California launches new program for first-time homebuyers

California has just launched a new program to help first-time homebuyers with a down payment. 

It's called California's Forgivable Equity Builder Loan. 

The program allows qualified, first-time buyers to borrow up to 10% of a home’s purchase price, and have the debt forgiven if the buyer lives in the home for five years. The loans are available to middle-income families making less than 80% of their county’s annual median income.

Non-occupant co-borrowers do not qualify. 

The Forgivable Equity Builder loan can be applied to single-family, one-unit residences, such as condominiums, manufactured housing, PUD (planned urban development) homes, and some guest houses, granny units, and in-law quarters may be eligible.

According to Zillow, at the state level, California's housing market remains the most valuable in the country, with a total value of $9.24 trillion as of last December, accounting for more than a fifth of the national total.

According to the California Association of Realtors' Traditional Housing Affordability Index (HAI), the percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in the fourth-quarter of 2021 inched up to 25% from 24% in the third quarter of 2021.

In March 2022, the median price in all the major regions of California continued to grow on a year-over-year basis, with all of them increasing by double-digits and four of them reaching a new record high.

To learn more or apply, visit CalHFA.