City of Davis Affordable Home Ownership Program
Hey there! I know that buying your first home can feel like a daunting journey, especially in a vibrant community like Davis. But don’t worry—I’m here to walk you through a fantastic opportunity that could make this process a bit smoother: the City of Davis Affordable Home Ownership Program.
Program Overview
The City of Davis offers an Affordable Home Ownership Program designed to help income- and asset-qualified households purchase homes at below-market prices. This initiative doesn’t provide direct financial assistance like loans or grants; instead, it offers homes with price restrictions to keep them affordable.
Funding Source
This program is funded and managed by the City of Davis, aiming to maintain long-term affordable housing within the community.
Eligibility Criteria
To qualify, you’ll need to meet certain income and asset limits:
Income Limits
Your household’s gross annual income must not exceed 120% of the Area Median Income (AMI) for Yolo County. For 2024, the limits are:
Household Size | Maximum Income |
---|---|
1 person | $98,300 |
2 people | $112,300 |
3 people | $126,350 |
4 people | $140,400 |
5 people | $151,650 |
6 people | $162,850 |
7 people | $174,100 |
Asset Limits
Households with assets exceeding $250,000 are not eligible. Assets include savings, stocks, bonds, equity in property, and certain retirement accounts.
Benefits
- Below-Market Purchase Prices: Homes are sold at prices lower than market value, making homeownership more attainable.
- Controlled Appreciation: To keep these homes affordable for future buyers, the resale price is limited to a 3.75% annual appreciation (5.5% for Southfield Park homes).
Potential Drawbacks
- Owner Occupancy Requirement: You must occupy the home as your primary residence; renting it out is not permitted.
- Resale Restrictions: When selling, the price is capped to ensure affordability, which might limit potential profit compared to unrestricted market sales.
Application Process
- Join the Waitlist: Contact the City of Davis at affordablehousing@cityofdavis.org to be added to the Affordable Home Ownership Waitlist.
- Pre-Approval: Obtain a loan pre-approval from a lender to understand your purchasing capacity.
- Income and Asset Verification: When a home becomes available, the city will verify your income and assets to ensure eligibility.
- Purchase: If eligible, you can proceed with purchasing the home.
Additional Resources
- Guidelines for Buyers: Detailed information is available to help you understand the program’s requirements and benefits.
- Homebuyer Education: It’s recommended to attend a homebuyer education class to prepare for the responsibilities of homeownership.
Where is the Program Available?
This program is available exclusively within the City of Davis, located in Yolo County, California.
Pros and Cons
Pros:
- Affordable Purchase Prices: Homes are sold below market value, reducing the financial barrier to entry.
- Long-Term Affordability: Resale price restrictions help maintain the home’s affordability for future buyers.
- Community Stability: Owner occupancy requirements promote stable, engaged neighborhoods.
Cons:
- Resale Price Cap: Limits on appreciation may reduce potential profit when selling the home.
- Occupancy Restrictions: Owners must use the home as their primary residence and cannot rent it out.
- Asset Limitations: Households with assets over $250,000 are ineligible, which may exclude some potential buyers.
Program Type
This program offers affordable homeownership opportunities by providing homes at below-market prices. It does not offer direct grants or down payment assistance.
Sources
Final Thoughts
Embarking on the path to homeownership is a significant step, but with programs like this, the City of Davis is committed to making it more accessible for first-time buyers. If you have any questions or need further assistance, feel free to reach out to the city’s housing division at affordablehousing@cityofdavis.org or call 530-757-5623. Happy house hunting! 🏡
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