Hey there! Navigating the journey to homeownership can feel overwhelming, but I’m here to help simplify things for you. Let’s explore the City of Mission First Time Homebuyer Assistance Program, designed to assist first-time homebuyers like yourself in achieving the dream of owning a home.

Program Name:

City of Mission First Time Homebuyer Assistance Program

Source of Funding:

City of Mission

Eligibility Criteria:

• First-Time Homebuyer: You must not have owned or had an ownership interest in a principal residence during the past three years.
• Residency: The property you intend to purchase must be within the City of Mission.
• Income Limits: Your total annual household income must not exceed the program’s specified limits, which vary based on household size.
• 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 homebuyer education course from a U.S. Department of Housing and Urban Development (HUD)-approved counseling center is required.
• Mortgage Pre-qualification: You must be pre-qualified for a fixed-rate first mortgage and have a positive credit history. Co-signers and variable rate loans are not permitted.

Benefits:

• Down Payment Assistance: Eligible applicants can receive up to $120,000 in down payment assistance with a 0% interest rate.
• Loan Forgiveness for Veterans: U.S. military veterans or active-duty personnel may qualify for loan forgiveness of up to $40,000 over twenty years, with $10,000 forgiven every five years.

Potential Drawbacks:

• Property Restrictions: The program does not allow the purchase of multi-family properties, including duplexes, triplexes, or properties with additional habitable units. Only owner-occupied residences are eligible.
• Repayment Terms: The loan is due in full as a lump sum at the end of 45 years or when the property is transferred to another party. If the property is refinanced and equity is cashed out, the loan must be repaid in full at that time.

Application Process:

1. Homebuyer Education: Complete the required 8-hour HUD-approved homebuyer education course.
2. Mortgage Pre-qualification: Choose a local lender and obtain pre-qualification for a first mortgage.
3. Property Selection: Sign a purchase contract for a home within Mission and open escrow.
4. Application Submission: Submit a complete application along with all required documents to the City of Mission.

Taking advantage of this program can make homeownership much more attainable, especially if saving for a down payment has been a challenge. If you’re eligible, it’s definitely worth exploring!