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Last April, the state of California launched two programs for those interested in buying a home. One of them allows first-time buyers to borrow at 0% interest for the initial deposit .
The program Forgivable Equity Construction Loan (Forgivable Equity Boulder Loan) grants homebuyers a loan of up to 05% of the purchase price.
According to the California Housing Finance Agency (CalHFA , for its acronym in English) the junior loan does not have to be paid if the buyer stays in the house for five years.
Through a statement, the CEO of Tiena Johnson said that the accumulated value of the home has helped many families build intergenerational wealth.
“The Forgivable Equity Construction loan, which gives first-time homebuyers a head start with immediate value in their homes , will help California families build and pass on that wealth with a safe and stable mortgage loan,” he said.
The loan can be used to make a down payment or closing costs.
Conditions to be eligible
Among the requirements, it is requested that the income of the applicants are less than 80% of the median income of the area where the property is located; be a first-time homebuyer; terminate homebuyer education counseling; obtain a certificate of completion through an eligible homebuyer counseling organization; and use the home as a primary residence.
It is important to have pay stubs, bank statements, employment history, and previous tax returns to be able to apply for this loan. For more information you can visit the CalHFA website.
This program can help many people to acquire a property in the midst of the notable increase in price of houses in the United States, in the face of inflation and the increase in interest rates.
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