California Down Payment Assistance

Program Highlights

Program Summary

Silent second mortgage loan program for low-income first-time homebuyers; principal and interest payments deferred for term of loan due in 30th year or upon sale or transfer of property, when property ceases to become owner-occupied, or upon repayment or refinancing of first mortgage, whichever comes first.

Program Details

Eligible Buyers: 

All buyers on title must be first-time homebuyers defined as follows: • Someone who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property; or

• A displaced homemaker (see CalHome Definition) who
owned a home; or

• A single parent (unmarried or legally separated) who
owned a home with custody of minor child(ren); or

• An individual who has only owned a mobile home.

Maximum Assistance:  Up to $40,000

Interest Rate:  3%  Simple Interest 

Income Limits:  

Household Size:                     Income:
          1                                 $52,100
          2                                 $59,500
          3                                 $66,950
          4                                 $74,400
          5                                 $80,350
          6                                 $86,300
          7                                 $92,250
          8                                 $98,200

Payments/Recapture:  Silent Second no monthly payments.  Loan is due in 30 years or sooner if property is sold or transferred

Eligible Properties:  Family must purchase an existing single family detached home.  Condominiums & town homes are permitted.

Eligible Cities/Areas:  County of Orange unincorporated areas (not yet incorporated into a city) and the cities of Brea, Cypress, Dana Point, La Palma, Laguna Beach, Laguna Hills, Laguna Woods, Los Alamitos, Placentia, Seal Beach, Stanton, Villa Park and Yorba Linda.

Contribute Home Buyer Comments:  Please keep this site up to date and relevant by making comments if you have used this program or are in the process of using it now.  By sharing this information it helps all Home Buyers stay informed and up to day.

 Program Highlights

Program Summary

First Time Home Buyer Down Payment Assistance is available for First Time Home Buyers within the Counties of San Bernardino and Riverside

Program Details

Eligible Buyers:  First Time Home Buyers - Can not have owned a home in past 3 years

Maximum Assistance:  Up to $25,000

Interest Rate:  3% Simple Interest Loan

Income Limits:  80% of Area Median Income - Income Limits Here

Payments/Recapture:  Silent Second no monthly payments. 

Eligible Properties:  Family must purchase an existing single family detached home.  Condominiums & town homes are permitted.

Eligible Cities/Areas:  Family must purchase in the Counties of San Bernardino or Riverside

Contribute Home Buyer Comments:  Please keep this site up to date and relevant by making comments if you have used this program or are in the process of using it now.  By sharing this information it helps all Home Buyers stay informed and up to day

Program Highlights

Program Summary

First Time Home Buyer Down Payment Assistance is available for First Time Home Buyers within the city limits of San Bernardino.  Down Payment Assistance is a silent second at 0% interest that is forgiven after 45 years.

Program Details

Eligible Buyers:  First Time Home Buyers - Can not have owned a home in past 3 years

Maximum Assistance:  Up to 30% of Purchase Price

Income Limits:  120% of Area Median Income - Income Limits Here

Payments/Recapture:  The loan must be repiad when the home is sold, transferred, refinanced, or converted to a rental property, plus a certain percentage in equity share depending when the home is sold or refinaced within the specified Residency Period.

Eligible Properties:  Family must purchase an existing single family detached home.  Condominiums, manufactured homes on a permanent foundation & town homes are permitted.

Eligible Cities/Areas:  City limits of San Bernardino

Contribute Home Buyer Comments:  Please keep this site up to date and relevant by making comments if you have used this program or are in the process of using it now.  By sharing this information it helps all Home Buyers stay informed and up to day.

Program Highlights

Program Summary

First Time Home Buyer Down Payment Assistance is available for First Time Home Buyers within the city limits of Highland.  Down Payment Assistance is a silent second at 0% interest that is forgiven after 30 years.

Program Details

Eligible Buyers:  First Time Home Buyers - Can not have owned a home in past 3 years

Maximum Benefit:  10% of Purchase Price

Interest Rate:  0%

Income Limits:  120% of Area Median Income - Income Limits Here

Payments/Recapture:  Family can not rent sell or refinance with cash-out before Tenure of Ownership

Eligible Properties:  Family must purchase an existing single family detached home.  Mobile homes, condominiums & town homes NOT permitted.

