STATEWIDE – The California Housing Finance Agency announced, Tuesday, a new program to help first-time home buyers get into a home. The Forgivable Equity Builder Loan provides homebuyers a forgivable loan up to 10% of the purchase price to use for the down payment.
The loan is available to middle-income families making less than 80% of their county’s annual median income. The 80% median income limit for San Bernardino county is $62,000.
Forgivable Equity Builder loan requirements
The loan is forgivable if the homebuyer occupies the home for 5 years. Non-occupant co-borrowers are not allowed. Single-family, one-unit residence, and condominiums are eligible properties. Guest houses, granny units and in-law quarters may also be eligible.
CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
California Housing Price Increase
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.
According to Zillow, the average home price in Victorville is $406,826 — up 28.5% from last year.
The Forgivable Equity Builder loan is 0% interest although a portion of the loan will have to be paid back if the home is occupied for less than five years.
For more information about the Forgivable Equity Builder loan visit https://www.calhfa.ca.gov/homebuyer/programs/forgivable.htm