Navigating the home-buying process can feel overwhelming, especially when you’re doing it for the first time. But don’t worry—I’m here to explain how the Pomona First-Time Homebuyer Mortgage Assistance Program (MAP) could help you take that big step toward homeownership.

Program Details

• Program Name: Pomona First-Time Homebuyer Mortgage Assistance Program (MAP)
• Funding Source: City of Pomona
• Type of Assistance: Deferred loan for down payment and closing cost assistance

Eligibility Criteria

1. First-Time Homebuyer Status: You must not have owned a residential property in the past three years.
2. Income Limits: Your household’s gross annual income must fall within program limits, which are based on household size.
   • 1-person household: $77,700
   • 4-person household: $110,950
3. Property Location: The property must be a single-family residence or condominium located within the City of Pomona.

Program Benefits

1. Deferred Loan Assistance: Receive up to $100,000 in assistance for your down payment and closing costs.
2. Silent Second Mortgage: The loan requires no monthly payments. It’s structured as a “silent second mortgage” that becomes payable under certain conditions:
   • Selling the home
   • Refinancing with cash-out
   • Changing the title
   • Reaching the 45-year term
3. Forgiveness Option: A portion of the equity-sharing obligation is forgiven over time. For each year you live in the home, 1/45th of the calculated equity share is forgiven.

Potential Drawbacks

1. Equity Sharing: The City shares in the equity growth of the property, based on the percentage of assistance provided relative to the purchase price.
2. Repayment Requirements: The deferred loan must be repaid if you sell the home, refinance with cash out, transfer ownership, or after 45 years.

Application Process

1. Pre-Approval: Secure pre-approval for a first mortgage through a participating lender.
2. Program Interest: Inform your lender about your intent to apply for the MAP.
3. Affordability Calculation: Work with your lender to ensure your housing costs meet the program’s affordability guidelines.
4. Homebuyer Education: Attend a Community Homebuyer Training Seminar offered by approved organizations, such as:
   • Inland Valley Fair Housing and Mediation
   • Neighborhood Partnership Housing Services, Inc.
5. Property Selection: Find a qualifying property within Pomona and begin the escrow process.
6. Application Submission: Your lender submits your MAP application to the City of Pomona.

Pros and Cons

• Pros:
  • Significant financial assistance (up to $100,000) to reduce upfront costs.
  • No monthly payments are required for the deferred loan.
  • Equity-sharing forgiveness over time.
• Cons:
  • Equity sharing reduces your financial gains from future property appreciation.
  • Loan repayment is triggered by certain conditions (e.g., selling, refinancing with cash out).