupy the home as a primary residence, and meet CalHFA income limits.
• →Two levels of homebuyer education counseling are required before closing.
• →Work with a CalHFA-approved loan officer in Los Angeles for accurate rate quotes and to begin the application process.

Frequently Asked Questions

Thinking about buying your first home in Los Angeles? Let's talk about how programs like Dream For All can open doors for you. With 33 years of experience in the LA market, I'm here to guide you every step of the way.