Individuals may have heard that California is “giving away” $150,000 to first-time home buyers—but let’s break down what’s really going on.
This amount refers to the California Dream For All 2025 program. It was simply designed to present up to 20% of a home’s purchase price (capped at $150,000) as a shared appreciation loan. The goal? To aid first-time buyers with the down payment so they could afford a home in one of the USA’s most expensive markets.
However, the below elements should be taken into consideration:
- The program is not a cash giveaway—it’s a loan.
- Repayment is necessary once the home is sold or refinanced. It covers a share of the home’s appreciation.
- As of 2025, the program is temporarily paused due to all available funds being allocated during its initial release.
So no, California isn’t handing out $150,000 checks. But the program did lend a helping hand to many first-time buyers when active. If it receives more funding in the future, it could open again.
Other Options for First-Time Home Buyers
It is true that the California Dream For All 2025 is currently on hold. However, buyers still have options. Other programs present meaningful assistance without repayment obligations:
- CalHFA MyHome Assistance Program: A deferred-payment loan covering up to 3.5% of the purchase price for down payment or closing costs.
- Closing cost grant California programs like Pathway to Home: Provides up to $10,000 to qualifying buyers—no repayment needed.
- City-level aid: For example, Los Angeles offers up to $161,000 to low-income first-time buyers.
No Tax Credits
It should be acknowledged that these tools are not technically tax credits. So, if you’re searching for a California first-time homebuyer credit, it’s better to look at them as part of the broader California housing assistance for first-time buyers effort.
Need Help?
Want help sorting through the options or recognizing if you satisfy qualifications? Dimov Tax is ready to present assistance in financial planning and deduction review as well as coordination with the loan team. Contact us today to schedule your first consultation.