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State approves funding for county first-time homebuyers

With mortgage interest rates less than 5 percent and housing prices at record lows, local first-time house hunters with modest family incomes may benefit from El Dorado County’s First-Time Homebuyer Loan Program.

The El Dorado County Health and Human Services Agency’s Housing Program has received approval for $800,000 from the State’s Home Investment Partnerships Program (HOME) fund to provide low-interest rate deferred payment loans to eligible homebuyers to help with the purchase of a home in the unincorporated areas of El Dorado County. Funding for this program is provided through the California Department of Housing and Community Development HOME Program and the county’s revolving housing loan fund.

Eligible applicants must provide a down payment, the greater of $2,500 or 2 percent based on the purchase price of a home. Individuals must also qualify for a fixed-rate 30-year first mortgage through a commercial lender and have a total household income at or below 80 percent of the area median income based on household size.

With a few exceptions, eligible applicants cannot have owned a home or been on title to real property within the last three years. Current annual maximum household income limits are: one person, $42,650; two persons, $48,750; three persons, $54,850; four persons, $60,900; five persons, $65,800; six persons, $70,650; seven persons, $75,550; eight persons, $80,400.

The county’s First-Time Homebuyer Loan Program is designed as a gap financing program for applicants who would not qualify for a bank loan sufficient to purchase a home due to limited income. The loan program includes loan amounts up to $80,000 at 3 percent interest with payments deferred for 30 years. Loans are available while funding lasts to eligible buyers on a first-come, first-served basis after completing an application process.

For more information about this program visit www.edcgov.us or call the El Dorado County Housing, Community and Economic Development Block Grant Programs at (530) 642-4864.

Short URL: http://www.villagelife.com/?p=18557

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Posted by on Mar 20 2012.
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