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| First-Time Homebuyer Assistance Program|
The City of Walnut Creek is offering interest-free equity share loans to qualifying homebuyers as part of its First-Time Homebuyer Assistance Program.
NEW - Participating Lender Training
The City is hosting a training on August 28, 2014 - 9am to 10:30am - for lenders interested in participating in the program. Lenders must attend the training to access program funds. For more information, view the flyer. To register email Cara Bautista-Rao at email@example.com.
First Time Homebuyer Presentation
View the First Time Homebuyer PowerPoint created by Real Estate Broker, Marilyn Cunningham, and presented at the March 15, 2014 First Time Homebuyer Seminar.
New HOA Helper Grant Program!
In partnership with the Contra Costa Association of Realtors, the City is offering eligible new first-time homebuyers up to $2,500 to cover the first 6 months of their Homeowners Association dues. For more information, view the HOA Helper Grant Program Guidelines.
Minimum Eligibility Criteria
To be eligible to participate in the City of Walnut Creek’s First-Time Homebuyer Assistance Program, the following criteria must be met:
- The borrower(s) must have lived or have been working within the incorporated limits of the City for at least 90 days prior to applying for the program.
- The borrower(s) cannot have owned a home, nor have (jointly) owned a home within the last three years.
- The borrower(s) must be able to pay 1/2 of the closing costs, and put at least 3% down.
- The borrower(s) must: a. Make the home their principal place of residence; b. Covenant not to rent or lease the home during the period of the City loan; and c. Occupy the home within 60 days of close of escrow.
- Housing costs cannot exceed 35% of 110% of Area Median Income based on household size except as may be adjusted to reflect Mortgage Credit Certificates. Housing costs are defined as principle, interest, taxes, insurance and Homeowner Association (HOA) fees.
- For 2012, household income cannot exceed 120% of Area Median Income:
- $78,5501 person
- $89,750/2 persons
- $112,200/4 persons
- $121,200/5 persons
- $130,150/6 persons
- $148,100/8 persons
- The home to be purchased must be within the incorporated limits of the City of Walnut Creek.
- The borrower(s) must be able to qualify for a fixed rate, FNMA conforming, appropriately sized, first mortgage through one of the City’s participating lenders.
City Funding Criteria
- The City will commit up to 17% of the home sales price or the appraised value, whichever is less, but no more than $65,000 maximum per household.
- City funds are to be provided in the form of a deferred second mortgage secured by a Second Trust Deed bearing a return in the form of equity earnings from the appreciation of the property equal to the percentage of the purchase price that the City's Second Mortgage represents at the time of recording. The City's loan may be recorded in third position if borrower is also using CalHFA mortgage assistance.
- City funds can be used for any of the following: 1/2 of closing costs, up to 2% of a required 5% down payment and/or additional down payment.
- To the extent that a borrower has funds available for a down payment in excess of 3%, those funds shall be used first for paying closing costs that would otherwise be paid for by the City.
- Repayment of the Second Mortgage and any equity earnings owed shall be deferred until the earlier of (i) sale or transfer of the Home, (ii) refinance or payoff of the First Mortgage; (iii) recordation of a Third Mortgage, (iv) default of the First Mortgage, or (v) 45 years.
If you meet the criteria above, you should contact one of our participating lenders to begin the loan qualification process. You will need to work with the loan company and your own real estate agent during the purchase process.
Homebuyer counseling is offered throughout Contra Costa County and the Bay Area. A list of agencies with HUD certified homebuyer counselors can be found here.
Download the First-Time Homebuyer Assistance Program Brochure. For information on the American Dream Downpayment Assistance Initiative, visit the County's website. Don’t Borrow Trouble. Information on Predatory Lending: http://www.dontborrowtrouble.com/
For More Information Contact: (925) 943-5899 ext. 2208 or ext. 2236
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