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

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.

Forgivable Equity Builder Loan program:

• Will help homebuyers with a loan of up to 10% of the purchase price

• You don't have to repay the junior loan if you stay in the home for five years

• 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

For more information on how to apply, visit the CalHFA's website.