Eligible Cities/Areas:  City limits of Highland

Contribute Home Buyer Comments:  Please keep this site up to date and relevant by making comments if you have used this program or are in the process of using it now.  By sharing this information it helps all Home Buyers stay informed and up to day.

PROGRAM HIGHLIGHTS

PROGRAM SUMMARY

A Mortgage Credit Certificate (MCC) entitles qualified home buyers to reduce the amount of their federal income tax liability by an amount equal to a portion of the interest paid during the year on a home mortgage. This tax credit allows the buyer to qualify more easily for a loan by increasing the effective income of the buyer. The Riverside County MCC Program provides for a fifteen percent (15%) rate which can be applied to the interest paid on the mortgage loan. The borrower can claim a tax credit equal to 15% of the interest paid during the year.

Since the borrowers taxes are being reduced by the amount of the credit, this increases the take-home pay by the amount of the credit. The buyer takes the remaining 85% interest as a deduction. When underwriting the loan, a lender takes this into consideration and the borrower is able to qualify for a larger loan than would otherwise be possible. The following table illustrates how a MCC increases a borrower’s “effective home buying power”

PROGRAM DETAILS

Maximum Benefit:  Federal Income Tax Credit equal to 15% of mortage interest paid during year 

Maximum Purchase Price:  Outside Target Areas - $429,620 / Inside Target Areas - $525,090

Income Restrictions:  Based on Target Areas and Number of Persons in Household

Payments / Recapture:  The MCC is in effect for the life of the loan as long as the home remains the borrower’s principal residence. The MCC is not transferable to a new loan when refinancing, nor can it be assigned or transferred to a new buyer or another home.

In addition, the MCC Program includes a nine year recapture provision which provides for a return of tax credits taken if the property ceases to be the borrower’s primary residence within nine years from the close of escrow. The amount of tax recapture is determined by formula, and provided to the borrower at the time the application is taken.  After expiration of the nine year period, the borrower may dispense of the property without incurring penalty, but would lose the future benefits of the MCC.   

Eligible Properties:  The residence purchased in conjunction with a MCC must be the borrower’s principal residence and may not be used as a business or vacation home.  The home may be a detached or attached single family home, condominium unit, a co-op unit, or a manufactured home on permanent foundation (new or re-sale).   

Eligible Cities/Areas:  All Unincorporated Areas of Riverside County and within the City Limits of the following jurisdictions:

Ineligible Cities/Areas:   Please note that the following cities are not participating in the County’s MCC Program and MCC’s cannot be issued to purchasers of homes located within the City Limits of these cities:

·        Coachella

·        Palm Springs

·        Indian Wells 

·        Rancho Mirage

HOME BUYER COMMENTS -  If you are a home buyer that has experience with any of these programs.  Please post comments for the benefit of other First Time Home Buyers. 

PROGRAM SUMMARY

The Economic Development Agency (EDA) has a program called the First Time Home Buyer (FTHB) program which provides down payment and closing cost assistance that will allow qualified families to purchase a home.

What is the First Time Home Buyer Down Payment Assistance Program (FTHB)?
The Riverside County FTHB Program is designed to provide assistance to lower income persons in the purchase of their first home. Assistance may be provided for the downpayment in the purchase of a home. The amount of assistance available depends upon the buyer’s qualifications and the price of the home. In general, a buyer may only receive what they need, up to 20 % of the purchase price of the home.

What is the First Time Home Buyer Closing Cost Assistance Program?
The Riverside County FTHB Program is designed to provide closing cost assistance to lower income persons in the purchase of their first home. Assistance may be provided for the closing costs associated with the purchase of a home. The amount of assistance available depends upon the buyer’s qualifications and the price of the home. In general, a buyer may only receive what they need, up to a maximum of six percent (6%) of the purchase price or $10,000, whichever is greater.

 PROGRAM DETAILS

 Income Restrictions: