First Time Home.us

How to do it:

Riverside County (CA) has released their Down Payment Assistance programs for low and moderate income families.

Funds are limited for this program and are reserved on a first come, first served basis, so it’s critical you DO IT RIGHT! to increase your chances of getting your share of the available funds.

Here’s the process:

1. If you are a first time home buyer whose income is within the Program limits, the first step is to contact a participating lender for eligibility screening. Income limits are available at the County website: http://www.rchomelink.com or at our website: http://www.homebuyerhelpnetwork.com (Note: The County uses different criteria for income than the lender)
2. After the lender has determined if you are eligible for the program, you will need to attend a Home buyer Education class for the FTHB program. The lender will provide the names and phone numbers of approved homebuyer education providers and you will need to call one of the providers to schedule a class. The list of providers is also available on the County website: http://www.rchomelink.com or www.rivcoeda.org
3. Once you are pre-approved and the lender has collected all of your required documentation and you have a maximum home price, you can begin the process of finding a home. We recommend using a Realtor who is a Certified First Time Homebuyer Specialist and experienced with Down Payment assistance programs.
4. Once you have located a home in a participating location, you will need to make a purchase offer and start escrow. Many First Time Home buyers are not aware of the keen competition for houses, so it make take more than one offer before you and the down payment assistance programs are accepted. There are County required forms that need to be part of your offer (Your lender will have those forms).
5. During escrow your lender will process your loan application for the first mortgage and FTHB second mortgage. You will be required to sign forms authorizing the lender to submit a FTHB Reservation on your behalf and disclosing your current income from all sources. You have a limited time in escrow to turn in and complete all the required paperwork, so it’s critical you are responsive in a timely manner to the requests for documentation. Failure to provide the documentation could result in funds not being available. 
6. Prior to the close of escrow you will sign loan documents and both the first and second mortgages will be funded. When escrow closes, you will become a homeowner and will be responsible for maintaining the property in sound condition. The FTHB second mortgage will not require payments until you sell your property or do a cash out refinance on the first mortgage. After the 15 year affordability period, the FTHB assistance is converted to a grant with no repayment of funds.

If you or someone you know is a First Time Home buyer and may be qualified for the Homeownership Assistance programs, please leave a comment and share.