Do you want to buy a first home, but you don’t have enough money?
California offers a new home loan program for first-time homebuyers who need to pay a down payment.
The California Housing Finance Agency (CalHFA) offers the Forgivable Equity Builder Loan program, where first-time homeowners can obtain forgivable loans for up to 10 percent of the purchase price.
LOAN FOR FIRST TIME HOME BUYERS
The California Housing Finance Agency (CalHFA) offers a loan program for up to 10% of the purchase price with 0% interest for those who qualify.
If the borrower stays in the home for a period of five years, they will not have to repay the loan.
Loans can be used for down payment or closing costs, including rate reductions.
WHO QUALIFIES FOR THE LOAN?
To obtain the loan, the person must meet the following requirements:
- 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 the homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
HOW DO I APPLY FOR THIS LOAN PROGRAM?
CalHFA offers mortgage loans through private agents who have been approved and trained by the agency.
To check with the CalHFA-approved lender in your area, click here.
WHAT DOCUMENTS SHOULD I HAVE WHEN I CONTACT A LOAN OFFICER?
It is important to have these documents available when you initially contact a loan officer in order to help answer the questions you will be asked:
- Pay stubs
- Bank statements
- Job history
- Previous tax returns
For more information on the Homeowner Loan Program, click here.