The city of Visalia, California offers a first-time home buyers’ program to purchase homes in the City of Visalia. The purpose of the program is to help first time homebuyers into homes they can afford by granting them money via a silent second. What this means is that the city is not giving you “free money” but rather they are securing a portion of the debt in a 2ndmortgage that you do not make payments on as long as you live in the home. You would pay that amount back + simple interest of 3% if you refinanced or sold the home or turned it into an investment property. I think it is very important that you understand you will pay this money back if you refinance or sell the home or change the occupancy. Often lenders gloss over the details and scream “free money” but that is not what this is… it never is.
This is a great way to get into a home and have a monthly payment that is affordable, especially for California. That is the goal and that is what this program accomplishes.
Below are some bullet points on the program. I highlighted the three main ones you want to make sure you meet.
CalHome Reuse First Time Homebuyers Program
- Requires a homebuyer education class selected by the city
- Property must be in the city limits. No wiggle room on this
- Buyer must be pre-approved for a first mortgage through a “certified” primary lender and document need for assistance.
- Only “fixed rate” FHA or Conventional mortgages are authorized.
- First mortgage must be a fixed rate not to exceed 30 years.
- Must be within income limits (see below chart)
- Down payment of no less than 3% from the buyer
- Maximum second mortgage loan amount of $38,000 from city
For more information you will want to speak with one of their approved lenders about getting qualified and submitting your application to the city. Yes, I am an approved lender on the list. IF you fit within the program parameters, I urge you to use this program. Affordable issue is a huge issue in our country and every nickel we use that is allocated towards remedying the problem is a step in the right direction.