CalHFA Dream For All 2026: What First-Generation Homebuyers Need to Know Now
The CalHFA Dream For All program is making a comeback in early 2026 with significant changes. If you're a first-generation homebuyer in Santa Clarita, here's what you need to know to prepare.
What's Changing in 2026?
New Lottery System (Not First-Come, First-Served!)
Unlike previous rounds where vouchers were claimed instantly, the 2026 program will use a randomized drawing system:
- Registration Period: A specific window (likely 2-4 weeks) when applicants can register
- Random Selection: Computer lottery selects voucher recipients
- Equal Opportunity: Everyone who registers during the window has an equal chance
Why this matters: You won't need to refresh a website at midnight. Take your time to prepare properly!
Program Benefits (Unchanged)
- Up to 20% assistance for down payment or closing costs
- Maximum $150,000 in assistance
- No interest and no monthly payment
- Appreciation share when you sell or refinance
Example: Valencia Home Purchase
Home Price: $900,000
Dream For All Assistance: $150,000 (16.7%)
Your Down Payment Needed: $30,000 (3.5% FHA)
Total Down Payment: $180,000 (20%)
Eligibility Requirements
Must-Have Qualifications
✅ First-Generation Homebuyer
- At least one borrower's parents never owned a home
- Most common reason for disqualification - verify carefully!
✅ California Resident
- One borrower must be a current CA resident
✅ First-Time Homebuyer
- All borrowers must not have owned a home in the past 3 years
✅ Income Limits
- Must meet CalHFA income limits for your county
- Los Angeles County (Santa Clarita): See income limits
How to Prepare NOW
Step 1: Verify First-Generation Status
Document your parents' homeownership history:
- Get their full legal names
- Date of birth
- Current address
- Proof of relationship (birth certificate, adoption papers)
If parent is deceased:
- Date of death
- Death certificate may be required
Step 2: Get Pre-Approved by Dream For All Lender
Critical: You must have a pre-approval from a CalHFA-approved lender BEFORE the registration period.
What you'll need:
- 2 years of tax returns
- 2 months of bank statements
- Recent pay stubs
- Credit report (minimum 660 score recommended)
- Government ID
- Gift letter (if using gift funds)
Find CalHFA-approved lenders in Santa Clarita.
Step 3: Understand the Timeline
Expected 2026 Timeline:
- Q1 2026: Program announcement and registration dates revealed
- Registration Period: 2-4 week window (exact dates TBA)
- Lottery Draw: 1-2 weeks after registration closes
- Voucher Validity: 120 days to find a home and get into contract
- Closing Deadline: 180 days from voucher issue
Action item: Mark your calendar and set alerts when CalHFA announces dates!
Step 4: Start House Hunting Research
Don't wait for the voucher! Start researching now:
Santa Clarita Neighborhoods for Dream For All Buyers:
Best Value Options:
- Newhall: $725K median, excellent downtown walkability
- Canyon Country: $715K median, family-friendly
- Castaic: $700K median, lake access
Mid-Range Options:
- Saugus: $795K median, top schools
- Valencia: $950K median, master-planned amenities
Common Mistakes to Avoid
❌ Waiting Until Registration Opens
Problem: Lender pre-approvals take 2-4 weeks
Solution: Get pre-approved NOW. When registration opens, you'll be ready.
❌ Not Having Parent Information Ready
Problem: Gathering parent documentation can take weeks
Solution: Collect all required parent information now. If parents are uncooperative, start working with your lender on alternative documentation.
❌ Assuming You Qualify
Problem: Finding out during registration that you don't qualify
Solution: Meet with a Dream For All lender now to verify eligibility
❌ Not Saving for Down Payment
Problem: Even with $150K assistance, you need 3.5% FHA down
Solution: Start saving now. On a $750K home, you need $26,250 out of pocket.
What If You Don't Get Selected?
If the lottery doesn't select you, don't give up! You have options:
Alternative Down Payment Assistance Programs
CalHFA MyHome Assistance
- 3.5% assistance (up to $15,000)
- Available for first-time buyers
- No lottery system
- Learn more
GSFA Platinum Program
- 5% assistance (up to $15,000)
- Slightly higher income limits
- Available year-round
- Learn more
FHA Low Down Payment
- 3.5% down payment required
- No assistance, but accessible
- Widely available
Success Stories
Maria & Carlos - Valencia Homebuyers
"We prepared for 6 months before Dream For All opened. When we got our voucher, we already knew which neighborhoods we wanted and had toured several homes. We closed on our Valencia home 89 days after receiving the voucher!"
Their strategy:
- Pre-approved 3 months early
- Toured 15+ homes while waiting
- Had parent documentation ready
- Saved 4% down payment as backup plan
Your Action Plan for 2026
This Month (January 2025)
- Gather parent information
- Check credit score (aim for 680+)
- Start saving for down payment
- Contact CalHFA-approved lender
Q1 2025
- Complete lender pre-approval
- Research Santa Clarita neighborhoods
- Tour communities and homes
- Build relationship with real estate agent
Q2-Q3 2025
- Monitor CalHFA website for announcements
- Attend first-time buyer workshops
- Continue saving
- Refine home search criteria
Q4 2025 / Q1 2026
- Register during the registration window
- If selected: Find your home!
- If not selected: Pursue alternative programs
Resources
- CalHFA Official Site: calhfa.ca.gov
- Santa Clarita Lender Directory: Contact us
- Income Limits: View current limits
- First-Time Buyer Guide: Complete guide
Conclusion
The Dream For All program can make homeownership possible for first-generation buyers who thought it was out of reach. With up to $150,000 in assistance and the new lottery system, preparation is more important than speed.
Start now. The buyers who prepare early will have the best chance of success when the program opens in 2026.
Need help getting started? Schedule a free consultation with our Dream For All specialists.
Information current as of January 2025. Program details subject to change. Consult with a CalHFA-approved lender for personalized guidance.