City of Monterey First Time Home Buyer, Down Payment Assistance Program

Updated 2/11/2010- I just called today, funding is currently available.

First Time Home Buyers Down Payment Assistance Program

CURRENTLY, THERE IS NO FUNDING AVAILABLE FOR THIS PROGRAM AND WE ARE NOT ACCEPTING APPLICATIONS AT THIS TIME.

The County of Monterey has HOME and CalHOME funds provided by the State of California for a First Time Homebuyer Program. The County will be able to lend qualified households part of the downpayment for a home in the unincorporated areas of the County.

Amount of Loan:

The amount the County will loan is based on the amount of the first mortgage for which the applicant qualifies. HOME Program loan maximums are also based on the number of bedrooms in the home.

The buyer must contribute towards the downpayment. The standard requirement is 3% of the purchase price unless the buyer meets all other criteria and demonstrates financial hardship.

Payments are deferred for the first 5 years of the 30 year term for loans under the HOME Program. The interest rate is 3% per year. CalHOME loan payments are deferred for 30 years.

Maximum Sales Price: The maximum sales price of the home cannot exceed $355,000 or the limit approved by the State.

Qualifying Areas:

The home must be in an unincorporated area of Monterey County to qualify for the program. Some of the eligible un-incorporated areas include Boronda, Chualar, Castroville, Pajaro, and Prunedale.

Income Limits: First Time Homebuyer assistance is available to households with annual incomes at or below 80% of the median income for Monterey County.
Annual income is based on the gross amount of income expected for the year by all adults in the family and evidenced by federal Income Tax Returns, W-2 forms, Form 1099’s, recent pay stubs and other income verification as described in 24 CFR Part 92.203 (b) (1-3).

Buyer Application Guidelines:

Fill out a Program Interest Form and send it in to our office at:

Redevelopment & Housing Office
168 W. Alisal St, 3rd Floor
Salinas, CA 93901

You may request a Program Interest Form by mail if you’d prefer, simply call the County’s Housing and Redevelopment office at (831) 755-5390.

The County will send you a letter informing you whether or not you are eligible for the First Time Homebuyer program.

You should arrange to meet with a lender who is approved by the California Housing Finance Agency (CalHFA). The lender will require that you bring income verification. At the meeting, the lender will tell you the maximum loan amount for which you are qualified and the estimated amount of the County’s loan. You will be required to pay the lender for a credit report.

If your total houshold income is not enough to purchase a home, you may still be able to buy a home using a co-borrower. If you have a co-borrower, you both should meet with the lender and be pre-qualified before you look for a home.

Select a realtor and ask them to help you find a home in your price range. Once you find a home, you and your realtor will write a purchase contract and the realtor will take it to the seller. When the seller has accepted the offer to purchase the home, the realtor will open an escrow for you at a title company.

The loan approval and escrow will take about 60 days. During this period, you will need to pay your part of the down payment to the title company.

CURRENTLY, THERE IS NO FUNDING AVAILABLE FOR THIS PROGRAM AND WE ARE NOT ACCEPTING APPLICATIONS AT THIS TIME.

To view the City of Monterey’s website, please CLICK HERE

Related posts:

1. Community Housing Trust of Monterey County
2. City of Compton First Time Home Buyer’s Assistance Program
3. City of Oakdale First Time Home Buyer, Down Payment Assistance Program

Tagged as: City of Monterey, City Programs, down payment assistance, first time home buyer