Do you want to buy a first home, but you don’t have enough money?
California is offering a new home loan program for first-time home buyers who need to pay a down payment.
The California Housing Finance Agency (CalHFA) offers the Forgivable Equity Builder Loan program, where new homeowners can obtain repayable loans for up to 10% of the purchase price.
READY FOR HOME BUYERS
The California Housing Finance Agency (CalHFA) offers a loan program of up to 10% of the purchase price with 0% interest for those who qualify.
If the borrower stays in the house for a period of five years, he will not have to repay the loan.
Loans can be used for down payment or closing costs, including rate reductions.
WHO IS ENTITLED TO THE LOAN?
To obtain the loan, the person must meet the following conditions:
- Have an income less than 80% of the area median income in the county where the property is located.
- Be a first-time home buyer.
- The property must be the primary residence.
- Complete homebuyer education counseling and earn a certificate of completion through an eligible homebuyer counseling organization.
HOW TO APPLY FOR THIS LOAN PROGRAM?
CalHFA offers mortgages through private agents licensed and trained by the agency.
To check with the CalHFA-approved lender in your area, click here.
WHAT DOCUMENTS DO I NEED TO HAVE WHEN CONTACTING A LOAN AGENT?
It is important to have these documents available when you contact a loan officer for the first time to help answer the questions you will be asked:
- Bank statements
- Work history
- Previous tax returns
For more information on the homeowner loan program, click here.