The FTHB helps as a silent second mortgage for those with lower incomes and is forgiven after a period of 15 years. Should a sale of the property occur within the 15-year affordability period, a repayment of the amount of assistance is required.
Buyers need to select a participating lender before applying for a first mortgage with the. The initial loan is needed to be a fully amortized, fixed rate 30-year mortgage. The buyer needs to select the highest first mortgage total they are qualified for.
The Economic Development Agency’s Down Payment Assistance will be documented as a deed in the second standing to the initial mortgage.
The aid is based on the buyer qualifications such as first-time home-buyer standing, low-income criteria per HUD standards (annual income not exceeding 80% of the area’s median income), location/price and all household members being United States Citizens or Non-United States Citizens with appropriate documentation. A legal social security number must be provided by all members of the household.
The price of the property also impacts the determination of eligibility for this down payment assistance program, depending on a percentage of the property’s purchase price validated via an appraisal. Those who are participating in the Section 8 Voucher Program through the Housing Authority are given priority.
The maximum down payment for the home-buyer may be no greater than $75,000 or 20% of the property’s cost, with minimum assistance being$1,500. The maximum home price for a new home is $278,000, while a resale home’s maximum price is $262,000. For a condominium or townhome, the maximum price is $204,000, which is $114,000 for a new manufactured home.
This down payment assistance program can be used to assist in the buying of a new or resale property that is fixed to a permanent foundation, has two bedrooms and is either vacant or occupied by the seller. Only in the event of the tenant being the buyer of the home shall tenant-occupied homes be eligible. Also, properties with spas and in-ground pools are disqualified.
The EDA must verify the home meets its conditions and standards. Riverside County requires a home inspection be conducted for all existing properties, thus repairs may be discovered. Riverside County is not responsible for the cost of the needed repairs.
Buyers have 60 days within the purchase of the property to establish principal residence at the home, as it cannot be used for business or vacation/recreation reasons. They also need to obtain a one-year home warranty when they purchase the home.
Golden Empire Mortgage encourages Riverside County home-buyers interested in this program to call us today at (909) 457-0257.