First-Time Homebuyer Program
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 down payment that is required by the first mortgage loan program, 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 |
$42,650 |
| 2-person |
$48,750 |
| 3-person |
$54,850 |
| 4-person |
$60,900 |
| 5-person |
$65,800 |
| 6-person |
$70,650 |
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 $580,000.
- 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) 440-1393.
Back to top
CalHome First-Time Homebuyer Mortgage Assistance Program
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 through down payment and mortgage assistance on home purchases in eligible areas of 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 $36,000.00
- “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 for down payment and mortgage assistance
- 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 38%
- 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:
| 1-person |
$42,650 |
| 2-person |
$48,750 |
| 3-person |
$54,850 |
| 4-person |
$60,900 |
| 5-person |
$65,800 |
| 6-person |
$70,650 |
Eligible Properties
Single family homes in eligible areas of the City and County of Sacramento whose sales price does not exceed the current median sales price of a single family home in Sacramento County. Eligible areas are defined as “qualified census tracts” and/or redevelopment areas in the City and County of Sacramento.
Qualified Census Tracts - City and County:
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, 0046.01, 0046.02, 0048.01, 0049.03, 0049.05, 0050.02, 0051.03, 0052.01, 0053.00, 0055.02, 0062.01, 0062.02, 0063.00, 0064.00, 0065.00, 0066.00, 0067.02, 0068.00, 0069.00, 0070.01, 0074.04, 0074.13, 0088.00, 0091.10
Redevelopment Areas – City and County:
Alkali Flat, Army Depot, Del Paso Heights, Franklin Blvd., Florin Road, Mather, McClellan, North Sacramento, Oak Park, Stockton Blvd., 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 our approved lenders. For additional information please call (916) 440-1393.
Back to top
Target Area Homebuyer Program
Effective June 29, 2011, the Target Area Homebuyer Program is suspended until further notice.
The Target Area Homebuyer Program (TAHB) is designed to provide low-to-moderate income homebuyers with down payment and closing cost assistance on home purchases within the following target areas:
- Army Depot Area
- Del Paso Heights Redevelopment Area
- Franklin Boulevard Redevelopment Area
- Oak Park Redevelopment Area
- North Sacramento Redevelopment Area
- Southside Park Area
- Stockton Boulevard Redevelopment Area
Program Features
- buyers do not need to be first-time homebuyers
- assistance is calculated at five percent (5%) of the lesser of the sales price or appraised value of the property – maximum assistance is $5,000
- maximum CLTV ratio (combined loan-to-value ratio) is 105%
- deferred payment promissory note in favor of the Agency at five percent (5%) per annum, simple interest
- thirty (30) year term, or due upon sale, transfer or refinance of the property
- forty-five (45) year regulatory agreement with resale affordability restrictions
- funds may be used to pay a portion of the buyer’s down payment and customary closing costs
- minimum cash contribution from the homebuyer is $500
Eligible Applicants
Homebuyers who:
- are able to qualify for a loan to purchase the home
- attend homebuyer training classes
- will live in the home being purchased
- are defined as low-to-moderate income – households with income less than or equal to one hundred ten percent (110%) of the area median income adjusted for household size. Current income limits are:
| 1-person |
$57,860 |
| 2-person |
$66,110 |
| 3-person |
$74,360 |
| 4-person |
$82,610 |
| 5-person |
$89,320 |
| 6-person |
$95,920 |
Eligible Properties
Single family homes that are located within the program designated target areas.
- property must meet minimum housing quality standards
- sales price of the property may not exceed the Affordable Housing Cost for the area which is currently based upon Moderate Income:
| 2 Bedroom |
$267,722 |
| 3 Bedroom |
$294,669 |
| 4 Bedroom |
$315,628 |
- properties that are tenant-occupied at the time of sale are not eligible
Application Procedure
To apply for the program, please contact any of our approved lenders. For additional information or to obtain a participating lender list please call (916) 440-1393.
Target Area Maps
Back to top
Weekly Funding Update
SHRA provides a weekly update on available funding for its homebuyer programs. The information may be helpful to the public, lenders and their clients who want to know what programs currently have funding and how many homebuyers SHRA may be able to assist in purchasing a home.
Weekly Funding Update (PDF)