HOME FIRST-TIME HOMEBUYER PROGRAM
The purpose of this program is to provide assistance in the form of a deferred payment loan as ‘gap’ financing to eligible households in purchasing their first home. These loans are available for down payment and closing cost assistance to low and very low income households.
Qualified homebuyers may receive a maximum loan amount of $75,000 towards the purchase of a home located within the city limits of Vacaville. The minimum loan amount is $10,000.
Term and Interest Rate
The loan term will be a minimum 30-year deferred payment loan. The interest rate shall be 3% per annum for the first ten (10) years. At the end of the ten-year period, ten percent (10%) of the interest is forgiven each year until all interest is fully forgiven at year 20, and only the principal remains due and payable at year 30, as long as there is no event of default.
Subordinate to the first deed of trust and is recorded as a second deed of trust. City must approve all senior financing.
Use of Funds
Down payment and non-recurring closing costs. Non-recurring closing costs includes credit report, escrow, closing and recording fees, title report, title insurance, and title updates.
The monitoring period is 30 years; under special circumstances, an additional 15 – 30 years may apply. The City will monitor the loan agreement to ensure adherence to program requirements which includes, but is not limited to, the following:
• Property Tax Payment
• Hazard Insurance Coverage
• Good Standing on Primary Loan
• General Upkeep of Housing Unit
Front-end ratio: 28% to 35%
Back-end ratio: 36% to 45%
Loan to Value
Combined with all other indebtedness shall not exceed 100 percent of the sales price plus a maximum of up to 5 percent of the sales price to cover actual closing costs.
What is the definition of First-Time Homebuyer?
A First-Time Homebuyer has not had an ownership interest in a residence at any time within the last three years.
Buyer's Down Payment
Homebuyer must contribute a minimum investment of 1% of the purchase price towards the down payment.
Certificate required from a HUD-approved housing counseling agency. For information on where to sign up for a Homebuyer Education workshop, click here.
Owner-occupant, primary residence
A good pattern of credit behavior. Negative reports must be explained.
Current state published "low income limits" for Solano County. The income guidelines are published annually by the State of California Department of Community Development.
2018 Maximum Income Limit
New or previously owned single-family detached homes, townhomes, or condominiums located within Vacaville city limits.
The home must be “modest”; it may not exceed three bedrooms and two bathrooms unless there are documented extenuating circumstances.
Purchase Price Limit
The value cannot exceed 95 percent of the HOME program area median purchase price maximum as follows:
• Existing: $356,000
• New: $416,000
• City HQS inspection is required. Must comply with local codes and health and safety requirements.
• Lead based paint visual assessment required for pre-1978 homes.
• Pest inspection with “Section 1” clearance required.
• Any deficiencies must be cleared prior to closing.
• If located within a 100-year flood zone; proof of flood insurance is required.
• Homeowner’s warranty policy is encouraged, but not required.
Owner-occupied. Owner-occupancy to be certified annually.
The loan shall be fully amortized and have a term “all due and payable” in no fewer than 30 years.
Loan Term and Interest Rate
Fully amortized, fixed interest rate that does not exceed the current market rate. A permanent loan buy-down is permitted as long as it does not cost more than 1% of the loan amount.
Mortgage shall not include provisions for negative amortization, principal increases, balloon payments or deferred interest. Adjustable Rate Loans (ARM’s) and Graduated Payment Loans (GPM’s) are not allowed.
Required for hazard insurance and property taxes.
1. Homebuyer applies with one of the participating lenders.
2. Lender pre-qualifies buyer for primary mortgage and determines amount needed from the First Time
3. Lender sends the completed application packet to the City of Vacaville for review and loan approval.
4. Upon approval, loan documents and funds will be sent directly to the title company.
Additional requirements may apply. For a pdf/printable version of this information, click here.
To apply for the program, any of the lenders on the City approved lender list may be contacted. For additional information or questions call (707) 449-5675 or visit our website at www.cityofvacaville.com.
The City of Vacaville provides its programs and services in a non-discriminatory manner and is an Equal Opportunity/Affirmative Action Employer.
|Action Funding Group||707-399-8880||1545 North Texas Street #302 Fairfield CA 94533|
|Caliber Home Loans (Adobe)||707-469-1234||785 Alamo Drive Suite 140 Vacaville CA 95688|
|Big Valley Mortgage||707-455-7070||479 Mason Street Suite 109 Vacaville CA 95688|
|Cherry Creek Mortgage||916-320-6665||5751 Sunrise Blvd Citrus Heights CA 95610|
|DHI Mortgage||925-225-7472||6632 Owens Drive Pleasanton CA 94588|
|Downtown Lending Group||707-249-1044||707 Merchant Street Vacaville CA 95688|
|People's Home Equity||707-759-5129||
1300 Oliver Road, Fairfield, 94534
|First Community Mortagage||707-678-3500||165 East A Street Suite A Dixon CA 95620|
|Caliber Home Loans||707-432-1000||3700 Hilborn Road Suite 700 Fairfield CA 94534|
|Guild Mortgage Company||702-373-4036||7472 West Sahara Ave Suite 102B Las Vegas NV 89117|
|Kappel Mortgage Group||707-480-6122||401-D Davis Street Vacaville CA 95688|
|New American Funding||707-301-9073||324 Cernon Street Vacaville CA 95688|
|707-427-5400||301 County Airport Road Vacaville CA 95688|
|Sierra Pacific Mortgage||707-718-6060||535-B Main Street Vacaville CA 95688|
|Solano Mortgage||707-449-4777||866 Alamo Drive Vacaville CA 95688|
|Loan Simple||707-451-1400||301 County Airport Road Suite 208 Vacaville CA 95688|
|Caliber Home Loans||707-447-9962||850 Merchant Street Suite A Vacaville CA 95688|
|Travis Credit Union||707-469-1844||
One Travis Way Vacaville CA 95687
|Wells Fargo Mortgage||707-451-5000||
770 Mason Suite 120 Vacaville CA 95688
|Wells Fargo Mortgage||707-432-3460||1293 Oliver Road, Fairfield CA 94534|
|Land Home Financial Services||707-392-4310||535-A Main Street Vacaville CA 95688|
|Vitek Mortgage Group||530-753-7640||342 Merchant Street, Vacaville, CA 95688|
|Envoy Mortgage||707-449-4222||411 Davis Street Suite 201 Vacaville CA 95688|
|Mortgage Advisors Funding Grp||707-451-1262||630 Davis Street Vacaville CA 95688|
|American Pacific Mortgage||707-746-4920||615 First Street Benicia CA 94510|
|Freedom Mortgage||707-679-1492||1021 First Street, Suite 4, Benicia, CA 94510|
|Freedom Mortgage||707-635-6629||91 Cernon Street, Suite B, Vacaville, CA 95688|
Mountain West Financial
|707-372-8271||542 Main Street, Vacaville, CA 95688|
|Umpqua Bank||707-508-3687||3550 Round Barn Blvd., Suite 207, Santa Rosa, CA 95403|
|Pinnacle Capital Mortgage||510-669-2202||3220 Blume Dr, Suite 248, Richmond, CA 94806|