If you’ve been watching the Orange County housing market and feeling like a 20% down payment is an impossible mountain to climb, the California Dream for All (DFA) Shared Appreciation Loan is your best chance to change that in 2026.
As we move into the first quarter of the year, this program is the most talked-about opportunity for Southern California buyers. It’s a specialized loan designed to bridge the gap for first-generation buyers who have the income to support a mortgage but lack the massive lump sum required for a down payment in Orange County.
What is the "Dream for All" Program?
The Dream for All program is a shared appreciation loan. Instead of a traditional grant or a high-interest second mortgage, the state of California provides up to 20% of your home’s purchase price (capped at $150,000).
These funds can be used for your down payment or closing costs. The biggest advantage? There are no monthly payments on this 20% loan. You only repay the principal plus a share of the home's appreciation when you sell, transfer, or refinance the home down the road.
How it Works in Orange County
In our local market, where a well-maintained condo or townhome can easily start in the $700,000 range, a 20% down payment is $140,000. For many professionals in South OC, saving that amount while paying current rent prices is nearly impossible. This program provides that $140,000 for you, immediately lowering your monthly mortgage payment and giving you instant equity.
The 2026 Lottery: What You Need to Know
Unlike the initial rollout years ago, the 2026 program does not reward the "fastest" applicant. It operates on a randomized lottery system to ensure everyone has a fair shot.
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The Window: Registration for the voucher portal is expected to open in mid-February 2026.
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The Voucher: If your name is drawn, you receive a voucher that acts as a reservation for the funds. You typically have 90 days to find a home and get under contract.
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Pre-Approval is Mandatory: You cannot enter the lottery without a "Dream for All" pre-approval letter from a CalHFA-approved lender.
Do You Qualify?
The 2026 criteria are specific, focusing on those who haven't had the benefit of generational wealth through real estate:
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First-Generation Buyer: At least one borrower must not have owned a home in the last 7 years, and their parents must not currently own a home in the United States. (Note: Those who were in the foster care system automatically meet this requirement).
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First-Time Buyer: All borrowers on the loan must not have owned a home in the last 3 years.
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Income Limits: For Orange County, the current moderate-income limit is $206,000. If your household earns less than this, you likely qualify.
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Credit Score: Most lenders require a minimum score of 660 to 680.
Why Mission Viejo is the Perfect Spot for DFA
Mission Viejo is one of the most stable real estate markets in Southern California. Between the high-performing schools, the Lake Mission Viejo amenities, and the safe, quiet neighborhoods, homes here tend to hold and grow their value consistently.
Using the Dream for All program here means you are "sharing" appreciation on a property that is historically a very safe bet. Whether you’re looking at the Casta del Sol area, Pacific Hills, or a starter home near Saddleback College, the 20% head start makes these neighborhoods much more accessible.
How to Get Ready (Before the February Deadline)
Because you need a very specific type of pre-approval to even enter the lottery, you cannot wait until the portal opens to start.
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Step 1: Connect with a CalHFA-approved lender to verify your "First-Generation" status.
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Step 2: Complete the required 8-hour homebuyer education course.
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Step 3: Get your official DFA Pre-Approval letter.
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Step 4: Enter the lottery in February.
Let’s Build Your 2026 Strategy
The Dream for All program is a game-changer, but the paperwork and eligibility requirements can be confusing. If you want to know if you meet the "First-Generation" definition or if your income fits the OC limits, let's talk.
I specialize in the Mission Viejo and South OC markets and can help you navigate the lender requirements so you're ready when the lottery opens.
Click here to schedule a 30-minute strategy call with me to discuss your goals and see if you’re a candidate for the 2026 Dream for All program.
