The Riverside County First Time Home Buyers Program has run out of funds.

down payment assistanceThe program offers up to 20% (maximum $75,000) down payment assistance to first time buyers and has been well-funded in recent years due to the lack of affordable housing for people with limited incomes. The buyers are not required to make any payments on the down payment assistance, and if they kept the home for 15 years the second mortgage is forgiven.

With the drop in the prices of real estate in Riverside County (Hemet, San Jacinto, Murietta, Temecula, Idyllwild and the surrounding areas), more and more first time buyers were able to use the program to purchase their first home, so the funds ran out.

Lower prices for real estate and low interest rates should be good news for first time home buyers, however mortgage loan programs have gotten more restrictive because of the instability of the housing market. The loss of the Riverside County FTHB program is the last step away from 100% financing until some other programs step into the gap, leaving 3% down programs (like the FHA government mortgages) the best option for those with little savings.

The Riverside County Economic Development Association's fiscal year ends in June. I haven't received word whether or not the funds will be available in July. Stay tuned.

Joey Aszterbaum is the Hemet Home Loan Guy and a member of the Active Rain social network of real estate professionals. Patrion Mortgage is a direct lender and a division of Altura Credit Union (formerly Riverside County's Credit Union). To buy or refinance real estate in Hemet, Riverside County, California visit www.HemetHomeLoans.com or call 951.571.5751

 

12 Comments on Riverside County's First Time Home Buyers Program Out of Funds!

FEB
04
2008
277,400 Points 59 Featured Posts Outside Blog
Joey - Long time no see man.  That's the cache to some of these First Time Home Buyer Programs.  There is a certain amount of money available and then goes away...it's hard to say when there will be enough funds to reinstitute the program.
2:37pm • #1
115,141 Points 9 Featured Posts Outside Blog
Jason: Same to you...thanks for stopping by! I don't know how many years it's been since this one ran out of funds, but it's been a while. The bummer is that I had several first-time buyers pre-approved for the program and didn't get a call from the Riverside County EDA. We found out on accident. That's not the type of news you like to call out to your clients...bummer. Come back soon.
2:42pm • #2
116,563 Points 8 Featured Posts

Such a generous program, I'm surprised it lasted at all. This is great info though :)

MWA! 
3:29pm • #3
447,614 Points 21 Featured Posts Localism Sponsor Outside Blog
Joey, it almost sounds like good news/bad news.  It is good that you have had so many first time home buyers that were able to take advantage of the program but bad news for the first time home buyers that were waiting in the wings.  The face of your industry has really changed in the last year, hasn't it?  It seems like it was about 10 years ago. 
8:35pm • #4
FEB
05
2008
115,141 Points 9 Featured Posts Outside Blog

JenJen: You know, it sounds really generous, but the income restrictions are pretty strict. Two years ago the only people who could qualify for the first mortgage made too much to get the County help! The worst part is that it's such a great time for first time buyers in Hemet, but now that this is gone there are no 'no down' programs. I suppose that's a good thing? Some people argue it is. I don't, only because I've helped a lot of good people buy their first home with nothing down. Heck...that's how I bought my home.

Marchel: True. I wasn't around 10 years ago, but we're getting into what we call 'vanilla funding'. In other words, there aren't the thirty-one flavors of mortgage loan programs there used to be. It's a full doc, come in with 3% or more world.
3:11am • #5
FEB
11
2008
My wife and I are looking to buy our first home, we were excite to find out that there was such a generous program that helped up to 20% of the down plus closing cost.  Then reality hit when we saw your post, darn it seems we are always late to react at a good opportunity.  Is waiting for July a better gamble than to attempt with a FHA loan?  Will there be such a program in July with fresh funds?
Eddie
6:39pm • #6
115,141 Points 9 Featured Posts Outside Blog
Eddie: The program is great. I can tell you if you qualify so that you know whether or not to wait. It does have some tight income restrictions, so waiting until July or August might not be in your best interests. Call me.
7:01pm • #7
FEB
12
2008
Thanks for the response, I have been doing some research and from the looks of it we do qualify on all the requirements.  We are in process of getting pre-approved for an FHA but we would of loved that help they had to offer.  It seems like there are other gov grants out there but they seem a little tougher to get, hope we can find one 
Eddie
12:15pm • #8
115,141 Points 9 Featured Posts Outside Blog

Eddie: Thanks for coming back. If you have any questions about the process, or if you'd like a second opinion on that FHA loan, give me a call. Take care.
3:59pm • #9
FEB
24
2008
152,495 Points 4 Featured Posts Outside Blog

Had potential clients contact me about this today.  Someone told them that they could get the 75k easily (They are both Dr's by the way) and they could not understand why I was telling them a different story. They are convinced that they have non restrictive access to this money and spoke with another local agent (Would not divulge) who has some "super secret" Access to these funds and advertises this right on their site (I havent found it yet)....oh boy, what has this world come to? At least they have my info when they find the truth.

It looks as if Hemet wont even be a part of the County program any time soon. Hemet and San Jacinto have been taken off of the Counties list of participating Cities. Possible good news is that the majority of the Valley is unincorporated Riverside County so....if the money is out there, you may be able to get it if in the County areas! That is...unless the program is restricted to Cities only and, only then, with City participation.....Keep us posted on what you find.

FTB Assistance Program Parameters 2007

 
2:26pm • #10
115,141 Points 9 Featured Posts Outside Blog

Chris: Glad you stopped by. Hemet City Council is sponsoring a lunch on Wednesday for the local mortgage community, and the Riverside County EDA is going to be there. I have a feeling that there is change in the air and that Hemet may consider participating in the first time home buyers program. I will attend this informal gathering and discussion and report on it.
8:19pm • #11
152,495 Points 4 Featured Posts Outside Blog
It would certainly be in their best interests to do so but......I do hope they can see the forest through the tress on this one. I would love to be there but....have to perform my civic duty every Wednesday. Please take good notes and get the details to me.
9:12pm • #12

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Hemet Home Loan Guy, Joey Aszterbaum

Hemet, CA

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Hemet Mortgage and Real Estate Blog: buy or refinance, credit, things to do in Hemet, Realtor sales training and misc stuff from the Hemet Home Loan Guy a member of the Active Rain social network since 11/06.

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