Undocumented immigrants in California could have a new path to homeownership

Undocumented immigrants may soon have a new opportunity to achieve the American dream of owning a home.

Last month, Assemblymember Joaquin Arambula (D-Fresno) introduced Assembly Bill 1840 to expand the eligibility requirements for a state loan program, making it clear that loans for first-time buyers are available to undocumented immigrants.

The California Dream for All Shared Appreciation Loans program, launched by the California Housing Finance Agency last March, provided qualified first-time home buyers with a loan worth up to 20% of the purchase price of a house or condominium. These loans do not accrue interest or require monthly payments. Instead, the borrower repays the original loan amount plus 20% of the increase in the home’s value when the mortgage is refinanced or the house is sold again.

While the original program aimed to assist low- and middle-income individuals in purchasing a home, it did not address eligibility based on immigration status, according to Arambula.

“The ambiguity for undocumented individuals, even if they meet existing criteria such as having a qualified mortgage, highlights the need for legislative action,” Arambula stated in an interview.

If passed, Assembly Bill 1840 would expand the definition of “first-time home buyer” to include undocumented immigrants.

Arambula emphasized that without clear guidance on eligibility status, undocumented individuals may be discouraged or excluded from participating in the program.

“Homeownership has traditionally been a key way to build generational wealth in the United States. The benefits of homeownership should be accessible to all,” Arambula said.

Last year, the California Dream for All Shared Appreciation Loans program reached its application limit of about 2,300 applicants in just 11 days, prompting the program to be temporarily suspended.

This year, the program will use a lottery system instead of the previous first-come, first-served basis. Interested individuals can now submit their applications, with the lottery scheduled for April.

Additionally, the program has lowered its income eligibility threshold from 150% of a county’s median income to 120%, meaning applicants must earn less than the threshold annually to qualify. For example, in Los Angeles County, the income threshold is $155,000.