Buying a Home? California Announces New Forgivable Builder Loan Program

Two new initiatives have been launched by the state’s housing authorities to help residents who are having difficulty finding or maintaining a home.

GRAND RAPIDS (Grand Rapids) – Several new programs for prospective and present homeowners have been introduced by two California housing authorities.

A forgiving loan of up to 10% of the home’s purchase price is available for buyers in the state, while $67 million is set aside to help low-income homeowners.

Who Qualifies?

Loan for Forgivable Equity – California Housing Finance Agency (CalHFA)

Residents of California who earn less than 80% of the median income in their county of residence are eligible. Those who earn up to $72,000 in Sacramento County are eligible for the program.

Preferred Loan Officers encourage families who think they may be eligible to get started on the path to homeownership.

After five years, the homebuyer does not have to pay back the junior loan.

A down payment or closing costs, as well as interest rate buydowns, may be covered by the loan.

The Department of Housing and Community Development’s CalHome Award

A total of $67 million in new funds will be made available to 33 CalHome Program projects around the state, which will benefit low- and very-low-income families.

A variety of resources are available to help first-time homebuyers, including deferred-payment loans for down payments and home rehabilitation, as well as homebuyer counseling, self-help mortgage assistance, and technical assistance for self-help homeownership. This includes manufactured homes, not on permanent foundations.

If you’d like to see a complete list of area public and nonprofit organizations that have received CalHome Program grants, please contact us. Just send an email to alex.traverso@hcd.ca.gov.

To learn more about Housing and Community Development’s CalHome program, click here.

Additionally, there are options for homeowners.
California Housing Finance Agency (CalHFA) offers the National Mortgage Settlement Housing Counseling program, which provides counseling services to California families who are in danger of eviction or foreclosure, through housing counselors certified by the United States Department of Housing and Urban Development.

To assist homeowners who have fallen behind on their mortgage payments as a result of the COVID-19 outbreak, the California Housing Finance Agency (CalHFA) has created the California Mortgage Relief Program. The program is completely free, and no money will be refunded for the relief monies.

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