Can I House Hacking CalHFA Dream For All Shared Appreciation Loan?

[Dylan S.]

I recently was on a call with a loan officer on this new shared appreciation loan program CA is offering. Through the program, the state will give you 20% of the down payment or $150K (whichever is less) at no interest. However, when you sell the home, you will owe 20% of any appreciation on the home in addition to whatever you borrowed.

My intention going into this was to house hack for a year or so and then refinance. However, after talking with the loan officer, he said you cannot change your primary residence while in this loan (even after a year) and that it was technically the same for FHA loans. But I've heard many people house hack with an FHA loan where you use it as your primary residence for a year, and then you can move out and rent the rooms no problem. Is this a scenario where it is technically not allowed but many people do it?

[Harrison Colunga]

Hello Dillon! 

As a loan officer, I'd like to mention that CalHFA has a "lottery" system in place. So make sure not to rely too much on securing the CalHFA loan.