The New California program for first-time homebuyers will let you borrow a down payment at 0% interest!Return to Blog
Categories: Homes Planning Real Estate
Photo by Kindel Media.
California launched two programs last month to help those interested in becoming homeowners, and one allows first-time homebuyers to borrow a down payment at 0% interest.
According to the California Housing Finance Agency, the Forgivable Equity Builder Loan program will help homebuyers with a loan of up to 10% of the purchase price. The state says you don't have to repay the junior loan if you stay in the home for five years.
The loan is available to Californians whose income is less than 80% of the area median income in the property's county and used for down payment or closing costs, including rate buydowns.
CalHFA's Executive Director Tiena Johnson said in a statement released earlier this month. "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."
The loan is available through CalHFA's network of lenders (which covers every California county.)
For more information on how to apply, visit CalHFA's website.