CA Dream for All program or NACA?

[Mengrou Cao]

Hello Everyone,

I am located in CA. I have a dilemma for purchasing my first home. In CA, we have this dream for all program. It is a shared appreciation loan program that can help me put 20% down with 0 interest. I don't need to pay it back until I sell or 2nd refinance the home. But the catch is when I sell the house. Other than the 0 interest loan that I need to pay back, but also pay 20% of the appreciation. If I take this program, the rest of the mortgage is coming from my lender, which give me a fixed 30 year rate at 6.99%. I am not sure if I should go with this program. I love the equity, but the high interest rate for the mortgage is discouraging. Compared to NACA, I can have a 5.37% on a 30 year fixed, but with no equity in the house. Please advice me which route I should choose. The dream for all program for gaining the equity or the NACA for lower interest rate. I greatly appreciate your help.