First time buyer assistance programs in Northern California’s Bay Area
Posted by cmcgroup on January 16, 2008
Here are links to the websites describing the first-time buyer assistance programs of several cities in the Bay Area. They are basically programs for qualified first time home buyers offered through city agencies in cooperation with participating lenders. These lenders are willing to loan on a home with part of the downpayment coming from various city, county, state and economic development agency programs. The goal is to help first time buyers that may not have down payment funds. Buyer qualification is based on income level. Income of all inhabitants, including roommates, must be no higher than 80% of Area Median Income (AMI). That would be $53,000 for a family of two in Oakland. Properties eligible are single family homes, owner occupied, below a certain price point, for example, $503,500 in Oakland, CA. The home buyer must contribute at least 3% of the home value from personal savings, but can borrow up to 75,000 at 3% simple interest with no payments on the downpayment loan until the home is sold, refinanced, or converted to income property. At that point the loan is to be paid back in full with accumulated interest. Of course, the buyer has to qualify for making payments on the primary 80% loan.
This type of program would enable a first time buyer to borrow up to $75,000 of the purchase price for downpayment. This would be about 15% for a $503,500 home. The lender would lend around the 80% level and the buyer would ante up a minimum of 3%-5%.
For first time home buyers with limited income and limited downpayment these programs help.
Pleasanton, Dublin, Livermore Tri-Valley
First Time California Home Buyer Grants
