California has money to help first time buyer to own a home, Assembly Bill 1840 would add undocumented immigrants
What is the proposed Assembly Bill 1840?
California has money to help first time buyers to own a home, it is called, The Dream For All Shared Appreciation Loan.
The Dream For All Shared Appreciation Loan is a down payment assistance program for first-time homebuyers to be used in conjunction with the Dream For All Conventional first mortgage for down payment and/or closing costs.
Upon sale or transfer of the home, the homebuyer repays the original down payment loan, plus a share of the appreciation in the value of the home.
Program Highlights
• Offers up to 20% for down payment or closing costs, not to exceed $150,000
• Homebuyer must register for a voucher. A randomized drawing will select registrants who will receive the voucher. This will not be first come, first served.
Eligibility
• One borrower must be a first-generation homebuyer.
• All borrowers must be first-time homebuyers.
• Income must meet CalHFA Income Limits for the county you are purchasing in.
Last year when this program was out of money in weeks and a large percentage of those looking to buy a home for the first time were left out.
The program was for first time buyers and not for undocumented immigrants.
Assembly member Joaquin Arambula (D-Fresno) introduced Assembly Bill 1840 last month to expand the eligibility requirement for a state loan program to clarify that loans for first-time buyers are available to undocumented immigrants.
The California Dream for All Shared Appreciation Loans program that launched last March by the California Housing Finance Agency offered qualified first-time home buyers with a loan worth up to 20% of the purchase price of a house or condominium.
The loans don’t accrue interest or require monthly payments. Instead, when the mortgage is refinanced or the house is sold again, the borrower pays back the original amount of the loan plus 20% of the increase in the home’s value.
The original program was established in an effort to help low- and middle-income individuals buy a home, but the program doesn’t address eligibility based on immigration status, Arambula said.
“It’s that ambiguity for undocumented individuals, despite the fact that they’ve qualified under existing criteria, such as having a qualified mortgage,” he said in an interview. “Underscores the pressing need for us to introduce legislation.”
Feb. 15, 2024
If Assembly Bill 1840 is passed, it would broaden the definition of “first-time home buyer” to include undocumented immigrants.
Without the explicit status, undocumented individuals may be discouraged or left out of the opportunity to participate, Arambula said.
The California Dream for All Shared Appreciation Loans program hit its applications limit of about 2,300 applicants in 11 days last year, and the program was halted.
This year, the program will replace its first-come, first-serve basis with a lottery. Interested people can submit their application now, with the lottery taking place in April.
Another change to the program is its income eligibility threshold, which was 150% of a county’s median area and has been dropped to 120%.
That means applicants must earn less than the threshold annually to be eligible. In Los Angeles County, the income threshold is $155,000.
In my option The California Dream for All Shared Appreciation loan program, just lost the reason it was created.
This Bill would be like adding a couple of number to the lottery, were undocumented immigrants could dominate is loan program.
What’s the difference between legal and undocumented immigrants?
Call or text (909) 226-3551 to set an appointment or to ask a real estate question
Legal immigrants are foreign-born people legally admitted to the U.S. Undocumented immigrants, also called illegal aliens, are foreign-born people who do not possess a valid visa or other immigration documentation, because they entered the U.S. without inspection, stayed longer than their temporary visa permitted, or otherwise violated the terms under which they were admitted.
The above explanation of what is difference between legal and what is an undocumented immigrant: dshs.wa.gov/faq
Steve Olmos
Selling real estate in Southern California since 1980
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