First Time Homebuyers Mortgage Assistance Program (MAP)
Purpose:
The First Time Homebuyers Mortgage Assistance Program (MAP) is a City of Oakland program operating jointly with participating lenders to create homeownership opportunities for lower-income, and first time homebuyers to purchase homes in Oakland. The City of Oakland will lend qualifying homebuyers up to $75,000 to purchase a home. As no payments are required on the City's Loan, the program extends the borrower's abiltiy to buy without increasing the monthly principal and interest payment.
This can easily enable a homebuyer to have more buying power, and also significantly reduce a monthly payment that would otherwise be larger without the extra money to initially put down.
REQUIREMENTS:
- Borrowers must be 'First Time Homebuyers'
(Can not have owned your principal residence in the last 3 years).
*Their are only a few exceptions to this*
- Location of Property must be located in the City of Oakland..
Eligible Properties consist of any single family home, including condos, townhomes
Purchase price cannot exceed $503,500.
- Your Income (annual household income) cannot exceed 80% of the Area Median Income. Income of all household members 18 years or older are considered (includes roommates).
Example:
80% of Median / Household of 1 person = $46,350
Household of 2 people = $53,000
Household of 3 people = $59,600
Household of 4 people = $66, 250
Household of 5 people = $71,550
Other Requirements:
Buyers MUST contribute 3% of the purchase price from their own funds to pay for down payment or closing costs.
Example: Home is $250,000 You must only pay $7,500 out of pocket to purchase your home.
Also, the down payment money cannot be a 'gift'. It has to be money that you have saved up on your own.
The city wants you to actually be making an 'investment' into the deal! :-)
LOAN DETAILS:
Interest Rate:
3.0% simple interest (Interest rate does not change. Ever.)
Payments / Term
No Monthly Payments!
Due in 30 Years
OR
When the borrower sells, transfers, refinances the property (under certain conditions) or converts the home to rental property.
HOW TO APPLY:
There are only a hand full of approved lenders who have access to this program!
For more information on how to apply for this program:
Email me at byron@greenteambayarea.com
or Call 510-932-9823
Byron Green, The REALTOR
http://www.greenteambayarea.com/
blog.greenteambayarea.com
Note: There are indeed programs for other bay area cities, but Oakland definitely has one of the best 1st Time Homebuyer programs out there.
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