Revised January 2006 G:\DS\FTHM Brochure
CITY OF SAN LEANDRO
First-Time Homebuyer Program
835 East 14th Street San Leandro, CA 94577
What is the First-Time Homebuyer Program?
It is a second mortgage loan program to assist qualified low- and moderate-income borrowers with the purchase of their first home.
The funds are used toward a down payment and /or closing costs. The program funding source is the Redevelopment Agency's Housing Set-Aside Fund.
Who is eligible for a loan?
Borrower must be a first time homebuyer: a household that has not owned its principle place of residence within the last three years.
The household's combined income must be at or below 120% of the Area Median Income, adjusted by household size. The income limits follow the State Office of Housing and Community Development guidelines.
2006 Income Limitations
Household size 1 max income $69,000
Household size 2 max income $78,900
Household size 3 max income $88,775
Household size 4 max income $98,650
Household size 5+ max income $106,526
Is there a maximum sale price?
Yes the Redevelopments Law proghbits the new homebuyer from paying more than 35% of their income for housing costs, including house payments, interest, insurance, maintance and utilities. Therefore, there is a maximun amount for the mortgage and hence a maximum sale price that is allowed.
What are the loan terms and interest rates?
It is a twenty-year loan with a fixed rate of 3% per year.
Loan repayment is deferred for the first five years with no interest accrual during that period. Payments begin in the 6th year and continue through the end of the twenty-year term. The buyer must repay the loan if the property is sold, transferred, refinanced to take cash out, or converted to rental property.
Homebuyers who earn less than 80% of the area median may choose to defer repayment of loan and accrued interest until sale, or transfer of property, refinance for cash out, or conversion to rental property.
Will training workshops be provided?
The participating lenders will offer training workshops at no cost to prospective first-time buyers. The workshops cover topics related to purchasing a home:
·
Mortgage loans
·Credit history evaluations
·Role of professionals in the home buying processBorrowers must attend a workshop prior to the loan application review.
How are loan applications prioritized?
Priority is given to homebuyers who have lived or worked in the City of San Leandro for the past two (2) years.
Funds are limited. Assistance is provided on a first-come, first-served basis, and as long as funds remain available.
Borrowers must qualify for the first mortgage to be eligible for the First-Time Homebuyer Program.
What type of home can I purchase?
Homebuyers may purchase a new or existing single-family detached home, condominium, or townhouse unit.
The home must be located within the City of San Leandro municipal boundaries.
What is the application process?
Step 1 Borrower locates an eligible unit within the City of San Leandro.
Step 2Borrower enters into a Purchase Contract.
Step 3Borrower selects the Lender and attends homebuyer workshop.
Step 4Borrower submits complete application to lender.
Step 5Lender submits application packet to the Agency for review.
Step 6Agency approves or denies the First Time Homebuyer loan application within five working days of receipt of completed application.
Step 7Escrow officer drafts loan documents along with first mortgage documents.
Step 8Borrower signs loan documents at close of escrow.
Where can I apply?
You may apply at any one of the PARTICIPATING LENDERS listed in the enclosed supplement.
For additional information please contact:
City of San Leandro
Community Development Department
(510) 577-6004
Or Call Scott Harrison for list of
approved lenders at 510-388-4536
