Alright, so I wanted to tell you guys about this brand new down payment assistance loan program that just came out. This is something that's only going to be around for a super short period of time. So if it's something you're interested in, you're going to want to take advantage of it over the next couple of weeks. But it's designed for first time home buyers and you can get a grant for up to $150,000 to put as a down payment towards your first home. So there's a lot of fine print and not everyone's going to qualify, but if this is something that you're interested in, you're going to want to try and take advantage of it and you're going to want to try and do that quickly. So let's go ahead and get into all the info.

Hey guys. Hey again, my name is Justin Short. I'm a realtor and team leader for the short real estate team here in Temecula, California in Myriad California here at Keller Williams. And this video is all about the brand new down payment assistance loan program that's just come out. Again, it's only going to be around for a short period of time, but it is called the Cal Half a Dream for All Shared Appreciation Loan Program. It's something that actually they ran last year and the program dried up so quickly they had to really change a lot of their process and how everything worked. But last year, all the funds ran out in less than two weeks. So I think it's a really great program to take advantage of. It's a big chunk of funds that they're willing to give you up to $150,000 to buy your first home.

Again, there's a lot of fine prints, so we're going to go over all the details on that, but I think if you're a first time home buyer, this is something you're going to want to know more about and something you're going to want to try and take advantage of. Before we get into all the specifics though, if you are liking real estate videos like this about the local Temecula, myta, and Menifee area, do me a favor, please hit like please hit subscribe. So obviously it helps me, it helps my channel. Obviously we're trying to continue to grow it. And then if you guys have any real estate questions, of course I would love to hear from you so you can feel free to reach out. You can give me a call, you can text, you can email me. You're going to see my information at the end of the video or you're going to see it down below.

And I have people that reach out all the time. So I'm happy to chat with you, happy to answer any questions you may have, or of course myself and my team, we would love to help you out with your home search as well. But the number goes straight to me. That's my personal cell phone. Alright, so again, the name of the program is the Cal HAFA Dream for All Shared Appreciation Loan Program. It's something that I think is really cool and something you're probably going to want to take advantage of, but the way it works is this. So the program will give you up to 20% to put as a down payment to purchase your first home. And those 20% of funds is 20% of the purchase price, and that amount can be up to $150,000 to use as a down payment. And that's a big chunk of money.

So there are occasionally some different down payment assistance programs are out there, but in general they kind of cap out maybe 10,000, maybe 20,000. And there's some fine print there about interest rates and what that looks like, et cetera, right? So for this dream for all shared appreciation loan to give 20% up to $150,000, that's a really great program. That's a lot of funds that are able to help you out. And not only that, when you're putting such a large chunk down, that's really going to help shrink your mortgage payment to help make it more affordable for you as a home buyer. So that way you're not paying this sky high monthly mortgage. So the way it works is this is all borrowers must be first time home buyers. So what that means is if you are buying a home yourself just as a single person, you must be a first time home buyer.

Or if there are two people, say it's a spouse, husband and wife or whatever it is, right? If two people are buying that home are going to be on the loan, then both of those people need to be first time home buyers as well. So that's an important thing. And then in addition to that, this is a new rule that was not in place last year, but at least one of the home buyers that's on the loan. So let's say if there's two people, at least one of them must be a first generation home buyer. So which means your parents could not have owned a home, and that is not limited to just California anywhere in the United States, but only at least one of the borrowers must have, must be a first generation home buyer. So if it say it's a husband and wife and let's say the husband's family owned a home, but the wife's family never has, then they would go ahead and qualify for the program.

So that's an important distinction that wasn't in place last year. There are also some income limits. So right now for Riverside County, there is a household income limitation of $149,000. So if your household earns more than $149,000, you're not going to qualify for the program. This is not going to be a fit for you. Keep in mind, I am not a lender. I am a real estate agent. So all the specifics you're going to want to talk with the certified lender that can work you through that exactly how they calculate income. I believe it has to do with how you file your taxes and how much income you're showing after write offs if you're self-employed or if your W2 is going to be calculated differently, et cetera. But that's over my head. That's not my department. I do have a really great lender that I work with that is certified for this program.

They can give you all the details and let you know if you're going to qualify and do your application, et cetera. But those are some big roles. All home buyers must be first time home buyer, at least one of the home buyers must be a first generation home buyer. Then you have to be on that income limit. And this is a new spin. Like I mentioned, this program was in place last year. The program dried up super fast. So there was so many dollars and funds that the government had set aside for this program and all the funds that they had earmarked for this program all went away in less than two weeks. So they all got snapped up. Really, it's something a lot of people took advantage of it super, super quickly, which is great. So the goal is to help people be able to buy a home.

So that's a great thing, but all the funds went away so quickly. I personally had some clients that were approved and wanted to use the program, but we didn't realize it was going to go away so quickly and they missed out. They didn't missed out on their opportunity. So because of that, the process is this. There is a period where you can apply to be a part of this program. So the way to do that is you have to contact a certified lender. Again, I have a great one here in town that I can set you up with, but it needs to be a certified lender for this program. You must apply for the loan, you must be approved as far as your credit history, income, et cetera, to be able to get the mortgage. Once you are approved, then you have get a ticket that is sent into the system and basically it ends up being a lottery system.

