South San Francisco, CA – May 11, 2022
A new program for homebuyers helps them purchase a home with a loan of up to 10% of the purchase price. One of two new programs announced last month, the state of California is helping would-be homeowners with the down payment. The program allows first-time homebuyers to borrow a down payment at no interest.
“According to the California Housing Finance Agency, the Forgivable Equity Builder Loan program will help homeowners with a loan of up to 10% of the purchase price.”
Even better, you don’t have to repay the (junior) loan if you remain in the house for at least five years.
The loan is available to:
Residents of California with income less than 80% of the area median income in the county where they want to purchase the property
The loan can be used for:
Closing Costs (including rate buydowns)
CalHFA’s Executive Director Tiena Johnson stated, “Home equity has proven to be one of the strongest ways for families to build and pass on intergenerational wealth and CalHFA is committed to improving equitable access to homeownership for all Californians. The Forgivable Equity Builder Loan, which gives first-time homebuyers a head start with immediate equity in their homes, will help California families build and pass on that wealth with a secure, stable home loan.”
You can get more information and apply at the CalHFA’s website here: https://www.calhfa.ca.gov/about/press/press-releases/2022/pr2022-04-07.htm
The loan is available through CalHFA’s network of lenders, which covers every California county.