For many Californians, the biggest obstacle to buying a home is not the monthly payment. It is the down payment.

Saving that amount, especially in higher-cost areas like Santa Barbara, can feel out of reach even for households with solid incomes and stable jobs.

That challenge is even greater for first-generation buyers who do not have family resources to fall back on.

This year, the state is again offering a program designed to help address that specific barrier.

The California Dream For All program, administered by the California Housing Finance Agency (CalHFA), will open its 2026 application window on Feb. 24 and close it on March 16.

The program provides eligible first-time buyers with down payment assistance of up to 20 percent of the purchase price or appraised value, capped at $150,000.

In practical terms, that assistance can make the difference between continuing to rent and being able to buy a home.

The program is structured as a shared appreciation loan. Buyers do not make monthly payments on the down payment assistance.

Instead, when the home is sold or the mortgage is refinanced, the buyer repays the original assistance amount plus 20 percent of the home’s appreciation. Those funds are returned to the state and used to help future buyers.

The goal is to create a program that can continue helping families over time rather than operating as a one-time grant.

To qualify, applicants must be first-time homebuyers, meaning they have not owned a home in the past three years. In addition, at least one buyer must be a first-generation homeowner, which means their parents do not currently own a home.

Income limits apply and vary by county. In Santa Barbara County, household income must be under $188,000. Buyers must also meet credit requirements, generally a minimum credit score of 660, and work with a CalHFA-approved lender to obtain a mortgage pre-approval before applying.

Because interest in the program has been very high in past years, applications are not approved on a first-come, first-served basis. Instead, the state uses a random selection process to distribute available funds fairly across California.

For the 2026 cycle, the state expects up to $200 million to be available. Funding has been divided among regions to ensure fairness.

This is not a solution for everyone. Not all applicants will be selected, and buyers should carefully consider the long-term implications of sharing future appreciation.

Still, the program has already helped thousands of Californians buy their first home, many of whom believed it would never be possible.

As Realtors, we believe access to clear information matters. Programs like this do not replace the need for more housing, but they can help qualified buyers overcome a real and specific hurdle.

For those thinking about buying their first home, learning about the program and preparing early can make a meaningful difference.

More information, including eligibility details and a list of approved lenders, is available on the CalHFA website.