***CLICK HERE FOR AN IMPORTANT UPDATE.***
The Hemet Home Loan Guy reported recently that the community down payment assistance programs HART and Nehemiah are going away by October 1st.
Looks like another great source of help for buyers in Hemet and the surrounding areas is going away by that same date: The Riverside County EDA First Time Home Buyers Program.
The program offered up to 20% (maximum $75,000) down payment assistance to first time home buyers with low income (80% of the County median income). 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.
The program had just been funded July 15th, but notice came out today from the Economic Development Agency that it was set to run out of funds by the end of September. That means that all the money for qualified first time home buyers had been used up within just over two months!
Home prices in the Inland Empire (Hemet, San Jacinto, Temecula, Murrieta and the surrounding areas of Riverside County) have dropped substantially. The good news is that more working class families have been able to take advantage of great programs like this. The bad news? That the programs have run out of funds in record time. Some programs show no sign of coming back in these difficult economic times.
There is another program from the Riverside County EDA that is for Moderate Income first-time buyers (those who make 120% or less of the median income) called the Redevelopment Homeownership Program.
The RHP also offers 20% down and is very similar to the FTHB. Notable differences? This interest-free and payment-free silent second mortgage is forgiven after 45 years (instead of 15), or if the buyer sells the home at or below the County's affordability limits. Also, this program ONLY works for homes outside of city limits (in unincorporated County areas).
In July, the RHP had over twice the amount available as the FTHB. Where does it stand now?
My office has calls in to the EDA to find out. As soon as I know, I will post it.
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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
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