Kirk M West's Blog

Funding is now available for County properties.

Call (916) 893-9666 if you feel you fit into these criteria

The CalHome First-Time Homebuyer Mortgage Assistance Program is designed to provide financial help to low-income homebuyers by reducing the amount of the first mortgage loan and helping to pay non-recurring closing costs on home purchases in eligible areas of the County of Sacramento.   

Program Features:

• deferred payment loan secured by a deed of trust
• assistance is calculated at 20 percent of the purchase price to a maximum of $40,000 for the 2006 contract program
• assistance is calculated at 20 percent of the purchase price to a maximum of $36,000 for the 2007 contract program
• “Limited” CalHome assistance – when used in conjunction with special sales programs, the assistance is limited to 10 percent of the purchase price to a maximum of $20,000
• 3% simple interest – principal and interest are deferred for the term of the loan
• 30 year loan term (equal to the term of the first mortgage)
• loan is due upon sale or transfer of property, when the property ceases to be owner-occupied, or upon the loan maturity date – the loan is not assumable; refinancing may be allowed subject to Agency subordination policy
• funds may be used to reduce the amount of the first mortgage and to pay non-recurring closing costs
• first mortgage must be a 30 year loan and may be a fixed rate or an adjustable rate mortgage; however, the first mortgage loan shall not include provisions for negative amortization, principal increases, balloon payments, or deferred interest
• first mortgage may be FHA, conventional, or CalHFA financing.
• first mortgage must have an impound account for the payment of taxes, assessments and hazard insurance for the entire 30-year term.

Eligible Applicants:

Homebuyers who:

• meet CalHome underwriting guidelines for credit
• will have a monthly housing debt ratio of not less than 28% and not more than 35% (up to 40% may be allowed with compensating factors)
• are first-time homebuyers (have not owned a home within the preceding three years, or meet the definition of a displaced homemaker or a single parent)
• are able to qualify for a loan to purchase the home
• attend homebuyer education classes
• will live in the home being purchased
• are defined as low-income – households with income less than or equal to eighty percent (80%) of the area median income adjusted for household size.  Income also includes income from assets over $5,000 calculated at 2.5% of the value of the asset.  Current income limits are:

Eligible Properties:

Single family homes in eligible areas of the County of Sacramento whose sales price does not exceed the HUD 203(b) mortgage limit for the area which is currently $580,000. 

For the 2006 contract program, eligible areas are defined as the unincorporated areas of Sacramento County.

For the 2007 contract program, eligible areas are defined as “qualified census tracts” and/or redevelopment areas in the unincorporated County of Sacramento.

Qualified Census Tracts - County:

The “qualified census tracts” are:  0044.01, 0044.02, 0045.00, 0046.01, 0046.02, 0048.01, 0050.02, 0051.03, 0055.02, 0062.01, 0062.02, 0074.04, 0074.13, 0088.00, 0091.10

Redevelopment Areas – County:

Franklin Blvd., Florin Road, Mather, McClellan, Stockton Blvd., and Walnut Grove Redevelopment Areas.

Unincorporated areas of the County only:

The program is not available in Citrus Heights, Elk Grove, Galt, Folsom, Rancho Cordova or Isleton.

Application Procedure:  Call (916) 893-9666