The First-Time Homebuyer Program (FTHB) is designed to help low-income
homebuyers by providing financial assistance for down payment and closing costs
on home purchases within the City and 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
- “Limited” FTHB 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
- thirty (30) year loan term, or due upon sale or transfer of the property;
refinancing may be allowed subject to Agency subordination policy
- first mortgage may be FHA insured, conventional, or CalHFA financing.
Please refer to
Agency Homeownership Guidelines for first mortgage restrictions.
- funds may be used to reduce the amount of the first mortgage, including 50
percent of the required down payment, and to pay the buyer’s customary closing
costs
Eligible Applicants:
Homebuyers who:
- 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
- will have a monthly housing debt ratio of not less than 28% and not more
than 35% of gross monthly income (up to 40% may be allowed with compensating factors)
- 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.
Current income limits are:
| 1-person
$39,750 |
|
2-person
$45,450 |
| 3-person
$51,100 |
| 4-person
$56,800 |
| 5-person
$61,350 |
| 6-person
$65,900 |
Eligible Properties:
Single family homes that are located within the City or County of
Sacramento. The program is not available in Citrus Heights and Elk Grove. The
program may be available in Rancho Cordova, subject to the HOME consortium.
- property must meet minimum housing quality standards – an Agency
inspection will be required. Properties built prior to 1978 are subject to
the Lead-Based Paint regulations.
- appraised value may not exceed the HUD 203(b) mortgage limit for the area,
currently $362,790.
- properties that are tenant-occupied as of the date of the purchase offer
are not eligible
Application Procedure:
To apply for the program, please contact any of our
approved lenders. For
additional information please call (916) 264-1500. |
