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Dream For All vs CalHFA Down Payment Assistance

What Is the Best Alternative to the Dream For All Program in California?

If you’ve been researching down payment assistance programs in California, you’ve likely come across the Dream For All program and other CalHFA options.

One of the biggest questions I get from buyers in Sacramento and Roseville is:

“Which one is better?”

I’m Amy DeBusk, a Branch Manager with over 25 years of experience, and the answer depends on more than just how much assistance you receive. Many buyers also compare this with other down payment assistance options available across California.

While Dream For All can offer significantly more upfront help, it comes with limitations, including availability and shared appreciation.

Other CalHFA programs may offer less assistance, but they provide a more predictable and flexible path to homeownership.

Let’s break down the real differences so you can decide what makes the most sense for your situation.

The Best Alternatives for Homebuyers in Roseville, Sacramento, and Placer County

Right now across Roseville, Sacramento, and Placer County, many first time homebuyers are rushing to submit their applications for the California Dream For All program.

Phones are ringing. Applications are being submitted. Buyers are refreshing their email hoping to receive the approval notice that feels like a golden ticket.

And many buyers are asking the same question.

“What happens if I do not get Dream For All? Is my chance to buy a home gone?”

The answer is simple.

Absolutely not.

This is exactly why we always build what we call a smarter Plan B from the start, so you are not relying on one program to move forward.

At Amy DeBusk Home Loans, powered by Loan Depot, we work with many buyers who initially hoped to secure Dream For All funding. For every one of those clients, we run a side by side comparison showing what their purchase strategy looks like with Dream For All and without it.

What many buyers discover is surprising.

There are still powerful strategies available that can make homeownership possible.

One of the strongest alternatives is CalHFA Down Payment Assistance, specifically the MyHome program combined with CalHFA ZIP assistance.

Let’s break down how these programs compare.

What Was the Dream For All Program?

The California Dream For All program was created to help first time homebuyers overcome one of the biggest challenges in purchasing a home: saving for a down payment.

For many buyers, the monthly mortgage payment is manageable, but accumulating tens of thousands of dollars upfront for a down payment can delay homeownership for years. Dream For All was designed to remove that barrier by providing significant down payment assistance through a unique shared appreciation loan.

Instead of requiring buyers to save a large lump sum, the program allowed qualified borrowers to receive assistance from the state to cover part of their down payment. In exchange, the state receives a share of the home’s future appreciation when the property is sold or refinanced.

This structure allowed many buyers to enter the housing market sooner while keeping their monthly payments manageable. For a deeper breakdown of how the program works and what to consider, you can explore the full structure and guidelines.

How the Shared Appreciation Loan Works

Dream For All provided a shared appreciation loan that could cover up to 20% of the home’s purchase price. This assistance functioned as a silent second loan with no required monthly payments.

Because the loan covered a significant portion of the down payment, buyers could qualify for a larger home purchase than they might have otherwise. Many borrowers gained an additional $75,000 to $100,000 in purchasing power, depending on the loan scenario and local home prices.

The assistance remained in place until a triggering event occurred, such as:

Selling the home
Refinancing the first mortgage
Transferring ownership

At that point, the homeowner repays the original assistance amount plus a share of the home’s appreciation.

The Trade Off: Shared Appreciation

Dream For All reduced the upfront cash needed to buy a home, but it came with one key trade off.

Because the state helped fund the down payment, it also receives a share of the home’s appreciation when the property is sold or refinanced.

For many buyers, this was still a worthwhile exchange because it allowed them to purchase a home sooner instead of waiting years to save for a traditional down payment.

Is the Dream For All Program Available Right Now?

The Dream For All program is not continuously available.

In 2026, the application window opened in late February and closed in mid-March, with applicants selected through a lottery system. (California Association of Realtors)

This means that even if you qualify, there is no guarantee of receiving the funds.

Because of this, many buyers need to consider alternative options rather than waiting.

The CalHFA Alternative: MyHome Down Payment Assistance

For buyers in Sacramento and Placer County looking for an alternative to Dream For All, one of the most practical options is the CalHFA MyHome Down Payment Assistance program.

This program helps first time homebuyers cover part of their down payment through a deferred second mortgage. Instead of requiring monthly payments, the assistance sits behind the primary mortgage and is only repaid later when the home is sold, refinanced, or the loan is paid off.

