The First-Time Hombuyer Assistance Program provides up to $60,000 in down payment assistance
to qualified low-income households purchasing a home in the City of Garden Grove. The City's assistance is in the form
of a deferred repayment ("silent") loan that requires no monthly payments for 30-years. As such, participating
lenders (listed below) have agreed to not consider this loan when calculating the applicant's debt-to-income ratio.
While the City's loan does not require monthly payments, it does accrue three percent simple interest each year. Repayment
of the City's loan is due in 30 year, upon transfer of title of the home before 30 years or if the senior mortgage is
refinanced in order to extract accrued equity ("cash-out" refinance). Eligibility - The applicant's
household income must fall within the low-income limits listed below based on household size
- The
applicant(s) must be a first-time home buyer meaning they have not owned a home in the last three years.
- The applicant(s) must qualify for a 30-year fixed rate loan (Conventional or FHA) from a participating lender.
- Submit the Certificationi of Program Eligibility (download copy below) and send to the City of
Garden Grove, Neighborhood Improvement Division, 11222 Acacia Parkway, CA 90242.
- The applicant(s)
must contribute at least one percent (1.00%) of the home purchase price from their own funds towards the home purchase.
- The home purchased must be a fee-simple, single-family home, town home or condominimum located
in the City of Garden Grove. The maximum home purchase price is $451,250. Manufactured homes on leased land are
not allowed.
- The applicant must complete an eight-hour HUD-approved home buyer education
class within the last year prior to application (you can register for an upcoming workshop on this site)
- The property purchased must be in habitable condition at the close of the purchase escrow. The City will conduct
an inspection of the property and may require that certain property deficiencies be repaired before closing.
Househod Income Limits Income from all adult household members including persons who will not be borrowers on the mortgage
loan are counted toward the household income limit. Household Size: | 1 | 2 | 3 | 4 | 5 | 6 | | Income Limit: | $51,700 | $59,100 | $66,500 | $73,850 | $79,800 | $85,700 |
Participating Lenders | Leder Name | Contact | Telephone Number | Languages Spoken | Civic Center Home Loans
| Matthew Callahan
| (562) 696-3200 | English, Vietnamese, Spanish | I Mortgage | Rurik A. Madrid | (818) 943-0980 | English, Spanish | Pacific Mercantile Bank | Alex Cifuentes | (949) 367-0243 | English, Spanish |
For
more information about becoming a Participating Lender, please call (714) 741-5330.
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Lender / Real Estate Agent Resources The
following information is intended to help participating lenders and real estate agents utilize the City of Garden Grove First-Time
Homebuyer Loan Program for their clients. Real
estate agents should prepare purchase contracts in accordance with the instructions and requirements of their brokerage. However,
generally the City's down payment assistance is shown as a "Second Loan" under Section C (2) of the California Residential
Purchase Agreement (RPA-CA) developed by the California Association of Realtors. The amount of the initial deposit can
be any amount, however by the close of escrow the applicant must contribute at least one percent (1%) of the purchase price
from their own funds (however there is no maximum amount the borrower may contribute). It is not usually possible
to close purchase transaction involving the City's First-Time Homebuyer Loan program in less than 60 days. It is not
possible for the City to expedite closings to accmodate short escrow periods. The City of Garden Grove does not require
Section 1 termite clearance (but the first mortgage lender may require clearance). However, the City does require that
all serious code violations and/or hazardous property conditions be repaired before the close of escrow. Seller credits
toward buyer's costs are permitted up to the three percent of the home purchase price. It is expected the the
buyer will receive a one-year home warranty for the home at the close of escrow, so this should be addressed in the purchase
agreement, it can be paid for by the seller, agent or buyer. HELPFUL
DOCUMENTS TO DOWNLOAD FOR FREE:
Click Here to Download Program Fact Sheet
Click Here to Download Lender Handbook
Click Here to Download Funding Reservation & Inspection Request Form
Click Here to Download Program Application
Click Here to Download Certification of Program Eligibility
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