Hey there! I know the journey to buying your first home can feel overwhelming, but Santa Ana’s “My First Home” Program is here to make things a bit easier for you. Let’s break down what this program offers and how it can help you achieve your dream of homeownership.

Program Name

My First Home Program

Source of Funding

City of Santa Ana’s Inclusionary Housing Fund

Eligibility Criteria

• First-Time Homebuyer: You must not have owned a home in the last three years.
• Residency/Employment: Preference is given to those who live or work in Santa Ana.
• Income Limits: Your household income should not exceed the following limits:

• Down Payment: You need to contribute at least 3% of the purchase price from your own seasoned funds (funds that have been in your account for at least 90 days).
• Homebuyer Education: Completion of an 8-hour HUD-approved homebuyer education course is required.
• Mortgage Pre-Approval: Obtain pre-approval for a fixed-rate first mortgage; co-signers and variable rate loans are not permitted.

Benefits

• Loan Amount: Eligible low-income households can receive up to $120,000, while moderate-income households can receive up to $80,000 in down payment assistance.
• Interest Rate: 0% interest, making the loan more affordable.
• Repayment Terms: The principal balance is due as a lump sum at the end of a 45-year term or upon transfer of the property.
• Incentives:
  • Santa Ana Student Incentive: Graduates who lived in Santa Ana during high school may qualify for loan forgiveness of up to $40,000 over 20 years, with $10,000 forgiven every five years.
  • U.S. Military Veterans or Active Duty Personnel: Eligible for loan forgiveness of up to $40,000 over 20 years, with $10,000 forgiven every five years.

Potential Drawbacks

• Property Restrictions: The home must be located within Santa Ana and be an owner-occupied residence; multi-family properties are not eligible.
• Funding Availability: Assistance is provided on a first-come, first-served basis, so funds may be limited.

Application Process

1. Complete a required HUD-approved 8-hour homebuyer class.
2. Choose a local lender and receive pre-qualification for a first mortgage.
3. Sign a purchase contract and open escrow.
4. Submit a complete My First Home Program Applicant Packet to the City of Santa Ana Housing Division for review and approval, including all required documents and forms.
5. Ensure the property passes an inspection by City staff for lead-based paint hazards and building/health and safety code deficiencies.
6. Upon approval and successful inspection, the City reserves funds and notifies the homebuyer and realtor.
7. Coordinate with the City and your realtor to schedule the closing date, allowing at least ten business days prior to the close of escrow.

Program Type

This program offers down payment assistance in the form of a deferred payment loan with 0% interest.

Additional Information

For more details and to access the application forms, visit the official City of Santa Ana website: My First Home Program.