New California program for first-time homebuyers will let you borrow down payment at 0% interest

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New California program for first-time homebuyers will let you borrow down payment at 0% interest
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The state of California launched two programs last month to help those interested in becoming homeowners, and one of them allows first-time homebuyers to borrow a down payment at 0% interest.

According to the California Housing Finance Agency, the Forgivable Equity Builder Loan program will help homebuyers with a loan of up to 10% of the purchase price.NOTE: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. It can be used for down payment or closing costs, including rate buydowns.

"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," said CalHFA's Executive Director Tiena Johnson in a statement released earlier this month.

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