SAN JACINTO Announces 6% Grant for FIRST TIME HOMEBUYERS

SAN JACINTO Announces 6% Grant for FIRST TIME HOMEBUYERS

This is EXCITING NEWS:  San Jacinto, CA.  The Redevelopment Agency of the City of San Jacinto just released the final details of the Down Payment Assistance Program which offers a 6% Grant for first time homebuyers.

That's right - 6% which can be used for a combination of down payment assistance and closing costs.  The best news is it works in conjunction with the benefits available through the recently enacted bill known as "The Worker, Homeownership, and Business Assistance Act of 2009" and is commonly referred to as the $8,000 First Time Buyer Tax Credit.

HOOPS TO JUMP THROUGH

Like any government sponsored program, they can't just give it to everyone - there have to be certain qualifications that have to be met - but let's just say these hoops we have to jump through are big and close to the ground making it very easy for many to pass through without much of a struggle at all.

Perhaps the most difficult will be providing three (yes 3) years of federal tax returns or an Income Tax Affidavit for each year.  These forms must be signed with the statement, "This is a true and exact copy of the return submitted to the IRS."

INCOME

The San Jacinto Down Payment Assistance program is designed for those who do not exceed the Median Income for the Inland Empire Region, consisting of both San Bernardino and Riverside Counties by 120%.  Here is the breakdown, by family size:

• 1 Person Household       $45,100
• 2 Person Household       $51,600
• 3 Person Household       $58,050
• 4 Person Household       $64,500
• 5 Person Household       $69,650
• 6 Person Household       $74,800
• 7 Person Household       $80,000
• 8 Person Household       $85,150

HOUSING RATIOS

Unlike the Riverside County Down Payment Assistance Program that has very narrow ‘housing ratios' the City of San Jacinto CA program does not have these ratios and therefore will be much easier for most to access.

‘Housing Ratios' are very confusing, but I'll do my best to offer the simple explanation as I understand the program to work.  Riverside County had both an upper and a lower income limit where the City of San Jacinto First Time Homebuyer Down Payment Assistance program only has the upper limits.


EDUCATION

The buyer is required to attend a Home Buyer Education Class prior to the close of escrow.  For the time being, most of these classed are held in Riverside although I am in the process of investigating to see if I would be able to host the classes here in San Jacinto.  My guess, unless they consider it to be a conflict of interest, that I am more than qualified to teach their course.

At this point I have no additional information on the course - I do not know how many hours they are scheduled for or if there is a moderate fee for the course.  I am looking into this and will add the information as soon as I find out more.


THE HOME

The decision as to what home the buyer decides to buy is strictly up to the buyer.  The City of San Jacinto is not limiting the program to certain areas of town.  It is up for the buyer to do all of their own due diligence and inspections just as they would buy any other home.  By the City of San Jacinto making grant money available they are not providing any sort of warranty on the homes purchased.

So, to get the best home possible it is always recommended that you work with a LOCAL REALTOR®, like myself.  Not only is my office in the City of San Jacinto, I live here as well.  (Shameless plug)

THE LOAN

The City of San Jacinto Down Payment Assistance Program is used for the purchase of a home in San Jacinto, CA.  The financing obtained must be through an approved lender.  As of right now there is a loan guy in Riverside and our local Hilary Wilkinson with Patrion Mortgage that are approved to provide loans for this program.

Now is a good time for my endorsement of Hilary.  Let me start by saying she is a student of our industry and always seeking to learn and be the very best at what she does...which is why she has become the lender of choice for The Excellence in Real Estate Team at Allison James Estates and Homes.  Hilary gets most of her FHA loans closed in 30 days or less.  What really makes her special in the world of loan officers is her knowledge and expertise in every local program available to buyers in the Hemet - San Jacinto Valley.

Although the City of San Jacinto had their down payment assistance program on the books for some time, it wasn't until Hilary caught wind of the program and helped the City of San Jacinto define what they were trying to accomplish...because before her involvement they really were all over the board.  As a result, Hilary is working with a buyer helping them buy one of my listings.  This transaction will be the very first deal the Redevelopment Agency of the City of San Jacinto has processed.  We are all proud of making this a reality....for ourselves yes, but for our buyer and our City that we want to help improve every way we can!

LOAN TYPE

I guess it makes sense if a buyer is coming in with CASH to buy their first home, they don't need the City money.  The same would be true with Conventional Financing that requires a sizable down payment - usually 20 to 25% of the purchase price for a new home.

The City of San Jacinto Down Payment Assistance Program requires that the buyer obtain a FHA type loan.  An FHA Loan is by far the most common financing for first time homebuyers in the current market. 

By definition, a "first-time homebuyer" is anyone who has not claimed a residential mortgage deduction from their taxes in the last three years.

What is not clear is if a buyer can use VA or CalVet financing and still take advantage - please check with your approved lender.

OCCUPANCY

While it may seem obvious, let me just go ahead and cover this provision that is referenced in the program documentation.

The home purchased must be the buyers ‘principal' place of residence within 60 days of the close of escrow.  The home cannot be used as a business or a vacation (second) home.  All applicants for the loan must use the home as their primary residence...in other words, no co-signor.

I SAVED THE BEST FOR LAST

This program does not even have to be disclosed to the seller.  That's right.  Every other program that I have ever seen has required that the seller sign off on some document or another acknowledging participation in the program.

I have to tell you, there are times when it it tough to get these signed documents back from the seller in a timely manner and the delay has been known to extend escrows which in turn generate expensive per diem charges for the buyer.  There have even been times when the seller refused to sign off on the program, even with a verbal approval.

The other good news is that the City of San Jacinto Redevelopment Department promises to work quickly and have funds ready to wire into escrow within 10 days of receipt of a complete package (which is the only kind Hilary ever submits).  Bear in mind that the city, like many government agencies in California only work 4 days a week, these days - so 10 working days is closer to 3 weeks than it is 2.

So there you have it.  The Excellence in Real Estate Team at Allison James Estates and Homes is working with the only approved local lender to help clients obtain a 6% grant for the purchase of a home in San Jacinto, CA...please don't delay as there is only so much money to go around and we want to make sure you get your share!