Owning Your First Home

Assistance in the form of Down Payment Assistance Programs in our local area.

First Time Buyers have a new incentive to help towards owning a home. We currently have very attractive conditions that should help new buyers enter the market and achieve their goal of owning their first home. There are local Down Payment Assistance Programs and new Loan Programs designed to help you own your first home.

The market current provides and supports opportunity for you:

• Historically Low Interest Rates
• Real Estate is a Reliable Investment ($10,000 dollar investment in Stock Market in a normal market typically nets 12% ROI over 10 years, $10,000 dollar investment in the Stock Market in a bull market nets a 25% ROI over 10 years, and a $10,000 investment in a home in a normal market nets a 100% ROI over a 10 year period. Real estate is a more reliable investment than stocks. Source: NAR
• It’s a Buyer’s Market–Plenty of Supply and Little Demand
• The Buy Smart Time–typically a good time to buy a home is when the market is recovering.
• Rates are back where they were at historically lows to make mortgage payments affordable.
• There is a wide selection of houses which is good news for buyers when they have good home to choose from.
• Homeowners in it for the long term nearly always come out ahead when building wealth.
• It is a good time to take advantage of the strong local economy.
• Home sales have slowed giving buyers the advantage.

Additionally, the Government is offering a $7,500 tax credit for First Time Home Buyers!

Who is eligible? The $7,500 tax credit is available for first time home buyers only. The law defines a first time home buyer as a buyer who has not owned a home during the past three years. All U.S. citizens who file taxes are eligible to participate in the program.

What Type of Homes Qualify? All homes within the U.S., whether single-family, town homes or condos will qualify. There are conditions. The home must be used as a primary residence, and the buyer has not owned a home in the prior three years. The tax credit includes newly constructed home.

If you are thinking of buying your first home, now may be a very good time to learn about your options. Visit our website for dates for First Time Home Buying Seminars or call me to register for the seminars or for details on how you can begin getting started in this process. The time is good and there is a deadline (July 1, 2009 for this tax incentive)….so call today and let’s get started.

Shasta County Down Payment Assistance Program (City of Anderson)

The County of Shasta has money to help first time home buyers with their down payment and closing cost of owning their first home. The Shasta County Down Payment Assistance Program (DAP) assist first time home buyers with a loan. You must be qualified as low income first time home buyers.

Federal money from this program comes from grants awarded to Shasta County and the City of Anderson by the California Department of Housing and Community Development. It is administered by the Shasta County Housing and Community Action Programs.

Prepare and Apply

• Do you have a stable income to qualify for a loan?
• Do you have at least 3% of the purchase price for a down payment and closing costs?
• Have you addressed any negative credit issues?
• Do you have too many other financial obligations to purchase a home?
• Am I ready to take on the responsibility of owning a home?

What Homes Qualify?

Eligible homes include new homes, existing homes, manufactured homes on permanent foundations, and condominiums.

Who is Eligible?

Potential first time home buyers must meet the definition of a first time home buyer (not having owned a home within the last three years) and be able to obtain first mortgage financing for the purchase. You must also qualify under the following income guidelines.

• Family of 1 $30,150 Maximum Annual Income
• Family of 2 $34,450 Maximum Annual Income
• Family of 3 $38,750 Maximum Annual Income
• Family of 4 $43,050 Maximum Annual Income
• Family of 5 $46,500 Maximum Annual Income
• Family of 6 $49,950 Maximum Annual Income
• Family of 7 $53,400 Maximum Annual Income
• Family of 8 $56,850 Maximum Annual Income

You may also qualify as a first time home buyer if you are a single parent who is a “displaced homemaker”.

Guidelines for the Shasta County Down Payment Assistance Program

• Maximum purchase price is $225,000.
• The DAP loan can be up to 40% of the purchase price with a maximum loan of $80,000.
• The DAP loan (second mortgage) will accrue interest at 0% without payments until loan is due.
• The DAP loan is due when home is sold, title changes hands, refinanced, or loan receipient ceases to live in the home. The home must be owner occupied.
• Borrower will be required to contribute at least 3% of the purchase price (may be a gift).
• Home must pass an inspection for Housing Quality Standards,
• A class in home ownership is required of all participants.
• Not all areas of the County may be eligible. Call for information.
• The combination of both loans (first and second) may not exceed 97% of the appraised value.

Example:

A person purchasing a home for $175,000 with an appraised value of $175,000 will need to obtain a loan from the lender of their choice for a minimum of $99,750. The maximum DAP loan would be 40% of $70,000. *Note: not all client receive the maximum. The person must contribute 3% of the purchase price in this instance $5,250. The maximum combined loan to value (1st loan + DAP) is 97% of the appraised value, which is $169,750. The person retains all appreicated value of the home and enjoys the benefits of deducting home loan interest from their income tax.

Contact the Department of Housing and Community Action Programs, 1450 Court Street, Suite 108, Redding CA 96001. Phone 530 225-5160 and Fax 530 225-5178.

I am Jeanean Gendron, your Redding and Shasta County Specialist. I can be reached at 530 276-7417. I answer my phone. Visit our websites to learn more about Redding and Shasta County Real Estate. I love helping first time home buyers. I’ll be stopping by to check on you and making sure your new home is just dandy!