Hey there! I know that buying your first home can feel like a daunting journey, especially when it comes to gathering enough funds for a down payment. But here’s some good news: the City of Napa offers a fantastic program designed to make this process a bit easier for first-time homebuyers like you.

Program Overview

The City of Napa provides down payment assistance through a silent second (deferred payment) loan, aimed at helping eligible first-time homebuyers purchase homes within Napa’s city limits.

Funding Source

This program is funded by grants from the State of California’s Department of Housing and Community Development.

Eligibility Criteria

• First-Time Homebuyer Status: You must be a first-time homebuyer or not have owned a home in the past three years.
• Income Limits: Your household income must not exceed 80% of the median income for Napa County, adjusted for family size.
• Homebuyer Education: Completion of a certified homebuyer education program is required.
• Credit Score: A minimum credit score of 620 is necessary.
• Owner Occupancy: The property must be owner-occupied or vacant for at least 90 days prior to the purchase agreement.

Benefits

• Loan Amount: You can receive up to $150,000 or 30% of the purchase price, whichever is less.
• Interest Rate and Terms: The loan carries a 1% simple interest rate, with no payments required, and is due in 30 years.
• Maximum Purchase Price: The maximum purchase price limit is $764,750 for both single-family homes and condominiums.

Potential Drawbacks

• Repayment: Although payments are deferred, the loan amount plus interest is due in full after 30 years or upon sale or transfer of the property.
• Primary Residence Requirement: The property must be your primary residence; renting it out could violate the loan terms.

Application Process

1. Pre-Approval: Obtain pre-approval for a fixed-rate mortgage from a lender.
2. Homebuyer Education: Complete a certified homebuyer education program.
3. Application: Apply through the City’s online participant portal.
4. Approval and Purchase: Upon approval, work with a realtor to find an eligible property within Napa city limits.

Program Type

This program offers down payment assistance in the form of a deferred payment loan.

Learn More and Apply

If you’re considering buying your first home in Napa, this program could be a valuable resource to help you achieve your homeownership dreams. For more detailed information and to apply, visit the City of Napa’s official website.

Category: California

Subcategory: Napa County