The CalHome First-Time Homebuyer Mortgage Assistance Program is designed to assist low-income homebuyers by providing down payment and mortgage assistance to reduce the amount of the first mortgage loan on homes located in eligible areas of the City and County of Sacramento.  For additional information click here (link to PDF doc summary).  Note that Funding is currently depleted for both the City and County of Sacramento as of March 8, 2017.

CalHome First-Time Homebuyer Mortgage Assistance Program

Program Features

• deferred payment loan secured by a deed of trust
• assistance is calculated at 20 percent of the purchase price to a maximum of $40,000
• Minimum loan amount is $10,000
• 3% simple interest – principal and interest are deferred for the term of the loan
• 30 year loan term (equal to the term of the first mortgage)
• loan is due upon sale or transfer of property, when the property ceases to be owner-occupied, or upon the loan maturity date – the loan is not assumable; refinancing may be allowed subject to Agency subordination policy
• funds may be used for down payment and mortgage assistance
• first mortgage must be a 30 year fixed rate loan and shall not include provisions for negative amortization, principal increases, balloon payments, or deferred interest.
• first mortgage may be FHA, conventional, or CalHFA financing.
• first mortgage must have an impound account for the payment of taxes, assessments and hazard insurance for the entire 30-year term

Eligible Applicants:

Homebuyers who:

• meet CalHome underwriting guidelines for credit
• will have a monthly housing debt ratio of not less than 28% and not more than 38%
• are first-time homebuyers (have not owned a home within the preceding three years, or meet the definition of a displaced homemaker or a single parent)
• are able to qualify for a loan to purchase the home
• attend homebuyer education classes
• will live in the home being purchased
• are defined as low-income – households with income less than or equal to eighty percent (80%) of the area median income adjusted for household size. Income also includes income from assets over $5,000 calculated at 2% of the value of the asset.  Current income limits are:

1-person                    $42,650

2-person                    $48,750

3-person                    $54,850

4-person                    $60,900

5-person                    $65,800

6-person                    $70,650

Eligible Properties

Single family homes in eligible areas (qualified census tracts) of the City and Unincorporated County of Sacramento whose sales price does not exceed the current median sales price of a single family home in Sacramento County.  The maximum purchase price is currently $344,000.  The program is not available in Citrus Heights, Elk Grove, Galt, Folsom, Rancho Cordova or Isleton.

Qualified Census Tract Map   This is a link in the current website – need to retain the link

CalHome Application Procedure

To apply for the program, please contact any of our approved lenders.  For additional information please call SHRA Homeownership Services at (916) 440-1393.

SHRA provides financial assistance to the City of Citrus Heights for a First-Time Homebuyer Program for their residents. The City’s down payment assistance program offers low-interest loans of up to $40,000 for first-time, income-eligible homebuyers. The program is administered by NeighborWorks on behalf of the City of Citrus Heights. For more information contact them at (916) 452-5356 x1230 or by visiting them online here.