City of Chico First-Time Homebuyer Program

Last Updated: January 2, 2025By Tags: ,

Hey there! Navigating the world of homeownership can be a bit overwhelming, but don’t worry—I’m here to help you understand the resources available in Chico, California. Let’s dive into some programs that can assist first-time homebuyers like you.

City of Chico Mortgage Subsidy Program (MSP)

The City of Chico offers a Mortgage Subsidy Program designed to provide down payment assistance to first-time homebuyers. The subsidy amount ranges from 10% to 30% of the purchase price, making homeownership more attainable for eligible individuals. Source

Eligibility Criteria:

  • First-Time Homebuyer Status: You must not have owned a home in the last three years.
  • Income Limits: Eligibility is based on total household income and family size.
  • Credit Requirements: A minimum credit score may be required; it’s best to check with the program administrators for specific details.
  • Property Location: The home must be located within the Chico city limits.

Benefits:

  • Down Payment Assistance: Receiving 10% to 30% of the purchase price can significantly reduce the financial burden of buying a home.
  • Deferred Payment Loan: The assistance is provided as a deferred payment loan, which means no monthly payments are required.

Potential Drawbacks:

  • Repayment Conditions: Repayment of the loan is required if the house is sold, title is transferred, or if the house is no longer your principal residence.
  • Funding Availability: Program funds may be limited, so it’s essential to apply early.

Application Process:

  1. Pre-Qualification: Schedule an appointment with a residential lender for a pre-qualifying interview to assess your financial situation.
  2. Application Submission: After pre-approval from the lender, submit your application along with all required information to the City of Chico’s Business Assistance and Housing Development Department.
  3. Homebuyer Workshop: Attend a mandatory homebuyer workshop to gain essential information about purchasing a home.
  4. Property Selection: Once approved, you can start looking for a home within the Chico city limits.

Additional Resources:

  • Community Housing Improvement Program (CHIP): CHIP offers a Mutual Self-Help Homeownership program where participants work together to build their homes, reducing costs and fostering community. No construction experience is needed, and no down payment is required. Source
  • Golden State Finance Authority (GSFA) Programs: While not specific to Chico, GSFA offers various homebuyer assistance programs, including down payment assistance and mortgage credit certificates. Source

Final Thoughts:

Embarking on the journey to homeownership is exciting, and with these programs, you’re well on your way to finding the perfect home in Chico. If you have any more questions or need further assistance, feel free to ask!

Sources:

 

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