The First Time Home Buyer (FTHB) Program offered through our office can be used in the unincorporated area of Shasta County, including the City of Anderson and Shasta Lake City.
If you are looking for assistance inside the city limits of Redding, please visit their website for information by clicking here.
What is the FTHB Program?
The FTHB program is for income qualified individuals that have never owned, or had an ownership interest in, a home for the past three years. FTHB is a deferred loan program that functions as a silent second mortgage with up to 3% simple annual interest. The residence purchased through this program must remain the home buyer's primary residence for the term of the loan.
Who is eligible?
Applicants must meet the definition of a first-time home buyer, obtain first mortgage financing, have 3% available toward the downpayment, and meet gross household income limits up to 120% Area Median Income (AMI) (based on available program funding source).
Are there limits to the loan amount?
The home must be appraised at, or under, the maximum allowable value limit (see FTHB Flyer or speak with a housing program specialist for more information). Maximum loan amount is $80,000. FTHB loan term is 30 years with up to 3% simple annual interest. The combined primary and secondary loans may not exceed 97% of the appraised home value. There are no prepayment penalties.
How does it work?
Example of a FTHB transaction: Applicant purchasing a home with an appraised value of $250,000 will obtain a first mortgage loan from a lender of their choice for a minimum of $162,500 (65%). The maximum DAP loan would be $80,000 (32%) and the applicant provides $7,500 (3%) toward the purchase price of the home. The maximum combined (first mortgage + FTHB) loan to value limit is 97%. In this example $242,500 loan.
How do I get started?
Read through the FTHB flyer, then contact us for a prequalification interview. If prequalified for the program, the next step is to secure a first mortgage loan and budget through a lender. Home buyer then applies for the county’s first-time home buyer program and completes a certified first-time homeowner course. With the financial commitments confirmed, and their 3% contribution secured, the home buyer locates a desired property within the unincorporated areas of Shasta County (outside the City limits of Redding).