California has relaunched its "Dream For All" program, a state lottery system designed to help first-time homebuyers with down payments. According to ABC7, the state is offering $250 million in assistance, and, as of Wednesday (April 3) the program is now accepting applications online.
The "Dream For All" program provides up to 20% of the purchase price for a down payment or closing costs, with a maximum limit of $150,000. The program is aimed at first-generation homebuyers and uses a lottery system to ensure an equitable distribution of loans.
Per Cal Matters, the program was so popular last year that it ran out of money in just 11 days. This year, the state hopes to avoid a mad scramble for the loans by replacing its original first-come, first-served model with a lottery. Homebuyers will have until April to find a state-approved lender and start working on an application. A lottery opens in early April, and buyers will have a month to submit their applications.
The state estimates that between 1,700 and 2,000 lucky lottery winners will receive vouchers that they'll then have 90 days to spend on a home. The loan will then be paid back, plus a share of the home's appreciation whenever it sells in the future.
Real estate agent Sarah Moore said that the program is a big help to first-time homebuyers, who often struggle to save enough for a down payment. "The resources are limited, they may be saddled with debt from school or other sources, so it is a very big challenge."
To sign up for the lottery, prospective homebuyers can go to calf.ca.gov.