California Housing Finance Agency
CalHFA Forgivable Equity Builder
Up to 10% of purchase price — fully forgiven after 5 years of owner-occupancy.
Accepting new reservations as of our last check.
Assistance amount
Up to $30,000 (about 10%)
Structure
Forgivable loan — erased over time
Where it works
California statewide
First-time buyer required
Yes, in most cases
Minimum credit score
660
Funding status
Active · verified August 2026
Who qualifies
- First-time buyer rule: You generally cannot have owned a primary residence in the last three years.
- Credit score: A 660 credit score is the published floor. Your lender may require more.
- Income limits: Income limits are set by county and household size and change every year.
- Purchase price limit: The home cannot exceed roughly $800,000.
- Occupancy: You must live in the home as your primary residence. No investment properties.
- Eligible loans: Conventional
- Homebuyer education: Required before closing. Start it early — certificates take days to issue.
Do you pay it back?
10% forgiven after 5 years occupancy
Forgiveness runs 60 months. Put the completion date on your calendar — leaving one month early can cost you the entire unforgiven balance.
Check whether you qualify for CalHFA Forgivable Equity Builder
The Finder compares your income, household size, credit band, county, and job to this program's published rules and tells you roughly what it is worth in dollars.
How to apply
- Confirm your household income against the current limit for your county and household size.
- Find a lender approved by California Housing Finance Agency. You cannot use just any lender — the agency maintains a participating list.
- Get pre-approved on the first mortgage the program requires.
- Complete the homebuyer education course. Do this early; certificates take days to issue.
- Write the offer with the assistance disclosed and a realistic closing timeline.
Ask RED: “Explain CalHFA Forgivable Equity Builder to me in plain English.”
Ask REDPairing it with a loan
Frequently asked questions
Do I have to pay CalHFA Forgivable Equity Builder back?
10% forgiven after 5 years occupancy
How much money does CalHFA Forgivable Equity Builder provide?
Up to $30,000 (about 10%). The exact figure depends on your loan amount, the option your lender selects, and the funding available at the time you reserve.
What credit score do I need for CalHFA Forgivable Equity Builder?
The published minimum is a 660 credit score. Higher scores usually unlock better pricing on the first mortgage.
Do I have to be a first-time homebuyer to use CalHFA Forgivable Equity Builder?
Yes. You generally cannot have owned a primary residence in the last three years. Veterans and buyers in designated target areas are often exempt — ask the agency.
Which loans can I use with CalHFA Forgivable Equity Builder?
Conventional. The first mortgage has to come from a lender approved by California Housing Finance Agency — you cannot bring your own lender and add the assistance to it.
What are the income limits for CalHFA Forgivable Equity Builder?
Income limits are set by county and household size and are updated annually. Ask your lender to check the current limit for your county before you make an offer.
Do I have to live in the home?
Yes. Assistance programs fund owner-occupied primary residences only. Investment properties and second homes are not eligible.
What credit score do I need for down payment assistance?
Most programs start at 620, some FHA-based programs go to 640, and a handful of manually underwritten paths accept 580. A higher score usually unlocks a larger assistance tier and a better interest rate.
Do I have to be a first-time buyer?
Usually, but 'first-time buyer' almost always means you have not owned a home in the last three years — not that you have never owned one. Some programs waive it entirely for veterans, for buyers in targeted areas, or for certain professions.
Other programs California buyers can use
Chenoa Fund Down Payment Assistance
Chenoa Fund · Nationwide
Up to $25,000 (about 5%)
A nationwide 3.5% or 5% second mortgage that covers the entire FHA down payment, available in nearly every state.
Program detailsCalHFA Dream For All Shared Appreciation Loan
CalHFA · California statewide
Up to $150,000 (about 20%)
Up to 20% of the purchase price toward down payment and closing costs, repaid with a share of appreciation.
Program detailsGSFA Platinum Down Payment Assistance
GSFA · California statewide
Up to $27,000 (about 5.5%)
Up to 5.5% of the loan amount as a gift or forgivable second, with no first-time buyer requirement.
Program detailsCalHFA MyHome Assistance
CalHFA · California statewide
Up to $15,000 (about 3.5%)
Up to 3.5% of price for down payment or closing costs. Deferred silent second — no monthly payment.
Program detailsRelated resources
- The complete California homebuyer guide
- All California assistance programs
- How much home can I afford?
- FHA loan requirements
- Conventional loan requirements
- Run my Readiness Score
- Down Payment Assistance Finder
- How to use the DPA Finder (user guide)
- The Homebuyer's Knowledge Center
- Down payment assistance explained
- Ask RED a question
ReadinessIQ is a Homebuyer Readiness Platform, not the agency that funds these programs. We publish what the agencies publish, link to the official source, and tell you when a rule is likely to change. The agency and your lender make the final call on who qualifies.