Watch CBS News
By Darleene Powells
/ CBS Los Angeles
One of the biggest hurdles in buying a home is coming up with a hefty down payment, and California has a new program to help first-time homebuyers jump that hurdle.
California’s Forgivable Equity Builder loan allows first-time homebuyers who have enough income for a monthly mortgage payment to borrow up to 10% of a home’s purchase price to buy a house outright. The loan has an interest rate of zero percent, but borrowers who don’t occupy the home for at least five years may have to repay the loan.
The new effort comes as real estate prices have hit record highs in California, and rising interest rates have pushed monthly payments up hundreds of dollars. A standard down payment of 20% for a home in California can cost upwards of $100,000.
The program is open to first-time homebuyers who occupy the property as a primary resident; non-occupant co-borrowers do not qualify. The Forgivable Equity Builder loan can be applied to single-family, one-unit residences, such as condominiums, manufactured housing, PUD (planned urban development) homes, and some guest houses, granny units, and in-law quarters may be eligible.
To learn more or apply, visit CalHFA.
First published on May 3, 2022 / 9:49 AM
© 2022 CBS Broadcasting Inc. All Rights Reserved.
©2022 CBS Broadcasting Inc. All Rights Reserved.
About Author