So there's a time period where everyone can apply to be a part of the program. And then once all the applications are received, the program director, I don't know the director or whoever the powers that may be are going to do a lottery system to pull out the people that have been selected that are actually going to be eligible to use the funds. So to me, that's a lot better system than what was in place last year. Like I mentioned, it was kind of a mad dash. I had a few clients to miss out on their ability to use this program because the funds dried up so quickly and honestly it was heartbreaking for them. They felt like they're going to have this great opportunity to be able to buy a home and it went away. So I think the lottery system is going to work a lot better.

And then from what I understand, the dates have not been finalized, it's my understanding. But right now to timestamp this video, so I'm recording this on leap day, so it's February 29th and the open enrollment period to apply for this program is during the month of March. So by the end of March, the date is not firm, so the sooner the better. I don't know if it's going to be March 20th or March 31st, but sometime towards the end of March they're going to have a cutoff and then they'll go ahead and do the lottery. Once the lottery happens, if you have been selected, you're going to have a certain period of time to go ahead and use those funds and get your offer accepted. I'm not quite sure if that's going to be 30 days or 60 days as far as to find a property to be able to jump into and start being able to use the program. So some of the specifics we'll be able to find out here for you shortly. But I wanted to give you guys the information. This is something you're interested in. You're going to want to go ahead and apply for it quickly to at least get the approval, get your name in the lottery system and then see if you're going to be lucky enough to be chosen. But the way the program is going to work is this, I kind of give you guys the highlights as far as what's needed, et cetera.

As name implies, this is a shared appreciation loan program. So let's use some examples. So let's say if you were going to go buy your first home, and let's say you were going to go buy a home for $500,000, awesome, cool. If you are selected for this program, you can get down payment assistance for up to 20% of the purchase price. Great. So let's do some simple math. So that's a $500,000 home, 20% for down payment. That's $120,000. That means that's going to be your grant for the down payment assistance, and that means you're going to get a mortgage. You're going to pay a mortgage on the difference, the 380,000. Great, awesome. So now you are going to own the home. You're going to close escrow, you're a homeowner. One of the advantages for you is you are gifted that 120,000. So your mortgage is on that smaller amount, the three 80, right?

You only paying a mortgage on three 80 instead of four 90 or four 80, whatever a typical first time home buyer would have, you're going to own the home. You're going to make your mortgage payment each month, each month, each month. There's a really cool sample graphic that CalHFA put together. So I'm going to have that here. Hopefully we'll be able to display that here in the video and you guys will be able to check it out and I'll talk over it. But as the graphic shows, let's say five years later, this is hypothetical because knows what's going to happen in the market, but let's say five years later, the home you purchased for 500,000 is now worth $640,000. Awesome. So you've gained a lot of equity, that is great. And let's say five years later, and now that it's worth six 40, we're going to decide to go ahead and sell the property.

We need something bigger, we're moving out of the area, whatever it is, okay? So it's a shared depreciation loan program. That means that the Cal half a program is going to earn and be entitled to a percentage of that appreciation in home value. So in this case, if you sold a home, if you're going to sell this home for $640,000, that means the home has gone up in value $140,000 from the 500 K you bought it for. So out of that 140 k, 20% of the appreciation is going to go back towards the down payment assistance program. It's going to go back to Cal Haa, okay? So that means 20% goes to Cal Haas, that's in this case 28,000, and then 80% goes to you as a homeowner. So in this case, that's 112,000, right? So you are going to have to repay those funds when you go to sell the property, plus they get a percentage of your appreciation.

So in this case, the 20%, but you as the homeowner get to keep the other 80% in appreciation. So just know that that's how it's going to work. From what I understand, you are going to be able to refinance the property one time before you have to pay back any funds. So that's something to keep in mind. And if you keep the home forever, as far as I know, you check with a lender of course, but I don't think you're going to have to repay anything. So if you plan to keep it long-term and live there forever, you're just always going to be able to take advantage of that. So those are some important things to know. I have talked about this to a couple clients and they've asked me, Hey, do I think that this is a good idea to use this down payment assistance program even though I have to pay it back?

And even though the program gets a percentage of my appreciation in the future, and to me, yes, absolutely, I do think it's a really good idea. I think it is a way for you as a first time home buyer to be able to get into your first home easier. I think the most difficult part of buying a home as a first time home buyer is saving up that cash for a down payment. So this is a gift to be able to take advantage of. And then not only that, with today's home prices, they're not cheap. Obviously, they're at all time highs, right? So if you can save a hundred thousand dollars of mortgage payments, of amount of your mortgage loan, that's going to make your monthly mortgage a lot more affordable, it's going to make really, your payment probably is pretty comparable to what a rent payment's going to be at that point.

I think it's a great thing to take advantage of. But if everyone's going to make their own decision there, again, I am not a lender, so you're going to want to talk the specifics with your lender of choice. I have a great lender that I work with. I'd love to refer you over to him. He'll do a great job. He can give you all the details, talk to you about the pros, talk to you about the cons. He's certified. He can get you in for the program and see if we can get you selected for the lottery. Hopefully that's good information for you guys. If you have any questions, you can feel free to reach out. And again, this is something you want to take advantage of. You're going to want to do this over the next two to three weeks. This is something you want to jump in, you don't want to miss out on it. If this is something of interest to you. So you guys can feel free, my information's at the end of the video or it's down below. You can call, you can text, you can email. Let the chat with you and hopefully talk to you soon. Thanks.