LOS ANGELES — You may have seen the videos on TikTok promising something that sounds too good to be true: Free cash from the state of California to help you buy your first home. The good news is, that program actually exists! The bad news is, it's already out of money.
The California Housing Finance Agency launched the California Dream for All Shared Appreciation loan program two weeks ago, offering qualified first-time buyers up to 20% of the purchase price of a house or condominium. The help was available only to households whose earnings were below CalHFA's income limit, which is $180,000 in Los Angeles County and $235,000 in Orange County.
State lawmakers had set aside $500 million for the program as part of the 2022-23 budget. But a looming fiscal shortfall led Gov. Gavin Newsom to propose a 40% cut, so when CalHFA launched the program late last month, it was allocated only $300 million and expected to assist about 2,300 home buyers.
