Hey there! I know that buying your first home can feel like a daunting journey, but there are programs designed to make it more manageable. Let’s chat about the City of Modesto’s Homebuyer Assistance Program (HAP), which could be a great resource for you.

Program Name:

City of Modesto Homebuyer Assistance Program (HAP)

Source of Funding:

This program is funded through federal grants, including the Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) programs, administered by the U.S. Department of Housing and Urban Development (HUD). Source

Eligibility Criteria:

• First-Time Homebuyer Status: You must not have owned a home in the past three years.
• Income Limits: Your household income should be at or below 80% of the Stanislaus County Area Median Income (AMI), adjusted for household size. Source
• Creditworthiness: Applicants should have good credit, with no outstanding judgments or liens, and must qualify for a primary mortgage from a lender.
• Property Requirements: The home must be within Modesto city limits, in a residentially zoned area, and meet certain standards, including construction date and condition.

Benefits:

• Gap Financing: The program offers up to $60,000 in assistance to bridge the gap between the purchase price and the amount you can afford with your primary mortgage.
• Deferred Payments: For households earning up to 80% AMI, the loan accrues 3% simple interest for the first 20 years, then 0% for the remaining 10 years, with payments deferred for 30 years.
• Closing Cost Assistance: Up to 5% of the assistance can be used for non-recurring closing costs.

Potential Drawbacks:

• Repayment Terms: The loan becomes due upon sale, transfer, rental, or if you stop occupying the property as your primary residence.
• Property Restrictions: Certain properties, such as those in flood zones or with in-ground pools, may be ineligible.
• Funding Availability: Assistance is subject to available funding, and applications are processed on a first-come, first-served basis.

Application Process:

1. Pre-Approval: Secure pre-approval for a primary mortgage from a lender.
2. Homebuyer Education: Complete a HUD-certified first-time homebuyer education course.
3. Application Submission: Submit an application