California Dream For All Is Coming Back in 2026. What Los Angeles Buyers Need to Know
If you are living in Los Angeles and wondering if homeownership will ever feel realistic, you are not alone. Between rising home prices, higher rents, and the challenge of saving a large down payment, buying a home can feel completely out of reach for many families.
The good news is that the California Dream For All program is expected to return in early 2026, and for many first time and first generation buyers in Los Angeles, this could be a major opportunity to finally step into homeownership.
As a local Los Angeles real estate broker who has helped buyers navigate this process, I want to explain what the program is, what to expect for the 2026 launch, who qualifies, and how to prepare so you are ready if this option fits your situation.
What Is the California Dream For All Program
Dream For All is a program through the California Housing Finance Agency, also known as CalHFA. It provides shared appreciation down payment assistance that can cover up to:
20 percent of the home purchase price or up to $150,000, whichever is less
These funds may be used toward your down payment and eligible closing costs.
The assistance is structured as a second loan with no monthly payments. You do not pay anything toward the Dream For All loan while you live in the home. Repayment occurs when you sell, refinance, or transfer ownership. At that point, you repay the original assistance plus a portion of the home’s appreciation.
The appreciation share depends on household income tier, but the biggest benefit remains the same. It removes the largest barrier to homeownership in Los Angeles, which is saving a six figure down payment.
Who Is Eligible
Eligibility for the 2026 program is expected to remain similar to previous years.
To qualify, buyers must meet the following guidelines:
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Be first time homebuyers meaning no homeownership within the past three years
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At least one borrower must be a first generation homebuyer, meaning that borrower’s parents or legal guardians have not owned a home in the last seven years or the borrower qualifies through foster youth eligibility
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Be California residents with at least one borrower meeting this requirement
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Purchase the home as a primary residence
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Meet Los Angeles County household income limits
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Complete a CalHFA approved homebuyer education course and use a CalHFA approved lender
Income limits vary by household size, but many working families across Los Angeles qualify even when they assume their income is too high. This program was designed for buyers with steady income who struggle most with saving a large down payment while paying rent and living expenses.
What Is Changing for 2026
Because demand exceeded funding in prior years, the state moved away from first come first served sign ups and implemented a lottery voucher system.
This same structure is expected for the 2026 launch.
Here is how the process works:
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Buyers register during the official window once it opens
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All eligible registrants enter the random lottery system
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Selected applicants receive Dream For All vouchers allowing them to proceed
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Buyers not selected must wait for future rounds or pursue alternative programs
Current guidance indicates voucher registration is expected to open in early 2026, but a final date has not yet been announced.
Why Dream For All Matters for Los Angeles Buyers
Los Angeles remains one of the toughest housing markets in California for first time buyers. Even with good credit and solid income, saving tens or hundreds of thousands of dollars for a down payment keeps many renters out of the market.
Dream For All can dramatically change what is possible by providing assistance of up to 20 percent of the purchase price. This allows buyers to:
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Submit stronger offers when competing with multiple buyers
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Lower their overall mortgage payment
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Reduce or remove mortgage insurance
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Increase buying power without large cash reserves
For many families across Los Angeles, this program is the difference between remaining stalled as renters and stepping into long term homeownership.
The Tradeoffs Buyers Must Understand
Dream For All is not free money. It is shared appreciation assistance.
When you sell or refinance, the state is repaid the original loan amount plus a portion of your home’s appreciation. That means your final equity could be lower compared to using your own cash alone for the down payment.
However, many buyers still benefit because they gain access to appreciation years earlier than waiting to save a full down payment on their own.
This decision should always be reviewed using personalized numbers and long term goals, not headlines.
How to Prepare in 2025 for the 2026 Lottery
Preparation is everything with this program.
Confirm Eligibility
Verify first time buyer status and confirm that one borrower qualifies under the seven year first generation definition or foster youth pathway.
Improve Credit and Lower Debt
Higher credit scores and lower monthly obligations improve purchasing power and approval strength.
Connect With a CalHFA Approved Lender
Pre approvals typically start well before the lottery opens and allow faster action if selected.
Complete the Homebuyer Education Course Early
This course is required and completing it early can avoid delays during escrow.
Understand Real Purchase Pricing
Knowing which neighborhoods and price points fit your budget prevents rushed decisions if you receive a voucher.
Is Dream For All Worth Trying in Los Angeles
Absolutely.
Even with the lottery format, Dream For All remains one of the strongest opportunities for first generation buyers who struggle most with saving a down payment in Los Angeles. If the program fits your situation, it is well worth preparing for and applying.
That said, selection is not guaranteed, and not being chosen does not mean your path to homeownership ends.
There are many other down payment assistance programs and city grant programs across Los Angeles County that help buyers with down payments and closing costs. Some offer forgivable grants or deferred payment loans with no monthly payments and no shared appreciation requirement.
I help buyers purchase homes regularly using assistance programs outside of Dream For All, even when they were not selected through the lottery. In many cases, these alternatives are a better fit depending on income, household structure, credit profile, and neighborhood choice.
Dream For All should be viewed as one option within a larger tool kit, not the only path to owning a home in Los Angeles.
Want Personalized Guidance
Every buyer’s situation is different.
If you want to know which programs you actually qualify for and what your realistic purchase options look like for 2026 and beyond, I can help you:
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Confirm first generation eligibility
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Review household income limits
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Compare Dream For All to other assistance programs
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Build a custom buying strategy for Los Angeles
Reach out anytime when you are ready for clear answers and real guidance.
Elizabeth Sanchez
Los Angeles Real Estate Broker Associate
COMPASS
DRE #02082844
Serving Los Angeles and surrounding communities
