State Announces Assistance for Homebuyers
In April, the State announced a new program for homeowners, administered by the California Housing Finance Agency (CalHFA), that will provide forgivable loans to homebuyers. Additionally, the California Department of Housing and Community Development (HCD) announced the award of $67 million in grant funding for 33 CalHome developments that will enable lower-income households to become or remain homeowners.
CalHFA’s Forgivable Equity Builder Loan Program provides homebuyers with a loan of up to 10% of the purchase price. No repayment is necessary as long as the new homeowner stays in the home for five years. Eligible households must earn less than 80% of the Area Median Income in the county where the property is located. See the income limits here. This new loan product will be administered through CalHFA’s current network of approved lenders. Interested homebuyers can find the contact for their county at this link.
Thirty-three developments were awarded CalHome funding through a competitive process in response to a September 2021 notice of funding availability. CalHome funding is administered through local governments and nonprofit organizations. The funds can support mortgage assistance to first-time home buyers and rehabilitation assistance to current homeowners whose homes need repair. In addition, funds can be used for acquisition and rehabilitation, homebuyer counseling, self-help mortgage assistance, or technical assistance for self-help homeownership. A list of the awards can be found here.