Posted: 05/14/2012 01:02:26 AM PDT
The city of Vacaville has learned it will receive a $1 million grant from the California Department of Housing and Community Development for its First-Time Homebuyer Program.
Approximately 35 households will be able to take advantage of the program funds with a maximum of $25,000 available per loan -- the minimum amount needed to close the gap between lender requirements and the homebuyer's available cash for a down payment and non-recurring loan costs, also known as gap financing.
"Because Redevelopment was eliminated and it provided the funding for all our first-time homebuyer loan programs, we were concerned that we wouldn't be able to provide homeownership opportunities for lower-income households anymore," said Anne Putney, housing manager for the city of Vacaville. "But thanks to this grant, we will be able to assist about 35 households."
Participants in the program do not have to repay the loan until the property is sold or transferred, if the home is no longer occupied by the owner, or when the loan reaches its maturity date. Interest may be forgiven, depending on how long the family stays in the home.
A "First-Time Homebuyer" is defined as someone who has not had an ownership interest in a residence at any time within the last three years.
To qualify, household income must be at or below 80 percent of Area Median Income for Solano County.
"Success with this program may pave the way for us to obtain more of these kinds of grants in the future," Putney added.