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What is a Forgivable Loan Program?
Down Payment Assistance program (DPA) that can be used for more than a down payment!
Forgivable Loan with Mortgage - No Interest Funds for your Home Purchase
The $15,000 Forgivable Loan Program provides eligible buyers with a flexible solution to cover down payment and closing costs. As a forgivable second mortgage, this loan has no monthly payments or interest and is fully forgiven after 5 years, making homeownership easier and more affordable. Whether you’re a first-time buyer or purchasing your next home, this program helps you unlock savings and achieve your homeownership goals faster.
Great news! Qualified buyers can receive up to $15,000 to cover down payment and/or closing costs. Even better, this forgivable loan is 100% forgiven after 5 years as long as you remain in the home.
PROGRAM HIGHLIGHTS
Eligible buyers can use this forgivable loan for down payment or closing costs, up to a loan limit of $806,500. This program helps make homeownership affordable in California’s major metro areas. Note that if a buyer moves out of the home or sells it within 5 years, a portion becomes repayable but buyers are eligible to refinance the home (rate and term) if interest rates drop.
ELIGIBLE PROPERTIES
Eligible properties include condos and single-family homes in major counties across California. Income limits and purchase price limits apply to ensure the program supports homeownership where it’s needed most.
Our $15,000 forgivable home loan program (FLP) may be combined with either a traditional conventional mortgage (min 3% down) or Arbor's Community Mortgage program ($0 Down home loan) and may be used to cover closing costs (recurring, non-recurring fees), down payment and even interest rate buy-downs and prepaid mortgage insurance (MI).
Special Interest Rate Discounts
Buyers may be eligible for one or more interest rate discounts depending on the location of the property and buyer's income.
Census Discount 1
Buyer's receive .125% off their interest rate (automatically) when subject property is in an eligible county and the census tract minority % is > 50% Also known as Majority Minority Census Tracts (MMCT)
Census Discount 2
Buyer's receive .125% off their interest rate (automatically) when subject property is in an eligible county and the census tract median income is "low" or "moderate" (i.e. < 80% area median income).
Also known as Low to Moderate Census Tract (LMCT)
Income Level Discount
Buyer's receive .125% off their interest rate (automatically) when buyer's income is "low" or "moderate." (i.e. < 80% area median income). Also known as Low to Moderate Income Borrower (LMIB)
Bonus Interest Rate Discount
Buyer's receive additional .75% off their interest rate (automatically) when all above criteria are met (total 1.125% off interest rate reduction)
Is our Down Payment Assistance Program (DPA) right for you?
"Achieve homeownership without the burden of saving for years – this program puts you closer to your dream home."
Helping you achieve your home ownership dreams.
Our mission is to expand home ownership opportunities to as many eligible buyers as possible. That's why we focus on developing partnerships and programs to support more buyers. Today's home buyers face unique challenges and we're here to reduce barriers, help educate buyers and partner with Realtors to expand and support opportunity.
* Higher Income Limits for First-Generation Homebuyers
Specifically designed for the unique needs of California Homebuyers
Higher Income Limits for CA Buyers
We believe in making homeownership accessible for everyone, especially those who are the first in their family to take this significant step. That's why we've recently updated our program to offer higher income limits for first-generation home buyers. Whether your parents have never owned a home or you grew up in foster care (or were adopted), this program has higher income limits to support higher California home prices.
Successful buyers usually start with a quick phone call to discuss the process and get your questions answered. I'm here to be your guide through the entire process. Schedule a call today!
2
Complete an Online Application
Complete a short online application to get started. Once completed, you'll receive an email invitation to login to a secure portal where you'll upload supporting documentation including pay stubs, W2's, bank statements and driver's license.
3
Review your options
After we review your application and documentation, we'll determine a price range you qualify for and present you with detailed options so you can see how much your monthly payment is estimated to be for homes in various price ranges. Once you're comfortable with the estimates, we'll issue a rock-solid pre-approval!
4
Shop for your new home!
Once you're pre-approved for the $0 down home loan (and $15K grant), the real fun begins! You'll work with your Realtor to find the right home and structure an offer, and I'll provide payment scenarios and support you throughout the process.
We find you the best rate and mortgage program for your home purchase and refinance goals. Whether you're a first time home buyer or an experienced investor, we have the rates, programs and service to ensure you get the best.
