City of Concord
First Time Homebuyer Program
(En espanol)
Translation services for the non-English speaking applicants are available by making arrangements ahead of time with our office.
Servicios de traduccion para solicitantes que no hablan Ingles estan disponibles arreglos anticipados con nuestra oficina.
What is the First Time Homebuyer Program?
It is a second mortgage loan program to assist qualified low- and moderate- income individuals with the purchase of their first home. FTHB loan funds are to assist with down payment and/ or closing costs.
What are the maximum income limits and FTHB loan amounts?
Households earning at or below 100% of area median income are eligible for up to a $25,000 loan. Those earning between 100% (100% en espanol) and 120% (120% en espanol) of Area Median Income are eligible for up to a $15,000 loan. (Refer to household size at all income levels)
| Household Size | 100% of Median | 120% of Median |
|---|---|---|
| 1 | $58,700 | $70,400 |
| 2 | $67,000 | $80,500 |
| 3 | $75,400 | $90,500 |
| 4 | $83,800 | $100,600 |
| 5 | $90,500 | $108,600 |
| 6 | $97,200 | $116,700 |
| 7 | $103,900 | $124,700 |
| Maximum Loan Amount | $25,000 | $15,000 |
How much money can I borrow?
The maximum loan amount is 20% of the home sales price, or appraised value, whichever is lower, up to a maximum of $15,000 to $25,000 based on household income and household size.
Who is eligible for a loan?
Borrower must be a first time homebuyer, which is a household that has not owned a home within the past three years. Borrowers must be able to qualify for a first mortgage from a participating lender. The homebuyer must provide a minimum of 3% of the purchase price (or a seller credit at close of escrow, equal to this 3% is okay, too).
What homes are eligible for purchase?
Homebuyers may purchase an existing single-family detached home, condominium, or townhouse located anywhere within Concord City Limits.
What are the loan terms?
- Borrower's Disclosure
- Resale Restrictions
- The loan is a zero-interest, 45-year loan. Loan repayments are deferred for 45 years, and the loan is due when the house is sold or at the end of 45 years.
- The City loan carries shared appreciation when the home is sold. For example, if the City loan is $20,000, and the home's original purchase price is $200,000, the City's "share" is 10% of the appreciation. (Appreciation is the difference between the original purchase price and the price the house is sold for). When the house is sold, in this example, the amount of shared appreciation due to the City at the time of sale is 5%. Repayment is one half of the original shared appreciation percentage on the City loan.
- When you notify the City of your intent to sell or transfer your FTHB home, the City of Concord has the option to designate an eligible purchaser who meets the income requirements of our FTHB program. This enables the City to meet 2002 requirements of Community Redevelopment Law, which requires this FTHB property to remain affordable for a total of 45 years.
- There are resale restrictions recorded on the deed to the FTHB home. The Resale Restriction Agreement limits the sales price of your house when you sell. When you are ready to sell the home, the City will calculate the maximum future resale price, which is not equal to the full market value.
- The future resale price is calculated by the percentage increase in the median income for Contra Costa County (from the date of original purchase to the date the City received the notice to sell). This base resale price can be increased by the value (not cost) of any substantial structural or permanent fixed improvements made or installed by you or under your direction (with prior written approval by the City), and whose initial costs were two thousand dollars ($2,000) or more (as evidenced by dated receipts held by you), made after you bought the house. (It is important to understand that if the home has suffered from any damage or deferred maintenance while you were living in it, the restricted future sales price will be adjusted to take any decrease in value into account.)
Are there any other requirements?
- Borrowers must attend a City-approved FTHB Counseling Workshop.
- The home purchased under the FTHB program must be the borrower's principal place of residence, the property cannot be leased or rented during the term of the City loan.
- Persons with ownership of any real estate assets are not eligible.
- Funds are limited. Assistance is provided on a first-come, first-served basis, as long as funds remain available.
