The CalHFA Forgivable Equity Builder Loan (FEBL) program is a forgivable 10% down payment assistance program available to low income first time homebuyers in California that will help build home equity and generational wealth for those in need.
The Forgivable Equity Builder Loan (FEBL) is funded by the California Housing Finance Agency (CalHFA) who’s goal is to provide equitable and affordable financing through sustainable assistance programs for low and moderate income Californians.
Forgivable Equity Builder Assistance Program Highlights
| Allowable First Mortgage | - CalHFA Conventional, FHA and USDA |
| Forgivable Equity Builder Loan Amount | - 10% of the sales price or appraised value (whichever is less) |
| Income Limit | - Max 80% of the AMI (Income Lookup Tool) |
| Repayment | - FEBL is 100% forgiven if borrower lives in the home for 5 years. 0% interest rate. - If paid off before 5 years, loan will be forgiven on an annual pro-rated basis |
| Maximum CLTV | - 105% |
| Additional DPA | - Cannot be combined with CalPLUS ZIP or MyHome Assistance |
CalHFA Assistance Loan Qualifying Criteria
- Be a first time homebuyer (cannot have owned in the last 3 years)
- Minimum Credit Score
- FHA/VA – 640 score
- Conventional – 680 score
- Max Debt-to-Income Ratio
- 45% = credit scores under 700 (and manufactured homes)
- 50% = credit scores over 700
- Max County Loan Limit HERE
- Property Types
- SFR / Condo / PUD / Manufactured
- Primary Owner Occupied
- 1 Unit only
- 1 Year Home Warranty Required
- CalHFA Homebuyer Education Course Required
Which Homebuyer Assistance Program is best?
Is California’s Forgivable Equity Builder Down Payment Assistance Loan Program the best option for you? Maybe, maybe not, but the only way to determine that it to learn about all the assistance options you are eligible for.
You would be shocked at how many many potential home buyers inquire about assistance programs and their loan officers tell them they are not eligible for any assistance program (steering), when in fact they do!
Why would a lender deceive a homebuyer who inquires about down payment assistance?
- They can’t provide the program or not approved or certified to offer it
- Don’t know about the many other programs
- Don’t want to work harder than they have to
- To prevent the homebuyer from inquiring with another lender about a program
- Don’t feel they can make enough money off you when using an assistance program
Unfortunately, most Loan Officers treat people who need or want to use an assistance program like 2nd class citizens…..like they don’t deserve to own a home if they don’t have 20% down payment.
==> Be an Informed Homebuyer
Take the time to learn how to qualify for a down payment assistance program and contact me to find out which one will benefit you the most.
Answer these questions to discover which assistance program will benefit you the most. I lend in all 58 counties throughout California.
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