CalHFA Forgivable equity builder loan (FEBL), is a program that forgives 10% down payments for low-income homebuyers in California. It will help to build home equity and provide financial support for those who are in greatest need.
California Housing Finance Agency ( CalHFA) funds the Forgivable Equity Building Loan (FEBL). Their goal is to provide affordable and equitable financing through support programs for Californians with low and moderate incomes.
Highlights Equity Builder Assistance Program Highlights
| Allowable First Mortgage | – CalHFA Conventional FHA, and USDA |
| Forgivable Equity Building Loan Amount | – 10% of sales price or appraised values (whichever is lower) |
| Income Limit | Maximum 80% of the AMI ( income lookup tool) |
| Repayment | FEBL can be forgiven 100% if the borrower stays in the home for five years. 0% interest rate
– Loans forgiven on an annually pro-rated basis if paid off within 5 years. |
| Maximum CLTV | – 105% |
| Additional DPA | – Not combinable with CalPLUS ZIP and MyHome Assistance |
CalHFA Assistance loan Qualifying Criteria
- You must be a first-time homebuyer and not have owned the property in the past 3 years.
- Minimum Credit Score
- FHA/VA – Score of 640
- Conventional – 680 Score
- Maximal Debt-to Income Ratio
- 45% = Credit Scores Below 700 (and manufactured Homes)
- 50% = Credit Scores over 700
- Max County Loan Limit HERE
- Types of property
- SFR / Condo / PUD / Manufactured
- Primary Owner
- 1 Unit Only
- 1-year Home Warranty
- CalHFA Homebuyer Education Course Requirements
Sacramento
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