While the assistance amount is smaller than what Dream For All offered, the structure of the MyHome program still provides meaningful support for buyers who need help getting into their first home.

FHA Loans Allow Larger Seller Credits

One of the biggest advantages of pairing FHA loans with the MyHome Down Payment Assistance program is the ability to negotiate larger seller credits, which can significantly reduce the cash needed to close.

Seller credits are funds provided by the home seller to help cover a buyer’s closing costs, prepaid expenses, or even interest rate buydowns. The amount a seller can contribute depends on the loan program being used.

FHA loans allow buyers to receive much higher seller concessions compared to Conventional financing.

Conventional loans allow seller credits up to 3% of the purchase price for most first time buyers.
FHA loans allow seller credits up to 6% of the purchase price.

This difference can have a major impact on a buyer’s upfront costs.

What Is a Temporary Rate Buydown?

A strategy many buyers in Sacramento and Roseville are using right now is called a temporary rate buydown.

This strategy reduces the buyer’s mortgage interest rate during the first few years of the loan, lowering the monthly payment early in the loan term. It can be especially helpful for buyers who want more breathing room in their budget while adjusting to homeownership.

One of the most common structures is a 2-1 buydown, where the interest rate is reduced for the first two years before returning to the full note rate in year three.

The cost of the buydown is typically paid using seller credits negotiated during the home purchase. Because FHA loans allow seller credits up to 6% of the purchase price, buyers often have more flexibility to structure these payment reducing strategies.

What Is a Seller Credit?

A seller credit is when the home seller agrees to contribute money toward the buyer’s closing costs as part of the purchase agreement.

Instead of reducing the home’s purchase price, the seller provides funds that help cover expenses related to the buyer’s financing. This can significantly reduce the amount of cash the buyer needs to bring to closing.

Seller credits can be used for several different costs associated with purchasing a home.

Loan closing costs
Escrow and title fees
Prepaid property taxes and homeowners insurance
Discount points to lower the interest rate
Temporary interest rate buydowns

Because these costs can add up quickly, seller credits are often used as a negotiation tool to help buyers manage upfront expenses.

How Seller Credits Are Structured in an Offer

Seller credits are typically built directly into the purchase contract during negotiations.

Instead of lowering the sales price, the buyer may offer a slightly higher purchase price while requesting a credit back from the seller to cover closing costs.

In this structure, the seller still receives approximately the same net proceeds while the buyer receives financial assistance toward closing costs or a temporary rate buydown.

This type of strategy is commonly used in Sacramento and Placer County real estate transactions, especially when buyers want to reduce their upfront cash requirements while keeping the deal attractive for the seller.

CalHFA Income Limits in Sacramento and Placer County

Many homebuyers assume they earn too much to qualify for down payment assistance programs. In reality, CalHFA income limits are often much higher than buyers expect, which means many middle income households may still be eligible.

These programs are designed to support a broad range of buyers, including professionals, dual income households, and growing families who may have solid income but still need help with the upfront costs of purchasing a home.

Below are the approximate 2026 CalHFA moderate income limits for several Northern California counties.

Because these limits are relatively high, many households earning well into the six figure range may still qualify for assistance.

This is one reason programs like CalHFA MyHome Down Payment Assistance remain popular among buyers in Sacramento, Roseville, Rocklin, and surrounding communities, where home prices have continued to rise but assistance programs can still help reduce the upfront cash needed to purchase a home.

Dream For All vs CalHFA MyHome

Both programs were designed to help buyers overcome the challenge of saving for a down payment, but they work very differently. Each option has its own advantages and considerations depending on a buyer’s goals, financing strategy, and long term plans.

Below is a side by side overview of how the two programs compare.

The Bottom Line for Buyers in Roseville and Sacramento

Dream For All is an exciting program, and many buyers are hoping to secure funding.

But not receiving Dream For All funding does not mean the dream of homeownership is over.

There are still powerful financing strategies available that allow buyers to purchase a home with minimal out of pocket costs.

Often, the key is working with a lender who understands how to structure these programs properly.

What I’m Seeing in Sacramento and Placer County

In the Sacramento and Roseville markets, many buyers are drawn to Dream For All because of the larger assistance amount.

