CalHFA Forgivable Equity Builder Loan (FEBL)

CalHFA Forgivable Equity Builder Loan (FEBL) is a forgivable loan for homebuyers in California. Up to 10% of purchase price at 0% interest. Fully forgiven after 5 years of continuous owner-occupancy; balance reduced 20% per year if sold before 5 years. Must be used with a CalHFA first mortgage. Income limit: 80% AMI. Up to 10.0% of purchase price in assistance. loan forgiven after required occupancy. Funding comes from State.

CalHFA Forgivable Equity Builder Loan (FEBL) provides assistance worth 10% of the purchase price, as set by the program. The program asks homebuyers to contribute 1% of purchase price (borrower minimum). The program can be combined with other assistance, subject to the rules of each. Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

CalHFA Forgivable Equity Builder Loan (FEBL) is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale or transfer before 5 years (prorated forgiveness). The assistance is recorded in Second position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

CalHFA Forgivable Equity Builder Loan (FEBL) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. On credit, the program states: Minimum 660 FICO score required for all borrowers. A homebuyer education course is required. Residency requirement: Primary residence. Citizenship or immigration status: U.S. citizen, permanent resident alien, or other eligible non-citizen. First-time homebuyer (not owned in 3 yrs); must use CalHFA first mortgage; forgivable after 5 years; income ≤80% AMI.

CalHFA Forgivable Equity Builder Loan (FEBL) limits household income to 80% of the area median income, which varies by county and household size. Low income: household income ≤80% of Area Median Income (AMI). The limit applies to total household income, not only the borrower’s. The program lists a maximum household size of 8. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

CalHFA Forgivable Equity Builder Loan (FEBL) caps the purchase price at $765,000. Eligible property types include Single-family (1-4 unit), FHA-approved condominium, townhome/PUD. New construction is eligible. Manufactured homes are eligible.

CalHFA Forgivable Equity Builder Loan (FEBL) serves homebuyers purchasing anywhere in California.

Applications for CalHFA Forgivable Equity Builder Loan (FEBL) go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through CalHFA Lender Portal (CLMS). Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.