By Cecil Egbele

Contributing Writer | California Local News Fellow

For many Black families in California, owning a home still feels like a distant dream, even for those with steady jobs, decent credit, and years of renting behind them. While homeownership has long been one of the most reliable paths to building generational wealth in the United States, Black Californians continue to be shut out at alarming rates.

That gap in home ownership was the focus of a recent California Black Media “Dream For All” briefing, where housing advocates, policy experts, and community voices discussed why Black homeownership remains low, and how California’s Dream For All Shared Appreciation Loan Program is attempting to change that.

Regina Brown Wilson, convener of the briefing and executive director of California Black Media, laid the foundation of decades-old systemic exclusion of Black families from owning homes and the realities of what Black Californians already feel.

“Black Californians continue to face some of the widest homeownership gaps in the state, rooted in generations of redlining, discrimination, and unequal access to wealth building opportunities,” she said. “Dream For All addresses one of the most persistent barriers to homeownership. This down payment program will help in prioritizing first generation homebuyers and make it a reality that reflects the lived experience for many Black families.”

Statewide, Black Californians have the lowest homeownership rate of any racial group. Roughly one in three Black households owns a home, compared to nearly two-thirds of White households. This is the largest gap of any major racial group in the state. This disparity is not about personal responsibility or lack of effort, experts say; it is the result of decades of structural barriers.

INCOME ISN’T THE WHOLE STORY

The down payment, often in tens of thousands, is the biggest obstacle.

One key reason for this disparity is that housing in California is expensive compared with incomes, especially for Black and other families of color. In 2024, only about 10% of Black households statewide could afford a median-priced single-family home, compared with 21% of White households and 27% of Asian households.

KERN COUNTY: “MORE AFFORDABLE,” STILL UNEQUAL

Kern County is often described as more affordable than coastal California, and in some ways, that’s true. Home prices are lower than in Los Angeles or the Bay Area. But the affordability gap for Black households remains one of the largest in the state. This means that they are less likely to have the income needed to buy a home.

That’s where California’s Dream For All Shared Appreciation Loan Program comes in.

HOW THE PROGRAM WORKS

Eric Johnson, an information officer with the California Housing Finance Agency (CalHFA) who has worked with first-time buyers for more than two decades, described the program in straightforward terms.

“This program was started by the California legislature in 2021 specifically to help out the people who did not have a down payment,” he said.

The program provides up to 20 percent of a home’s purchase price as down-payment assistance for eligible first-time buyers. Johnson gave an example that many Californians can picture:

“If you buy a home for $500,000, we’ll loan you $100,000 for the down payment. What that means is you’re only paying your monthly payment on $400,000 instead of $500,000.”

Johnson said a news analysis of this program by CalMatters found that “the average home buyer would probably save about $1,000 on their monthly payment.” For families already stretched by gas, groceries, and childcare, that difference can be life-changing.

Housing advocates say this structure can dramatically lower monthly mortgage payments, sometimes by hundreds or even thousands of dollars, making ownership more realistic for first-time buyers.

YOU QUALIFY IF:

• You haven’t owned a home in the past seven years (first-generation homebuyer)
• You haven’t owned and occupied your own home for the past three years (first-time home buyer)
• Your parents don’t currently own a home
• You were ever in foster care (you automatically qualify)

The program especially wants to help people whose families have never owned property, breaking that cycle so you can pass something down to your kids.

“We really want to kick start the cycle of wealth generation, of the generational wealth that you can pass down to your kids,” Johnson said.

Johnson was honest about why the program is needed, especially in Black communities.

“The Black community has been completely shut out of the housing market,” Johnson said, pointing to generations of explicit and implicit discrimination the program aims to address.

WHEN TO APPLY AND SELECTION PROCESS

“We’re hoping to help about 1000- 1500 people,” Johnson said. “The window for applications opens up on February 24th and then closes on March 16th.”

He explained that it works like a lottery.

“We’re doing a random selection this time, like we did the last time,” he said. “Whether you apply on February 24th or March 16th or anywhere in between, there’s the same probability of being selected to receive the opportunity to apply for this program.”

His biggest piece of advice: don’t wait to get ready.

FROM HOMELESS TO HOMEOWNER

Tiffany Smith was living in her car when she first heard about a California program that could help her buy a house. She almost deleted the email.

“I come from homelessness, and I didn’t know my story would change from homeless to homeowner,” Smith said. But she took a chance, applied for the California Dream For All program, and today she owns a three-bedroom home.

CREDIT CONCERNS

This is where people get scared, even to try. But Shanta Clark, a loan consultant who specializes in helping first-time Black homebuyers, says don’t count yourself out.

“There’s a lot of classes that will run your credit for free. There are about 15 to 20 different agencies that can help clear up credit… remove things or tell you what to do to boost credit.”

Smith’s credit score was in the 600s when she started. By the time she closed on her house, it was 771.

WHY IT MATTERS

As California looks for ways to address racial inequities in housing, Dream For All represents a step toward helping Black families turn long-standing dreams into keys in hand.

“This opportunity is really for everyone,” Wilson said, “but it’s critical that African-American families have the chance to learn about this program.”