Interest-Free Down Payment Assistance Program for Low-Income Californians: What You Need to Know

The California Housing Finance Agency has introduced a new program to assist low-income Californians in buying their first home. The Forgivable Equity Builder Loan offers an interest-free loan for up to 10% of the home’s purchase price to use toward the down payment. If certain criteria are met, the loan does not have to be paid back.

To qualify for the loan, applicants must be first-time home buyers with a household income of no more than 80% of the median income in their area, typically considered low-income. In Los Angeles County, this means a household income of $68,880 or less. The loan is forgivable if the homeowner stays in the home for five years, otherwise, a portion of the money will need to be repaid.

Interested individuals can apply for the program through approved private lenders listed on the California Housing Finance Agency’s website. The down payment assistance can be used to purchase a single-family house, townhome, or condo anywhere in California. The program aims to make homeownership more accessible in a challenging housing market.

The state’s initiative comes in response to skyrocketing home prices, which have made it increasingly difficult for many Californians to afford a home. The California Housing Finance Agency is committed to improving equitable access to homeownership for all residents.

For more information on the Forgivable Equity Builder Loan program and how to apply, visit the California Housing Finance Agency’s website. The program is part of a larger effort to provide support and resources to first-time home buyers in Southern California.