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SHRA administers several programs described below which are deferred payment loans that provide assistance for down payment and closing costs.

Maximum assistance and eligibility requirements are detailed in the program features.

First-Time Homebuyer Program
CalHome First-Time Homebuyer Mortgage Assistance Program
Weekly Funding Update
 

First-Time Homebuyer Program

Effective September 1, 2012, the Agency is not accepting applications under the First-Time Homebuyer Program (FTHB).  Please refer to the Agency CalHome First-Time Homebuyer Mortgage Assistance 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.

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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 $40,000
  • “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 for down payment and mortgage assistance
  • first mortgage must be a 30 year fixed rate loan and 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% 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.  The maximum purchase price is currently $199,000.  Eligible areas are defined as “qualified census tracts”, former redevelopment areas, and/or NSP target areas in the City and County of Sacramento.

Unincorporated areas of the County only:

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

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, Walnut Grove Redevelopment Areas, and NSP 1 and NSP3 Target Areas.

To determine if a specific property is located within the approved redevelopment areas, or NSP1 or NSP3 target areas, please visit the County of Sacramento General Map Viewer by clicking on the weblink below.  After entering the specific property address or APN, click on the Search button.  Once results are returned, scroll down the menu located to the left of the screen until you reach "Redevelopment Agency", then click on this tab.

General Map Viewer

 

Application Procedure

To apply for the program, please contact any of our approved lenders.  For additional information please call (916) 440-1393.

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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)