New California program for first-time home buyers allows you to borrow down payment at 0% interest

SACRAMENTO, California (KABC) – The state of California last month launched two programs to help those interested in becoming homeowners, one of which allows first-time home buyers to borrow a down payment at 0% interest.

According to the California Housing Finance Agency, the Forgivable Equity Builder Loan program will assist home buyers with a loan of up to 10% of the purchase price.

The state says that you do not have to repay the junior loan if you stay in the home for five years.

NOTE: The video above is from an earlier report that the housing market is returning to pre-pandemic levels.

The loan is available to Californians whose income is less than 80% of the area̵[ads1]7;s median income in the county where the property is located. It can be used for prepayment or closing costs, including interest rate purchases.

“Home ownership has proven to be one of the strongest ways for families to build and transfer wealth between generations, and CalHFA is committed to improving equitable access to home ownership for all California residents,” CalHFA CEO Tiena Johnson said in a statement. released earlier this month. “The Forgivable Equity Builder Loan, which gives first-time homebuyers a head start with instant equity in their homes, will help California families build and pass on that wealth with a secure, stable mortgage.”

The loan is available through CalHFA’s network of lenders, which covers each California county.

For more information on how to apply, visit CalHFA’s website.

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