The California Housing Finance Agency launched a new fixed-rate mortgage program for low and moderate income, first-time homebuyers. The program will provide thousands of dollars in downpayment assistance, the agency said in a statement.
CalPLUS is an FHA-insured, 30-year fixed mortgage that includes a special zero interest junior loan for as much as 3.5% of the first mortgage loan amount to assist borrowers needing funds for a downpayment.
Additionally, the Zero Interest Program downpayment loan does not have to be repaid until the home is sold, refinanced or paid in full.
"Since its inception, CalHFA has focused on helping Californians become homeowners, strengthening communities and neighborhoods," said Claudia Cappio, executive director of CalHFA. “Downpayments continue to be one of today’s biggest obstacles for first-time homebuyers. This new program is aimed at bridging that gap for California families."