The City of Simi Valley offers a First-Time Home Buyer Assistance Program to qualified low income first-time homebuyers who wish to purchase their first home in Simi Valley. I like this program because the Simi Valley city administrators for this program are not only the easiest ones to reach but they are also some of the friendliest ones to talk to and deal with.
The property may be a detached or an attached single-family home, a condominium, or a town house. The program is available to those who have not owned a home in the last three years. Single parents who owned a home while married and displaced homemakers may qualify even if they owned a home in the previous three years. Following is a brief summary of the program:
- Offers low income households a deferred payment second trust deed loan (no monthly payments required) up to $50,000 per bedroom, not to exceed $200,000.
- Resale Restrictions will be recorded against each property upon the initial purchase and shall restrict the resale of the unit at a price-affordable to low income first time homebuyers for 55 years. The 2nd trust deed loan will be assumed by an eligible low income first time homebuyer throughout the 55-year term of affordability.
- Applicants with an average FICO score of 700 or higher will be required to provide a minimum of 3% down payment. Applicants with an average score between 600 and 700 will be required to provide a 5% down payment. Buyers with additional cash assets in excess of $10,000 will be required to use such assets towards down payment and closing costs. Like the Port Hueneme program, depending on how much you have in your checking, savings and/or any retirement account, you may be required to contribute more than the minimum down payment.
- Applicants with an average FICO score below 600 or who have had a bankruptcy within the past four years are not eligible to participate in the program.
- Gift letters are acceptable in meeting up to one half of the minimum down payment requirement as long as there are no repayment terms. A minimum of one half of the required down payment must come from the applicant's personal assets.
- The household's projected annual gross income cannot exceed the following limits:
|
Number of Persons in Household
|
Low Income Limits
|
|
1
|
$49,000
|
|
2
|
$56,000
|
|
3
|
$63,000
|
|
4
|
$70,000
|
|
5
|
$75,600
|
|
6
|
$81,200
|
The above limits apply to the income of all members of the household 18 years of age or older. The income limits are based on figures published by the U.S. Department of Housing and Urban Development (HUD).
- Program eligibility will be based on total household income, a housing cost ratio not to exceed 35%, and a debt-to-income ratio not to exceed 45%. Housing costs include principal and interest, property taxes and insurance, private mortgage insurance, homeowner association dues, if any, and a utility allowance.
- The primary loan must be a fully amortized loan provided by a bank, savings and loans, mortgage banker or other institutional lender. The City will not allow balloon payments or stated income loans for the first trust deed.
- Buyers must occupy the unit as their primary residence.
- A portion of the proposed $50,000 per bedroom subsidy may be used for necessary repairs to bring the property into compliance with the City's Housing Quality Standards (HQS). The maximum home price and City subsidy limits appear below:
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# Bedrooms
|
Maximum Market Purchase Price
|
Per Bedroom Subsidy Limits
|
Maximum Affordable Sales Price
|
|
1
|
$206,700
|
$50,000
|
$156,700
|
|
2
|
$280,900
|
$100,000
|
$180,900
|
|
3
|
$349,300
|
$150,000
|
$199,300
|
|
4
|
$418,600
|
$200,000
|
$218,600
|
So, based on the table above, you can buy a four bedroom home up to $418k and you only have to be able to qualify for a loan of $218k. This is such a HUGE advantage for many of Ventura County's low income residents looking to purchase their first home. Around here, the difference between a $414k home and a $214k home is the difference between a small, dumpy and dilapidated condo and a larger, half way decent single family home.
The City also partners with other available First-Time Homebuyer Programs such as the Ventura County Regional Mortgage Credit Certificate Program (MCC) administered by the Area Housing Authority (AHA) and the California Housing and Finance Authority (CalHFA). These programs offer down payment assistance and in some cases assistance with closing costs. The MCC Program offers a 15% tax credit of the annual interest you pay on the home mortgage, reducing your federal income taxes and increasing your earnings. Unfortunately though, at the time of this post, the CalHFA programs have been temporarily suspended until California legislators approve a new state budget. We have currently been without a state budget for more than 90 days now.
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Donne Knudsen
Realtor® - CalState Realty Services
DRE#: 01364050 / NMLS#: 249822
805.2069123
E-mail My Blog
Serving low-medium income individuals and families as well as first time buyers with both their real estate as well as their mortgage needs including down payment assistance
Los Angeles County -- Ventura County
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I am a fisrst time buyer . My credit score is over 700 and i have had the same job for 20 years. I need help with the downpayment and closing costs...besides simi valley and port hueneme...are there any other programs available-I am looking in Los Angeles County as well...thanks so much