California offers new loan program for first-time homebuyers – NBC Los Angeles
Would you like to buy your first home but don’t have enough money?
California is offering a new home loan program for first-time homebuyers who have a down payment to pay.
That 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.
LOANS FOR FIRST 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, he does not have to repay the loan.
Loans can be used for down payments or closing costs, including interest rate cuts.
Who qualifies for the loan?
To get the loan, the person must meet the following requirements:
- Have an income less than 80% of the median income for the area in the county where the property is located.
- Be a first time home buyer.
- The property must be the primary residence.
- Complete the Homebuyer Educational Counseling and receive a certificate of completion from a legitimate homebuyer counseling organization.
HOW DO I APPLY FOR THIS LOAN PROGRAM?
CalHFA offers mortgage loans through private agents who are licensed and trained by the agency.
To check with the CalHFA Approved Lender in your area, Click here.
WHAT DOCUMENTS SHOULD I HAVE WHEN CONTACTING A LOAN OFFICER?
It’s important to have these documents on hand when you first approach a loan officer to help answer the questions you’ll be asked:
- bank statements
- Professional background
- Previous tax returns
For more information on the home equity program, go to Click here.