Forgivable Equity Builder Loan Program for Down Payment Help

The Forgiveable Equity Builder Loan Program is a game-changer for many homebuyers. This program offers down payment help to eligible borrowers.

The loan amount can be up to 20% of the home's purchase price, which can significantly reduce the amount of money you need to save for a down payment.

For more insights, see: What Is Loan Amount

A Forgivable Equity Builder Loan is a type of loan that allows homeowners to borrow money to make improvements to their property, with the potential to have the loan forgiven after a certain period of time.

These loans are typically offered by government agencies or non-profit organizations to help low- to moderate-income homeowners improve their homes and increase their equity.

Homeowners can use the funds from a Forgivable Equity Builder Loan to make a variety of improvements, including energy-efficient upgrades, accessibility modifications, and other home repairs.

The loan amount can vary, but it's often based on the property's value and the borrower's income.

In exchange for the loan, the borrower agrees to occupy the property as their primary residence for a specified period, usually 5-10 years.

If the borrower meets the requirements, the loan is forgiven, and the borrower owns the home free and clear.

Explore further: Owner Builder

To qualify for a Forgivable Equity Builder Loan, you must be a first-time homebuyer in California. You must have a minimum credit score of 660.

You'll need to occupy the purchased property as your primary residence. The property must be a single-family, one-unit residence, including approved condominiums, planned unit developments, and manufactured housing.

To calculate your maximum monthly expenses, divide your county's income limit by 12 and multiply the result by 45%. For example, in Orange County, the income limit is $78,320, so your monthly expenses must be less than $2,937.

You must earn less than 80% of your county's annual median income. This income limit varies by county, so be sure to check the Fannie Mae or CalHFA website for the most up-to-date information.

Here are the borrower requirements for the Forgivable Equity Builder Loan:

The property requirements are:

The median home price in California is a staggering $693,800, which is a whopping $293,094 more than the national average.

Many mortgage lenders in California require a 20% down payment, which can be as high as $138,760, making it difficult for low-income families to afford their first home.

If you qualify for a low-down-payment mortgage program, you could pay as little as 0% or 3% for a down payment, which would be a huge relief for many prospective homebuyers.

The Forgivable Equity Builder Loan gives first-time homebuyers a head start on building equity in their homes with a loan of up to 10% of the purchase price, which can be a game-changer for those struggling to save for a down payment.

This loan comes with a 0 percent interest rate and is forgivable if the borrower stays in the home for more than five years, making it a great option for those who plan to make California their permanent home.

To qualify for the Forgivable Equity Builder Loan, you'll need to be a first-time homebuyer and purchase a home to live in, which is a requirement of the CalHFA program.

The loan is a forgivable subordinate loan program that may only be used with a CalHFA first mortgage, so be sure to check the eligibility requirements before applying.

For another approach, see: Types of Home Loans First Time Buyers

To get started with the Forgivable Equity Builder Loan, simply click here to visit the New Way Mortgage website or give them a call at 916-465-6639 to determine your eligibility for this grant.

You can also visit the California Housing Finance Agency website to look up county income limits, which are subject to change, so be sure to check back often.

To qualify for the Forgivable Equity Builder Loan, you'll need to meet the following requirements:

To apply for a loan, you can start by visiting the website of New Way Mortgage, an approved mortgage lender with the California Housing Finance Agency. They offer the 10% Forgivable Equity Builder Loan.

You can also give them a call at 916-465-6639 to determine your eligibility for this grant that can give you the freedom and benefits of homeownership.

The interest rate on the Forgivable Equity Builder Loan is zero percent, but be aware that you may still have to pay back a portion of the loan if you occupy the home for less than five years.

Interest rates on the CalHFA first mortgage can vary depending on your financial circumstances and lender fees. This means that your interest rate may not be fixed, and it's essential to check with a Preferred Loan Officer for an accurate rate quote.

Interest rates can change daily, so it's crucial to stay informed and up-to-date on the current rates.

To get the most accurate information, it's best to consult with a financial expert or a Preferred Loan Officer.

Here's a quick rundown of the interest rates you can expect: