Monterey County Offers Financial Boost for Homebuyers with Assistance Program

The County of Monterey in California is keenly aware of the challenges many aspiring homeowners face, particularly those who can manage monthly mortgage payments but struggle to accumulate the necessary funds for a down payment on a new home. In response to this widespread issue, the County has established the First Time Homebuyers (FTHB) Down Payment Assistance Program. This program, bolstered by HOME funds provided by the State, is designed to support individuals by contributing a significant portion of the down payment, thereby facilitating the purchase of homes in the unincorporated areas of Monterey County for income-qualified households.

Extensive Assistance for First-Time Homebuyers

The FTHB Program offers down payment assistance in the form of a loan. The maximum loan amount is carefully calculated, ensuring it does not exceed the lesser of the maximum HOME subsidy limit, 20 percent of the home's purchase price, or the amount deemed necessary based on underwriting criteria. Importantly, the loan amount provided through this program will never surpass the primary loan amount, maintaining financial balance and responsibility.

Eligibility Criteria for Applicants

To qualify for the FTHB Program, applicants must meet several criteria. They must be residents of Monterey County and first-time homebuyers, defined as those who have not owned a home in the last three years. The program is specifically targeted at households whose annual income does not exceed 80 percent of the area median income for Monterey County. Additionally, all borrowers are required to contribute a minimum of 3.5 percent of the home's purchase price from their personal funds towards the down payment, ensuring a personal investment in the property.

Guidelines for Property Selection

Properties purchased under this program must be the borrower's primary residence and adhere to modest living standards. Eligible homes are limited to no more than three bedrooms, two bathrooms, and a two-car garage. Furthermore, the purchase price of these properties must not exceed the program's maximum limit of $396,000 for all unincorporated areas of the County, ensuring the program supports the purchase of reasonably priced homes.

Income Limits for Household Eligibility

The program considers the total income of all household members aged 18 and older, whether or not they are included on the mortgage. The income limits are set as follows:

• 1 person household: $46,800
• 2 person household: $53,450
• 3 person household: $60,150
• 4 person household: $66,800
• 5 person household: $72,150
• 6 person household: $77,500
• 7 person household: $82,850
• 8 person household: $88,200

The First Time Homebuyers Down Payment Assistance Program by Monterey County is a thoughtful and strategic initiative, offering a viable solution to the down payment challenge and opening the doors to homeownership for many first-time buyers in the community.

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