However, because the program is limited and competitive, I often help buyers move forward using CalHFA programs instead.

In many cases, these buyers are able to purchase sooner rather than waiting for uncertain funding.

The Strategy Most Buyers Don’t Realize

Many buyers assume they have to choose one program or the other.

In reality, the smartest approach is often to prepare for both.

I frequently help buyers:

Register for Dream For All when it opens
While also preparing a backup strategy using CalHFA programs

This way, they are ready no matter what happens.

Frequently Asked Questions About CalHFA Down Payment Assistance and Dream For All

1. What is the minimum credit score required for CalHFA down payment assistance?

Credit score requirements depend on the loan program used with the CalHFA assistance.

For FHA loans using CalHFA MyHome assistance, the minimum credit score is typically 640.

For Conventional loans using CalHFA assistance, the minimum credit score is generally 680.

However, credit score is only one part of the overall approval process. Lenders also review your income, debt to income ratio, employment stability, and financial reserves.

At Amy DeBusk Home Loans, we review the full financial picture to determine which program offers the best path to homeownership.

2. Do I have to be a first time homebuyer to use CalHFA programs?

Yes, most CalHFA down payment assistance programs require the borrower to be a first time homebuyer.

A first time buyer is defined as someone who has not owned a primary residence within the past three years.

There are also exceptions for certain targeted areas and some specialized programs.

Many buyers are surprised to learn they qualify as a first time buyer again after renting for several years.

3. How much down payment assistance does CalHFA provide?

The amount of assistance depends on the loan program used.

With FHA loans, the CalHFA MyHome program can provide up to 3.5 percent of the purchase price toward the down payment.

With Conventional loans, the program can provide up to 3 percent of the purchase price.

In addition, buyers may also qualify for the CalHFA ZIP program, which provides assistance for closing costs.

When these programs are combined with seller credits, many buyers are able to purchase a home with very little out of pocket.

4. How does the Dream For All program differ from CalHFA down payment assistance?

The Dream For All program provides larger down payment assistance, often up to 20 percent of the purchase price.

However, Dream For All is structured as a shared appreciation loan. When the home is sold or refinanced, the state receives a portion of the home’s appreciation.

CalHFA down payment assistance programs do not require shared appreciation.

This means homeowners keep 100 percent of their home’s equity growth over time.

While Dream For All may increase purchasing power, CalHFA programs allow buyers to keep all future appreciation.

5. What are the income limits for CalHFA programs in Sacramento and Placer County?

CalHFA programs are designed for low to moderate income households, but the limits are often much higher than many buyers expect.

For 2026, income limits in Northern California counties are approximately:

Sacramento County: Up to about $239,000

Placer County: Up to about $239,000

El Dorado County: Up to about $239,000

Yolo County: Up to about $269,000

This means many households earning well over $100,000 annually may still qualify for down payment assistance.

6. Can seller credits be used with CalHFA loans?

Yes. Seller credits are commonly used with CalHFA loans.

A seller credit is when the seller agrees to contribute money toward the buyer’s closing costs as part of the purchase agreement.

These funds can be used for:

Loan closing costs
• Escrow and title fees
• Prepaid property taxes and insurance
• Temporary rate buydowns

Seller credits can dramatically reduce the amount of cash a buyer needs to complete the purchase.

7. What is a temporary interest rate buydown?

A temporary interest rate buydown allows the buyer’s interest rate to be reduced during the first few years of the loan.

One common structure is called a 2-1 buydown.

Example:

Loan interest rate: 6.5 percent
Year 1 rate: 4.5 percent
Year 2 rate: 5.5 percent
Year 3 through 30: 6.5 percent

The cost of the buydown is typically funded through seller credits negotiated in the purchase contract.

This strategy helps buyers manage their monthly payments while they settle into homeownership.

8. How much less home will I qualify for without Dream For All?

Because Dream For All can provide up to 20 percent down payment assistance, it can increase purchasing power.

Buyers who do not receive Dream For All funding may qualify for approximately $75,000 to $100,000 less in purchase price when using other assistance programs.

However, CalHFA programs still offer powerful advantages, including seller credits, temporary rate buydowns, and full ownership of future home appreciation.

For many buyers, these strategies still make homeownership achievable.