Buying your first home in Valencia but worried about the down payment? You are not alone. Many first‑time and first‑generation buyers are eyeing California’s Dream For All program to bridge the gap at local price points. In this guide, you will learn how the program works, what it can cover in Valencia, clear examples at current prices, and a simple checklist to get ready fast. Let’s dive in.
What Dream For All covers in Valencia
Dream For All is a CalHFA shared appreciation loan that can provide up to 20% of your purchase price for down payment or closing costs, with payments deferred until you sell or refinance. You repay the original assistance plus a share of any home price appreciation at payoff. Review details in the official CalHFA handbook for accuracy and updates. See the program handbook.
CalHFA caps assistance at the lesser of 20% of the price or appraised value, up to $150,000. The appreciation share varies by income. Borrowers above 80% of area median income share up to 20% of appreciation. Borrowers at or below 80% AMI use a reduced share that equals up to 15% of appreciation. The program also caps the share owed at 2.5 times the original principal. Check the handbook’s rules.
CalHFA also requires the combined loan‑to‑value ratio (CLTV) to fall between 95% and 105%. If you plan to stack other assistance, seller credits, or a HELOC, this CLTV box can limit your structure. Your CalHFA‑approved lender will confirm if your plan fits.
A simple Valencia price example
Valencia market snapshots have shown a recent median around $814,000. See the Valencia market report.
- 20% of $814,000 is $162,800.
- The program’s max is $150,000, so you would not reach a full 20% down purely with Dream For All at this price.
- That leaves a $12,800 gap if your goal is a full 20% down to meet lender or PMI targets.
Many Valencia buyers will receive the program’s maximum $150,000 rather than a full 20% at median prices.
How repayment and appreciation sharing work
Payments on the Dream For All loan are deferred. You repay the principal plus the program’s share of appreciation when you sell, transfer title, pay off the first mortgage, or refinance under conditions that require payoff. Review repayment triggers.
- If you are above 80% AMI, you share up to 20% of appreciation.
- If you are at or below 80% AMI, you share a reduced amount that equals up to 15% of appreciation.
- CalHFA caps the appreciation share it can collect at 2.5 times the original Dream For All principal.
Work with your lender to model 3, 5, and 10‑year scenarios. Compare paying the loan off early versus deferring payoff until you sell or refinance.
Valencia costs to plan for
Property taxes in Los Angeles County start at 1% of assessed value, plus local bonds and assessments. Effective rates often range around 1.1% to 1.25%, and some neighborhoods have Mello‑Roos or CFD charges that increase taxes. Learn how California property taxes are calculated.
Valencia is a master‑planned area with many HOA‑governed villages. HOA dues are common and should be included in your monthly budget. Read more about Valencia’s community design.
For a feel of parcel‑level taxes and assessments, review an example property tax page and compare disclosures during escrow. See a Valencia parcel example.
Timing matters in a competitive market
In past rounds, CalHFA used a voucher process with a defined shopping window. CalHFA stated voucher recipients would have about 90 days to shop. That makes pre‑approval, education, and document readiness critical in a competitive environment. Review CalHFA’s voucher announcement.
To protect your voucher timeline, get pre‑approved with a CalHFA‑approved lender before you start touring homes, and keep your underwriting documents current.
Your readiness checklist
Confirm eligibility
- First‑time buyer status, first‑generation requirement for at least one borrower, California residency, and citizenship or qualified‑alien eligibility per CalHFA. Check eligibility in the handbook.
Talk to a CalHFA‑approved lender
- Get pre‑approved early. Your lender will confirm income calculations, minimum credit, PMI impact, and CLTV fit. Program lender requirement.
Complete required education
- Dream For All requires shared‑appreciation homebuyer education. Build time to finish it before you write offers. Education requirement.
Assemble your document packet
- Government ID, proof of California residence, recent pay stubs and tax returns, bank statements, and any items requested by the voucher portal or your lender. Voucher process context.
Budget beyond the down payment
- Include escrow and closing costs, HOA dues where applicable, and property taxes including any Mello‑Roos assessments. Tax overview resource.
Run side‑by‑side scenarios
- Example A: $750,000 price. 20% equals $150,000, so Dream For All can cover a full 20% at this price.
- Example B: $850,000 price. 20% equals $170,000, so the $150,000 cap leaves a $20,000 gap if you want a full 20% down.
- Compare what you pay now, your projected PMI if any, and what you might owe at payoff under different appreciation paths. See the handbook examples.
Local examples at a glance
Valencia median example
- Price: $814,000. 20% equals $162,800. Dream For All max is $150,000, so plan for a $12,800 difference if your target is a full 20%. Validate the latest Valencia median.
Santa Clarita citywide context
- Recent city medians have hovered around the high $700,000s to low $800,000s, which often push the 20% number near or above the cap. See the Santa Clarita snapshot.
Next steps
Stay current by checking CalHFA’s official program handbook and announcements before you apply or write offers. Review the program details here. If you want a fast, clear plan tailored to your Valencia price point, message our team to map out your numbers, timeline, and offer strategy. Spanish‑speaking support is available.
Ready to move from research to results? Connect with Maritza Arellano for a no‑pressure planning call.
FAQs
How Dream For All monthly payments work
- Payments on the shared‑appreciation loan are deferred, and you repay principal plus the program’s share of appreciation at sale, payoff, or certain refinances. Program rules
Dream For All appreciation share at payoff
- Above 80% AMI, you share up to 20% of appreciation; at or below 80% AMI, you share a reduced amount that equals up to 15%, with a cap of 2.5 times the original principal. Handbook details
Refinancing later with Dream For All
- Refinancing is allowed under specific rules, but some refinances trigger payoff or require re‑subordination, so coordinate with your CalHFA lender before relying on future refi plans. Refinance guidance
Voucher timing and offer strategy in Valencia
- CalHFA stated a 90‑day shopping window for voucher recipients in the 2024 round, so have pre‑approval, education, and documents completed before you start making offers. Voucher announcement
CLTV limits when stacking assistance
- Dream For All requires CLTV between 95% and 105%, which can limit stacking other assistance or credits beyond the program. See CLTV rules
