Research shows that homeownership has benefits beyond simply the persons who live in the home. Studies show homeownership has health benefits, reduces crime, increases education and civic engagement. 


With all of these benefits to homeownership, how do you increase homeownership rates?

A recent California Housing Finance Agency (CALHFA) program called the “California Dream For All – Shared Appreciation Loan” came out and proved that homeownership is still a huge goal for most people. This program allocated almost $300 million towards down payment assistance for eligible Californias. Here is what is incredible — Cal FHA has already announced that they are pausing the program because the funds are reserved! This was a program designed for first time home buyers, purchasing a home to live in. There was a huge response from lenders and real estate agents to educate clients about it and share the information. 

What does this mean? It means that the demand is there! People want to buy homes, but they need the solution to get there.


Here are a few out-of-the-box ideas for first time home buyers:

1. Gift Funds – If a family member is willing to gift funds, this can greatly help with providing the down payment. Talk to your lender about how the gift funds need to be documented. 

2. Down Payment Assistance Programs (DAP) – The Cal HFA “California Dream For All – Shared Appreciation Loan” isn’t the only down payment assistance program, but it did get people excited! Sitting down and talking with their real estate agent and lender will help a potential home buyer find out what they might be eligible for. There are other DAPs available, each with its own program rules. 

3. Adjusting Search Criteria – Sometimes a home buyer starts with a search criteria of certain cities and single family residences only and realizes they are priced out of the market unless they open their options up to more cities and condos/townhomes.

4. Pooling Funds and Co-Borrowing – Sometimes instead of buying as a single person, it makes sense to partner with a family member, friend, or partner on a purchase. 


At KALEO, we advocate for homeownership. We enjoy advocating for clients, whether they are buying or selling.

Interested in getting a range for the value of your home? Need more information on down payment assistance programs? Call us today! 



This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.