California Dream For All 2026: Up to $150K for First-Time Homebuyers

Saving for a down payment in the Bay Area can feel like trying to fill a swimming pool with a garden hose. Median home prices here hover around $800,000 or higher, and the math for first-time buyers rarely adds up without help.

That’s exactly why the California Dream For All 2026 program matters. Run by the California Housing Finance Agency (CalHFA), it offers first-time, first-generation homebuyers up to $150,000 in down payment assistance — with no monthly payments on that amount while you live in the home.

The application window is tight: February 24 through March 16, 2026. After that, applicants are chosen by lottery. If you’ve been watching the Bay Area housing market from the sidelines, this is one of the most significant down payment assistance programs California has ever offered.

Here’s what you need to know — and what to do right now to be ready.

What Is the California Dream For All Program?

Dream For All is a shared appreciation loan from CalHFA designed to help first-generation homebuyers cover their down payment and closing costs. The program provides up to 20% of a home’s purchase price or appraised value, capped at $150,000.

The key word there is shared appreciation. There are no monthly payments on the assistance amount. Instead, when you eventually sell, transfer, or refinance the home, you repay the original loan plus a percentage of the home’s appreciation. For most borrowers, that’s 20% of the appreciation. If you earn at or below 80% of the Area Median Income, the share drops to 15%.

Think of it as the state investing alongside you. Your monthly payments stay lower, you get into a home sooner, and California recoups its funds when you build equity — which then gets recycled to help the next buyer.

Who Qualifies? Eligibility for Dream For All 2026

This isn’t a program for just anyone. The requirements are specific:

First-Time Homebuyer

All borrowers on the loan must be first-time buyers, meaning you haven’t owned a home (or been on a property title) in the past seven years.

First-Generation Homebuyer

At least one borrower must be a first-generation buyer. That means your parents do not currently own a home. This requirement is what sets Dream For All apart from other assistance programs — it’s targeting families who haven’t had generational access to homeownership.

Income Limits and Residency

You must be a current California resident, and your household income must fall within your county’s limit. For Bay Area buyers in Alameda and Contra Costa counties, that limit is approximately $253,000. That’s notably higher than many assistance programs, which makes this accessible to a wider range of Bay Area households. You can verify the income limits for your county on CalHFA’s website. The home must be your primary residence.

How the Dream For All Lottery Works

Previous rounds of Dream For All were first-come, first-served, and funding disappeared within days. CalHFA learned from that. The 2026 round uses a random lottery system, which means timing doesn’t matter — only eligibility and completeness of your application.

Here’s the process:

1. Get a pre-approval letter from a CalHFA-approved lender before the window opens.
2. Create an account and apply in the DFA Application Portal between February 24 and March 16, 2026 (deadline: 5:00 PM PDT on March 16).
3. Upload required documents: government ID, proof of current address, and foster care documentation if applicable.
4. Complete required certifications confirming residency, first-time buyer status, and first-generation buyer status.
5. Wait for the random selection. CalHFA will draw applicants after the window closes. At least 10% of funding is reserved for applicants in Qualified Census Tracts.
6. If selected, you’ll have 90 days to find and close on a home.

Only one application per household is allowed. Duplicate submissions will be removed.

What This Means for Bay Area First-Time Homebuyers

Down payment assistance in California has always been competitive, but the Bay Area has a particular advantage here: the income limits are among the highest in the state. A household earning up to $253,000 in Alameda or Contra Costa County can still qualify.

CalHFA expects to make between $150 million and $200 million available this round, potentially helping 1,000 to 1,500 families statewide. That’s not a lot for a state of 40 million people, so competition will be stiff. But for those who do get selected, the impact is substantial — $150,000 toward a down payment can be the difference between renting indefinitely and building equity in your own home.

The program has already helped roughly 4,100 borrowers across California since its launch, with nearly $550 million distributed. As those homeowners sell and repay their shared appreciation loans, the funds get recycled back into the program.

How to Prepare Right Now

The application window is less than two weeks away. If you think you qualify, don’t sit on this. Here’s your checklist:

• Confirm your eligibility: First-time buyer? First-generation buyer (parents don’t currently own)? Income under $253,000 in Alameda/Contra Costa County? California resident?
• Contact a CalHFA-approved lender immediately to start your pre-approval. You cannot apply without this letter.
• Complete a homebuyer education course. This is required before closing and can take time to schedule. HUD’s housing counseling directory can help you find an approved course near you.
• Gather your documents: government-issued ID, proof of current California address (utility bill, voter registration, etc.), and any foster care documentation if applicable.
• Set a calendar reminder for February 24. The portal opens that day and closes March 16 at 5:00 PM PDT.

Frequently Asked Questions

The Bottom Line

The California Dream For All 2026 program represents a real opportunity for first-time, first-generation homebuyers in the Bay Area. Up to $150,000 in down payment assistance, no monthly payments on that amount, and income limits high enough to include many Bay Area households — it’s one of the most meaningful homebuyer programs the state has launched.

But meaningful doesn’t mean easy. Funding is limited, demand will be enormous, and you need to have your documents and pre-approval ready before the portal opens on February 24. The application deadline is March 16, 2026.

If you or someone you know qualifies, start the pre-approval process today.