Hey there! Navigating the journey to homeownership can feel overwhelming, but the City of Merced offers a fantastic resource to make this dream more attainable for first-time buyers like you. Let’s delve into the details of the City of Merced First-Time Home Buyer Program to see how it can assist you.

Program Overview

The City of Merced, in collaboration with Self-Help Enterprises, provides a Homebuyer Assistance Program aimed at supporting low- to moderate-income individuals and families in purchasing their first home within the city limits. This initiative offers deferred-payment loans to help cover down payment and closing costs, making homeownership more accessible.

Funding Source

This program is funded through the California Department of Housing and Community Development’s CalHome Program. In April 2022, the City of Merced was awarded $2.5 million in CalHome funds to support first-time homebuyers and owner-occupied rehabilitation assistance programs.

Eligibility Criteria

To qualify for this program, applicants must meet the following requirements:

• First-Time Homebuyer Status: Applicants must not have owned a home in the past three years.
• Income Limits: Household income must not exceed the maximum limits set by the program, which are based on household size and updated annually. For example, as of 2022, the income limit for a household of four is $55,900.
• Owner Occupancy: The purchased property must serve as the applicant’s primary residence.
• Location: The property must be located within the City of Merced.
• Homebuyer Education: Applicants are required to complete a HUD-approved homebuyer education course.

Benefits

• Deferred-Payment Loans: The program offers loans to cover a portion of the down payment and closing costs. These loans are deferred, meaning no monthly payments are required, and they are repaid upon sale, transfer, or refinancing of the property.
• Affordability: By reducing the initial financial burden, the program makes monthly mortgage payments more manageable for first-time buyers.

Potential Drawbacks

• Funding Availability: Assistance is provided on a first-come, first-served basis and is subject to the availability of funds. Once funds are exhausted, applicants may need to wait for additional funding or seek alternative assistance programs.
• Resale Restrictions: There may be restrictions on the resale of the property to ensure it remains affordable for future buyers.

Application Process

1. Pre-Approval: Obtain pre-approval for a primary mortgage from a recognized lender.
2. Homebuyer Education: Complete a HUD-approved homebuyer education course.
3. Application Submission: Submit an application to the City of Merced’s program administrator, Self-Help Enterprises, along with necessary documentation, including proof of income, employment, and first mortgage pre-approval.
4. Property Selection and Inspection: Once approved, select an eligible property within the City of Merced. The property will undergo an inspection to ensure it meets program standards.
5. Loan Approval and Closing: After the property passes inspection, the deferred-payment loan is approved, and you can proceed to close on your new home.

Program Availability

This program is available exclusively within the City of Merced, California.

Contact Information and More Details

For more detailed information and to access the program guidelines, you can visit the City of Merced’s official website or contact Self-Help Enterprises directly.

City of Merced Official Website

Self-Help Enterprises

Final Thoughts

Embarking on the path to homeownership is a significant milestone, and programs like this one can help make that dream a reality. If you’re considering buying your first home in Merced, this could be the perfect opportunity to get the support you need to make it happen!

Category

California

Subcategory

Merced County