First-Time Homebuyer Loan Program Introduced in Emeryville

The City of Emeryville has established the First Time Homebuyer Loan Program, a significant initiative aimed at assisting households with moderate or below-moderate income in overcoming the financial barriers to homeownership. This program is particularly beneficial for those caught in the renter’s trap, providing much-needed support to cover the substantial upfront costs of purchasing a home.

Available Assistance: The First Time Homebuyer Loan Program offers down payment assistance through a low-interest rate, deferred payment loan. The interest rate is set at either 75% of the first mortgage’s rate or 5%, whichever is lower. This loan becomes payable upon the sale or transfer of the home, when the home is no longer the borrower’s primary residence, or after 30 years, whichever occurs first. Additionally, borrowers are required to contribute a minimum of 3% of the down payment from their own funds.

Eligibility Requirements: To qualify for this program, applicants must meet specific criteria:

• Applicants must be first-time homebuyers, defined as those who have not owned a home in the last three years.
• Exceptions to this rule include:
  • Single individuals or single parents who previously owned a home within the past three years with a former spouse.
  • Employees of the City of Emeryville or the Emery Unified School District.
  • Individuals who previously owned a home with a domestic partner within the past three years but have since terminated the domestic partnership.

Income Limits: The total household income of all applicants must fall within 120% of the area median income, as published annually by HUD. An exception is made if one of the buyers in the household is an employee of the City of Emeryville.

Property Guidelines: The program has specific guidelines for eligible properties:

• The purchased home must be the applicant’s primary residence.
• Occupancy limits for the purchasing unit are based on Section 503(b) of the Uniform Housing Code, which determines the minimum and maximum household size allowed based on the number of bedrooms in a unit:
  • Studio: 1 to 2 persons
  • 1 bedroom: 1 to 3 persons
  • 2 bedrooms: 2 to 5 persons
  • 3 bedrooms: 3 to 7 persons
  • 4 bedrooms: 4 to 9 persons

In summary, the First Time Homebuyer Loan Program by the City of Emeryville is a crucial resource for individuals and families looking to transition from renting to owning a home. By offering a deferred payment loan to assist with down payments and setting clear eligibility and property guidelines, the program addresses one of the major barriers to homeownership. Its focus on moderate-income families and the requirement for a personal contribution towards the down payment ensure that the program supports responsible and sustainable homeownership in the Emeryville community.