CalHFA Forgivable Equity Builder Loan (FEBL)

What is 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.

How much assistance does it provide?

CalHFA Forgivable Equity Builder Loan (FEBL) provides assistance worth 10% of the purchase price, as set by the program.

• The program asks buyers 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.

Do you have to pay it back?

CalHFA Forgivable Equity Builder Loan (FEBL) is forgiven after 5 years, so a buyer 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.

Who qualifies?

CalHFA Forgivable Equity Builder Loan (FEBL) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Where does it apply?

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

How do you apply?

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.

1. 1

   Take a homebuyer education course

   Required by the program before funds are reserved.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through CalHFA Lender Portal (CLMS), and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.