SOUTH LAKE TAHOE, Calif. — A state agency on Thursday announced two programs to help Californians become or remain homeowners, through a program that forgives homebuyer loans for up to 10% of the purchase price, and approval of $67 million to fund projects that will help low- and very-low-income households.
“We must use every tool in our toolbox to tackle the housing affordability crisis head-on,” Governor Gavin Newsom said in a press release. “We’re helping new home buyers and making sure current homeowners can keep their homes in good shape, while building the affordable homes our state needs.”
Forgivable Equity Builder Loan – California Housing Finance Agency
The California Housing Finance Agency is launching the Forgivable Equity Builder Loan, which helps homebuyers with a loan of up to 10% of the purchase price. If the buyer stays in the house for five years, they don’t have to pay off the junior loan, making homeownership more accessible to Californians.
The loan is available to Californians whose income is less than 80% of the area median income in the county where the property is located. For example, in Sacramento, a family can earn up to $72,700 and qualify for the loan. In San Diego County, the limit is $76,080, while in Santa Clara County, the limit is $118,960. The loan can be used for down payment or closing costs, including rate redemptions.
“Home equity has proven to be one of the strongest ways for families to create and pass on intergenerational wealth, and CalHFA is committed to improving equitable access to homeownership for all Californians,” said Tiena Johnson Hall, executive director of CalHFA. “The Forgivable Equity Builder Loan, which gives first-time home buyers a head start with immediate equity in their home, will help California families build and pass on that wealth with a secure, stable home loan. “
The Forgivable Equity Builder Loan is available through CalHFA’s Approved Lender Network, which operates in every county in California. Families who believe they are eligible are encouraged to contact a preferred loan officer to take the first steps towards home ownership.
CalHome Awards – Department of Housing and Community Development
The Department of Housing and Community Development on Thursday announced more than $67 million in grants for 33 CalHome Program projects located across California — projects that will eventually support low- and very-low-income households.
In September 2021, HCD announced the availability of funds from the State’s CalHome Program of the Affordable Housing Bond Act of 2018 Trust Fund to fund local public agencies or nonprofit corporations for eligible activities as part of the CalHome program. The funds help individual first-time home buyers through deferred payment loans for down payment assistance, home rehabilitation, including manufactured homes that do not sit on permanent foundations, l acquisition and rehabilitation, advice to homebuyers, independent mortgage assistance or technical assistance for independent homeownership.
“With the recent announcement of our new statewide housing plan, programs like CalHome are more important than ever in helping us reach our ultimate goal of 2.5 million homes in California over the next next eight years,” HCD director Gustavo Velasquez said. “Like our statewide housing plan, CalHome’s goal is not just to create new housing, but also to preserve the existing affordable housing we currently have so that Californians of all income levels can keep a roof over their heads.”
For more information on the CalHome program administered by HCD, visit –https://hcd.ca.gov/grants-funding/active-no-funding/calhome.shtml#purpose.
Other Resources for Owners
Keeping homeowners in their homes is a top priority for the state. Homeowners who are behind on their mortgage payments have additional resources from CalHFA.
CalHFA offers the National Housing Counseling Program for Mortgage Settlementwhich provides counseling services to California families facing eviction or foreclosure, through housing counselors certified by the U.S. Department of Housing and Urban Development.
For Californians who have been financially impacted by the COVID-19 pandemic, CalHFA has established the California Mortgage Relief Program to help landlords catch up on their housing payments. The program is free and relief funds do not need to be repaid.
Source: California Department of Housing and Community Development