First Time Homebuyer Program (FTHB) - City of Concord

What is the First TimeHomebuyer Program?It is a second mortgage loan program toassist qualified low-income individuals withdown payment assistance for the purchase oftheir first home.What are the maximum incomelimits and FTHB loan amounts?Income eligibility is based on Householdsize. The maximum loan amount isdetermined by the income bracket of thehousehold. Households earning at or below100% of Area Median Income are eligible forup to a $40,000 loan. (Refer to household sizeat all income levels)HouseholdSizeM-616 MAR2014Income limits as of March 201460% ofMedian80% ofMedian100% ofMedian1 $39,270 $47,350 $65,4502 $44,880 $54,100 $74,8003 $50,490 $60,850 $84,1504 $56,100 $67,600 $93,5005 $60,600 $73,050 $101,0006 $65,070 $78,450 $108,4507 $69,570 $83,850 $115,950MaximumLoanAmount$40,000 $30,000 $20,000How much money can I borrow?The maximum loan amount is 20% ofthe home sales price, or appraised value,whichever is lower, up to the maximum of$40,000 based on household income andhousehold size.Who is eligible for a loan?Borrower must be a first time homebuyer,which is a household that has not owned ahome within the past three years. Borrowersmust be able to qualify for a first mortgagefrom a participating lender. The homebuyermust provide a minimum downpaymentof 3% of the purchase price.What homes areeligible for purchase?Homebuyers may purchase an existingsingle-family detached home, condominium,or townhouse located anywhere withinConcord City Limits.What are the Loan Terms?• The loan is a zero-interest, 15-year loan.Loan payments are deferred, with the loanbeing due at the end of 15 years or earlier ifthe house is sold.• The City loan carries shared appreciation,when the home is sold. For example, if theoriginal sales price is $200,000 and theCity loan is $20,000, the City’s “share” ofthe appreciation is 10%. At the time of saleor refinance to pay off the City loan, 10%of the appreciation will need to be paid tothe City. When the City loan is paid off theshared appreciation obligation ceases.What is the minimum FICO score?The minimum FICO score is 640.Inclusionary HousingThe FTHB Program may be used inconjunction with affordable units generatedthrough the Inclusionary Zoning Ordinanceto purchase a new home. The incomeeligibility is based on household size and isallowable up to 120% of the Area MedianIncome cap ($112,200 for a family of 4).In cases where the FTHB Program is used topurchase an Inclusionary unit, the loan maybe increased up to $50,000. This increase isintended to encourage low and moderateincomefamilies to purchase inclusionaryunits. These units are subject to a 45-yeardeed restriction. Although new inclusionaryunits are not currently for sale, units areanticipated to be built over the next few years.

Are there any other requirements?• Borrowers must attend a City-approvedFTHB Counseling Workshop.• A home purchased under the FTHBprogram must be, and remain, theborrower’s principal place of residence.The property cannot be leased or rentedduring the term of the City loan.• Persons with ownership in most real estateassets are not eligible.• Funds are limited. Assistance is providedon a first-come, first-served basis, as longas funds remain available.• A minimum housing cost floor of 28%will be eligible for assistance. This includesall housing costs (PITI, HOA and PMI)divided by gross income.• A maximum debt to income ratio of 45%will be considered.For First Time Home Buyer classes please seethe most recent listings on our webpage:www.cityofconcord.org/living/housing/For additional information please contact theCity’s FTHB Administrator:Hello Housing(415) 689-7746Translation services for non-Englishspeaking applicants are available by makingarrangements ahead of time with our office.CONCORD, CALIFORNIAFirst TimeHomebuyerProgram (FTHB)Servicios de traduccion para solicitantes queno hablan Ingles estan disponibles haciendoareglos anticipado con nuestra oficina.www.cityofconcord.org/living/housing/Our mission is to join with our community tomake Concord a city of the highest quality. We do thisby providing responsive, cost effective and innovativelocal government services.Superior quality of life