El Dorado County First Time Home Buyer Program

FIRST TIME HOMEBUYER LOAN PROGRAM

The First Time Homebuyer Loan Program provides low interest rate loans to eligible homebuyers to assist in the purchase of a home in the unincorporated areas of the County. With the recent increase in sales prices, first time homebuyers are in jeopardy of never experiencing the American Dream of home ownership. Funding for this program is provided through the Community Development Block Grant (CDBG) Program and the County’s revolving loan fund.

Eligible applicants must meet the following requirements:

• Household income at or below 80% area median based on household size
  (see the State CDBG and HOME’s Table of Income Limits for current figures at www.hcd.ca.gov/hpd/hrc/rep/state/incNote.html)
• Ability to provide a 2% down payment based on the purchase price of a home
• Ability to qualify for a fixed-rate first mortgage through a traditional lender
• Cannot have owned a home or been on title to real property within the current three-year period (some exceptions may apply).

The loan program includes:

• Interest rates as low as 3%
• Payments deferred for 30 years
• Loan amounts up to $100,000
• No equity recapture

This program is designed as a gap financing program for applicants that would not qualify for a bank loan sufficient enough to purchase a home due to limited income. Loans are available on a first-come first-served basis while funding lasts.