New California program lets first-time homebuyers borrow down payment at 0% interest

There is a new program that was developed in California that will let first time homebuyers borrow the down payment for a house with a 0% interest rate. The program is called the Forgivable Equity Builder Loan and will help provide a loan of up to 10% of the purchase price of the home. Gavin Newsome talked about the program in April and how the housing affordability crisis needs to be tackled. If the home buyer stays in the home for five years, they don’t even have to repay the loan either.

Key Takeaways:

• Governor Gavin Newsom said the programs aims to address California’s housing affordability crisis.
• If the homebuyer stays in the home for five years, they do not have to repay the junior loan.
• First-time homebuyers whose income is less than 80% of the Area Median Income in the county are eligible.

“The loan has an interest rate of 0%, according to the California Housing Finance Agency.”

Read more: https://ktla.com/news/california/new-california-program-lets-1st-time-homebuyers-borrow-down-payment-at-0-interest/