Nowadays a very advantageous mortgage financing program is accessible for the citizens who are first-time home buyers in the City of Santa Clara.
The Housing Authority of Santa Clara proposes 1st time housing buyers’ a specially designed financing program that can offer them financial support in buying their first home. Actually, today housing in Bay Area is really among the most expensive in the US and the vagueness of potential interest rates, that’s why this program may be the way out for thousands of people.
How does Mortgage Financing Program for 1st Time Home Purchasers’ Work?
This program offers 1st time home purchaser help in buying a condominium, single-family house or townhome situated in Santa Clara. You will be able to get a first mortgage if you are suitable and qualified purchaser through Neighborhood Housing Services Silicon Valley, Metlife Home Loans or JPMorgan Chase Home Lending using California Housing Finance Agency as a main lender.
With the help of the City you’ll get a second mortgage that helps you to cover the difference between the highest loan sum obtainable through California Housing Finance Agency and the real buy home price. However the second mortgage will be offered only on condition accessibility of funds.
You should attend Home Buyer Training performed by Neighborhood Housing Services to be educated in different aspects of home purchasing if you would like to take part in the Program.
Who Can Take Part in Mortgage Financing Program for 1st Time Home Purchasers’?
• You are eligible if you haven’t owned a home for the last 3 years.
• You are eligible if your annual household income isn’t bigger than 120% of the Santa Clara County’s medium income.
• It’ll be better if you live or work in the City of Santa Clara.
Are there any Program’s Limitations?
Yes. And the highest City second mortgage is $75,000. And at the same time the first mortgage is based on a person’s annual income and California Housing Finance Agency standard underwriting criterion.
What is a Minimum Payment I Need To Pay?
Nowadays you will have to pay 3% of the home’s buy price. For instance, you will have to make a lowest down payment of as a minimum $18,000 to buy a $600,000 home.
What are the Periods of the Second Mortgage?
As for the second mortgage, it will be a 20-year loan planned in the next way: you will have to pay zero percent interest with no payments for the primary 5 years. Then the City loan changes to the interest rate of the first loan and monthly repaid payments of principal and interest rate are paid.