What is the First Time Homebuyer Program?
It is a second mortgage loan program to assist qualified low-and moderate-income individuals with the purchase of their first home. FTHB loan funds are to assist with down payment and/or closing costs.
What are the maximum income limits and FTHB loan amounts?
Households earning at or below 60% of Area Median Income are eligible for up to a $40,000 loan. Those earning between 61% and 80% of Area Median Income are eligible for up to a $30,000 loan, and for those earning between 81% and 100% of Area Median Income are eligible for up to a $20,000 loan.
How much money can I borrow?
The maximum loan amount is 20% of the home sales price, or appraised value, whichever is lower, up to the maximum of $40,000 based on the above described household income and household size.
Who is eligible for a loan?
Borrower must be a first time homebuyer, which is a household that has not owned a home within the past three years. Borrowers must be able to qualify for a first mortgage from a participating lender from the Concord Preferred Lender List. The homebuyer must provide a minimum of 3% of the purchase price.
What homes are eligible for purchase?
Homebuyers may purchase an existing single-family detached home, condominium, or townhouse located anywhere within Concord City Limits.
What are the loan terms?
- The loan is a zero-interest, 15-year loan. Loan payments are deferred, with the loan being due at the end of 15 years or earlier if the house is sold.
- The City loan carries shared appreciation when the home is sold. For example, if the original sales price is $200,000 and the City loan is $20,000, the City’s “share” of the appreciation is 10%. At the time of sale or refinance to pay off the City loan, 10% of the appreciation will need to be paid to the City. When the City loan is paid off the shared appreciation obligation ceases.
Are there any other requirements?
- Borrowers must attend a City-approved FTHB Counseling Workshop. Click here for a list of HUD Counseling Agencies that offer workshops.
- A home purchased under the FTHB program must be, and remain, the borrower’s principal place of residence. The property cannot be leased or rented during the term of the City loan.
- Persons with ownership in most real estate assets are not eligible.
- Funds are limited. Assistance is provided on a first-come, first-served basis, as long as funds remain available.
How do I apply?
To apply, please follow the steps below:
- Fill out and sign the City of Concord Application & Affidavit of Household.
- Assemble all supporting documentation from the FTHB Checklist of Documents listed under “To Start the Process” and “Once You are Pre-approved with a Lender”. Please note: the Lender Pre-qualification must be from a participating lender from the Concord Preferred Lender List.
- Review the First Time Homebuyer Borrower Disclosure and sign page 6.
- Mail all completed paperwork to:
Hello Stewardship – CITY OF CONCORD
1242 Market Street, 3rd Floor
San Francisco, CA 94102
For more information, please call Matt Warner (415) 689-7746.
Program Income Limits
(effective April 2018)
|Income Limits by Percentage of
Area Median Income (AMI)
Interested? here are some additional resources to help you get started