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CalHome First-Time Homebuyer Mortgage Assistance

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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 $36,000
• “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 City and unincorporated County of Sacramento whose sales price does not exceed the HUD 203(b) mortgage limit for the area which is currently $580,000.  Eligible areas are defined as “qualified census tracts” and/or redevelopment areas in the City of Sacramento.

Qualified Census Tracts - City of Sacramento:

The “qualified census tracts” are:  0005.00, 0006.00, 0007.00, 0010.00, 0011.00, 0012.00, 0018.00, 0020.00, 0021.00, 0022.00, 0027.00, 0028.00, 0032.01, 0036.00, 0037.00, 0041.00, 0042.02, 0042.03, 0043.00, 0044.01, 0044.02, 0045.00, 0048.01, 0049.03, 0049.05, 0052.01, 0053.00, 0055.02, 0062.02, 0063.00, 0064.00, 0065.00, 0066.00, 0067.02, 0068.00, 0069.00, 0070.01

Redevelopment Areas – City of Sacramento:

Alkaki Flat, Army Depot, Del Paso Heights, Franklin Blvd., North Sacramento, Oak Park, Stockton Blvd., and 65th Street, 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:

To apply for the program, please contact any of the lenders on the SHRA Approved Lender List.  For additional information please call (916) 440-1393.