Mortgage Resources: First Time Buyer Programs

First-Time Buyer Programs

Numerous First-Time Buyer programs are available including loan-to-values as high as 107%. First-Time buyers are ordinarily considered those individuals that have not had an ownership interest in Real Estate for the last three years. Please call, email, or complete the on-line application for specific programs available in your area.

INDEX

MCC - Mortgage Credit Certificates - Neighborhood Advantage

VA Loans - Veterans Administration Loan Program - Cal 97 Advantage Program

MCC - Mortgage Credit Certificate Program

First-Time Buyers Only (May not have owned a home in the last three years.)
May be utilized with almost any conventional lending program including fixed or adjustable and FHA or VA financing. (Negative amortization ARMs are not allowed, nor are other bond financed programs such as Cal Vet or CHFA.)
Only for single family residences, Condos or PUDs. (Duplexes are allowed only in target areas.) (Note: Target areas are census tracts 5009 and 5010 on Thomas Brothers Map Page 62 in downtown San Jose. bounded by Washington St., First St., E. William St. and Tenth St.)
Income limits - Non-Target Area: $76,800 for family of one, $96,000 for family of two and $100,400 for family of three or more.
Sales Price Limits - $410,000 for existing homes $410,000 and for new construction
Buyer Advantages: Federal Tax Credit Equal to 15% of the interest paid during calendar year. Equivalent reduction of approximately 1.30% in effective interest rate. Allows buyers to qualify for a purchase price of about 10% more than they otherwise could.
Seller requirements: Must sign affidavit of purchase price in escrow. No specific requirement to pay any of the borrowers' costs unless dictated by underlying loan program (i.e. VA loans, etc.) May not pay any more of buyers' costs than allowed with underlying loan program (i.e. on Conventional loans the seller may pay up to 3% of the Sales Price toward buyers costs at LTVs above 90% and up to 6% on LTVs for 90% and below.)
Side Notes: Borrowers are subject to a potential recapture provision if they sell their home within 9 years of the purchase date. There is no significant increase in the escrow period required to close an MCC transaction.
All figures are for Santa Clara County, California.
Special Note -- The County is allowing multiple refinances under the MCC program. The Reissued program (RMCC) allows current holders to maintain the same tax credit amounts under their original commitment while allowing them to take advantage of today's lower rates.

Neighborhood Advantage

May not presently be on title to a home.
30 year Fixed or 5/1 Fixed/ARM.
Only for single family residences, Condos or PUDs
Income limits: $69,600 for Santa Clara County, $54,080 for Alameda or Contra Costa County, $40,240 for Monterey County, $59,920 for San Francisco County, $59,920 for San Mateo County.
Loan Amount: Up to $350,000.
May be used in junction with the MCC Program!
100% Financing! No payment required.
No reserve requirements.
Special offer for Alameda, Contra Costa and Sacramento County -- $2,000 lender grant for closing costs!

VA Loans - Veterans Administration Loan Program -

Available for Veterans who have been discharged under conditions other than dishonorable and for active duty military personnel.

Property types: Single to Four Family homes, and approved condos or PUDs. Only for owner occupied properties (unless refinance.)
No Income limits
Maximum Loan Amount: $417,000 - No increase in the loan amount for multiple units. Up to 100% LTV.
Loan Types: 30 and 15 year fixed rate loans.
Buyer Advantages: Lowest Down Payment requirement of any type of financing. Greater flexibility in underwriting. May be used in conjunction with the MCC Program.
Seller requirements: Must pay several fees which are normally paid by the buyer including Underwriting, Document Preparation, Processing, Tax Service, all City Transfer Taxes and notary fees. These fees usually total approximately $1,000. Points may now be paid by either party and the interest rate is negotiable. The Seller may pay all the buyers closing costs including pre-paid expenses.
Side Notes: VA streamlined processing has allowed VA transactions to close within the 30 to 45 day normal escrow period. Contact with the VA is no longer required.
Like to know more about VA Loans? Check out our VA Loan Page.

Cal 97 Advantage Program -

May not presently own or be on title to any property.
30 Year Fixed rate conforming program.
Only for single family residences, Condos or PUDs
Income limits: $121,800 for Santa Clara County, $94,640 for Alameda or Contra Costa County, $70,420 for Monterey County, $104,860 for San Francisco County, $107,860 for San Mateo County.
Loan Amount Limits: $300,700
Buyer educational course work is required.
Property inspection mandatory for any home over ten years old.
Buyer must have 3% of Sales Price in their own funds.
Buyer Advantages: Among lowest down payments required. High maximum income limits. No reserve requirements. Bottom ratios may be as high as 40%.
Seller requirements: No specific requirement to pay any of the borrowers' costs. May not pay any more of buyers' costs than up to 3% of the Sales Price, which may include the first year MI premium.