The CalHFA Dream For All Shared Appreciation Loan Program is out.

It’s a way for buyers to purchase a home with no money down. The State of California has thrown $300 million towards the program, and they will provide a 20% down payment and share the future appreciation.

It’s not a dream for all – it’s only for those who meet the criteria:

  • San Diego County income under $211,000.
  • 680+ credit score.
  • Debt-to-income ratio under 45%.
  • Haven’t owned a home in the last three years.
  • 8-hour online seminar.
  • Seller can pay the buyer’s closing costs.

Here are the FAQs:

It will be a useful program for homebuyers who don’t strive to buy a quality property – because those are being snapped up by the affluent. I had two different cases this week where my buyers got into bidding wars – 14 offers on a Escondido house under a million, and 8 offers on a mid-$2,000,000 house in La Jolla. Both offered 5% over the list price and lost.

Those who pre-qualify for the Dream For All program and submit an offer on a quality home will likely be shown the back of the line by the listing agent, who will have the more-traditional buyers to choose from.

To paraphrase what George said, the Dream For All may sound good, but you have to be asleep to believe it.

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