What is the City of Shasta Lake Down Payment Assistance Program?

The City of Shasta Lake has money to help first-time homebuyers with their down payments and closing costs. The Down Payment Assistance Program (DAP) provides a loan to qualified low income first time homebuyers. Federal money for this program comes from grants awarded to the City of Shasta Lake by the California State Department of Housing and Community Development.

Are you Ready to Apply for a DAP Loan?

Ask yourself the following questions to determine if you are ready to apply for a DAP loan:

􀀹 Do I have a stable income to qualify for a loan

􀀹 Do I have at least 3% of purchase price for a down payment and closing costs?

􀀹 Have I addressed any negative credit issues?

􀀹 Do I have too many other financial obligations to buy a house?

􀀹 Am I ready to take on the responsibility of owning a home?

What Homes Qualify?

Eligible homes include newly constructed homes, existing homes, manufactured homes on foundations, and condominiums.

Who is Eligible?

Potential DAP home buyers must meet the definition of first-time homebuyer, and be able to obtain first mortgage financing for the purchase, and must qualify under the following median income guidelines.  Call me to find out about qualifying.

Family Size Maximum Annual Income

1 $ 30.150

2 $ 34,450

3 $ 38,750

4 $ 43,050

5 $ 46,500

6 $ 49,950

7 $ 53,400

8 $ 56,850

State CDBG/HOME Income Limits FY2006

You can qualify as a first-time home buyer if you have not owned a home within the last three years or you are a single parent that qualified as a “displaced homemaker.”

Basic Guidelines of the City of Shasta Lake Down Payment Assistance Program

􀂃 Maximum purchase price is $225,000 for one family (HCD updates annually)

􀂃 The DAP loan you obtain can be no more than outlined below:

$100,000 & Below - 30% Max

$100,001 to $150,000 - 35% Max

$150,001 to $225,000 - 40% Max

NOT TO EXCEED $80,000.00

􀂃 The second mortgage through DAP will accrue 0% interest with no payments until loan is due.

􀂃 Loan is due when home is sold, title changes hands, refinanced, or home recipient ceases to live in home (must be owner occupied).

􀂃 Borrower will be required to contribute at least 3% of the purchase price (may be gift).

􀂃 Home must pass an inspection for Housing Quality Standards.

􀂃 A class in home ownership is required.

􀂃 Must purchase home in City of Shasta Lake city limits.

􀂃 The combination of both loans (first and second) may not exceed 100% of the appraised value.

Contact info;  http://www.ci.shasta-lake.ca.us