California Forgivable Equity Builder Loan
This session explains the CalHFA Forgivable Equity Builder Loan. A mortgage lender approved with CalHFA (the California Housing Finance Agency) presents the program and takes questions. It lent first-time buyers 10% of the purchase price toward the down payment, closing costs, or buying out private mortgage insurance (PMI); paired with a buyer's own 10%, that meant 20% down and no PMI. Eligibility at recording: a 640 minimum credit score, no primary residence in the prior 3 years (owning a rental was fine), and household income under 80% of the area's median income, $106,880 in most Bay Area counties and about $118,000 in Santa Clara County. Buyers who stayed five years had the full 10% forgiven; those who sold or refinanced sooner repaid on a tiered schedule, with 20% forgiven per year of occupancy. Q&A covers what a $105,000 earner could buy, the $66 million in funding, and the 5.25% rate at the time.
CalHFA Forgivable Equity Builder Loan · first-time homebuyer down payment assistance California · 10% forgivable loan · CalHFA income limits · Bay Area first-time buyer programs
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