Forgivable Equity Builder Loan

Home equity has proven to be one of the strongest ways for families to build and pass on intergenerational wealth and CalHFA is committed to improving equitable access to homeownership for all Californians. The Forgivable Equity Builder Loan gives first-time homebuyers a head start on this with immediate equity in their homes via a loan of up to 10% of the purchase price of the home. The loan is forgivable if the borrower continuously occupies the home as their primary residence for five years

The Forgivable Equity Builder Loan is a forgivable subordinate loan program that may only be used with a CalHFA first mortgage.

Borrower Requirements

• Be a first-time homebuyer. See the definition of a?first-time homebuyer.
• Occupy the property as a primary residence; non-occupant co-borrowers are not allowed.
• CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
• Meet county income limits set by Fannie Mae
• Please see?CalHFA’s Income Limits for Forgivable Equity Builder Loan?- Income limits are determined by Fannie Mae and are subject to change without notice. This document is only a guide, and you should contact us?for more information. Gabriella Godde 661-713-3460 [email protected]

Property Requirements

• Be a single-family, one-unit residence, including approved condominium/PUDs
• Guest houses, granny units and in-law quarters may be eligible
• Manufactured housing is permitted
• Condominiums must meet the guidelines of the first mortgage

Potential Tax Consequences

• CalHFA loan servicing will issue a 1099 to borrowers on an annual basis when the loan is partially forgiven. Borrowers should seek the advice of their tax advisor.

Interest Rate

What is the interest rate?

• The Forgivable Equity Builder Loan has an interest rate of zero percent, although you may have to pay back a portion of the loan if you occupy the home for less than five years.?Interest rates on the CalHFA first mortgage will vary depending on your financial circumstances, lender fees, and other factors. Interest rates can also change daily. Call us to find out.

How To Apply

How do I apply for this loan program?

Since CalHFA is not a direct lender, our mortgage products are offered through private loan officers who have been approved & trained by our Agency. YOU can call us- We are certified with CalHFA

What documents should I have ready when contacting a loan officer?

When initially contacting us, you may want to have this list of documents and information available to help answer questions that they will ask you:

• Pay stubs
• Bank statements
• Employment history

Gabriella Godde NMLS # 262012

661-713-3460 [email protected]