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Every family deserves the opportunity to build generational wealth, but with home prices increasing every year, the California Dream for All program is putting housing within reach of first-generation homebuyers and helping them build financial legacies.
Homeownership goes beyond creating a financial future, offering families stability and an environment that translates into better health and education outcomes to support more families in their quest to create generational wealth, experts say during a briefing held by Ethnic Media Services.
The California Housing Finance Agency (CalHFA) is launching the California Dream for All Shared Appreciation Loan Program, aimed at qualified residents who want to purchase a first-generation home in traditionally underserved communities.
Eric Johnson, information officer for the marketing and communications division of the California Housing Finance Agency, said work is underway on the second part of the program, which would provide loans of up to 20 percent, or about $100,000.
To qualify for the program: you must be a first-time homebuyer, meaning you have not purchased or applied for a loan in the last seven years; you must also be a California resident; and your parents must not be homeowners, as this program is for generating first-generation homeownership.
There is also support for people who are in adoption situations, those who do not have generational wealth.
Another point to consider, they said, is that there are salary limits of $150,000 to about $230,000.
In the first round, support was granted on a first-come, first-serve basis, but this time around, a lottery will be held from April 23 to 29.
"We want to make sure that everyone has time to approach approved lenders to ensure that their credit is in order and that they receive a pre-approval letter, then they will have to upload that letter with all their documents.”, he commented Eric Johnson.
All applications will be reviewed from April 23 to 29, and a digital lottery will then be held among that group of borrowers, to subsequently contact those chosen so they can come and collect their funds and will have 90 days to find the home they will buy.
Maeve Elise Brown, executive director and founder of Housing and Economic Rights Advocates (HERA), explained that there is a large gap between gender and race, which makes it difficult to achieve equity in housing, something that does not allow communities of color to advance, since the down payment becomes an issue, as is the case for women or single mothers who have a larger job.
Last year, 46 percent of African Americans were homeowners compared to 74 percent of whites, so it's a pretty clear statement, Maeve Elise Brown said.
Ria Cotton-Landry, a real estate agent and owner of Ria Cotton Realty, explained that the average credit score for African-Americans is 695, so they are working to generate more loans and support people who want to buy a home.
"Some of the issues we have faced is saving for the down payment. If there is no generational wealth to tap into, this becomes an obstacle, so this program creates a path to tap into.”, he commented Ria Cotton-Landry.
The expert said that this is a program to generate equity and that one can also think about the future, expanding that house, creating apartments or more rooms, with the mentality of a more solid future.
An additional issue that should be considered is the general awareness of care and savings, since Many people spend their savings and all their funds on paperwork and the down payment, but if the house has an accident they are left homeless, so having a strategic plan is always important, an education beyond the purchase is one of the main goals.
Officials estimate that between 1,700 and 2,000 lottery winners will receive the bonuses and then have 90 days to spend the money on a home, so people are encouraged to register and start the process so they don't miss out on this opportunity.
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